In general terms, development costs are about implementing projects; operational costs are about taking care of what has been implemented. Development costs are tracked by Strategic Oversight and cease when the project is completed. Operational costs are ongoing costs that will be incurred as a result of the project being implemented, and are not tracked by Strategic Oversight.
- In Arizona, IT costs are tracked using the following categories: Professional & Outside Services (P&OS) (e.g., contractor support), hardware, software, communications, facilities, licensing and maintenance fees, and other. Any one of these categories can include development and operational costs.
- For instance, software purchases and first year licensing fees would be considered a development cost (see year 1 box below). On-going software licensing and maintenance fees are considered operational costs (see year 2 box below).