At the end of the life cycle of an item of technology, the issue arises as to whether it is more economical to use or dispose of obsolete equipment. As improvement in computer technology accelerates, this issue can arise within a year or two of purchase. In some cases, particularly where the technology will continue to perform satisfactorily notwithstanding that it is obsolete, it may be worth retaining. In other cases, it may be desirable to upgrade technology quickly in order to gain some benefit from reselling the old equipment while it retains some value.
The issue of when to upgrade obsolete equipment must be taken into account when budgeting, as it will impact on the likely cost of the technology in the long term.
On the other hand, if the life of a piece of technology can be extended so that it can be used over several electoral events, the cost of that technology can be amortised over that time. This will serve to reduce the longer-term cost of implementing technology.
This approach necessitates a deliberate decision to reuse technology even where it may in industry terms be obsolete. Provided that the technology continues to perform its intended service to an acceptable standard, this is generally sound practice.
In addition to avoiding the cost of upgrading to new technology, reusing existing technology has the advantage of familiarity, and avoids the pitfalls of implementing new, possibly untested, technology.
When deciding whether to reuse technology and amortise it over two or more electoral events, the cost of maintaining and if necessary upgrading or enhancing that technology should be weighed against the cost of replacing it. The most economic course will depend on the particular type to technology being considered and the timeframes involved.
When a decision has been taken to dispose of obsolete equipment, it may be possible to achieve some return on the investment made on that equipment by selling it. Technology that may be obsolete in one jurisdiction or industry may be still an improvement on technology in use elsewhere. While any returns to be gained are unlikely to be a significant offset on the original purchase price, there may still be value in selling obsolete equipment rather than simply destroying it or giving it away.
Governments often have agencies that specialise in disposing of obsolete equipment on a whole-of-government basis. Some governments distribute obsolete equipment to other jurisdictions as a form of aid. Other agencies under the same government umbrella may be happy to accept obsolete equipment. For example, schools may be interested in receiving obsolete personal computers for student use.
If these options are not available or feasible, it may be practicable to sell obsolete equipment by tender or auction, or simply by setting a reasonable market price on the equipment and advertising it for sale.
See also Depreciation and Amortisation Policies
