Opex or Capex?
As an organisation we work with clients from advisory through to implementation and one area of particular interest is how clients financially budget for their projects and programs. We’ve seen HR improvements, technology and resources classified as both CAPEX and OPEX depending on the nature of the investment and an organisation's own accounting practices.
OPEX refers to the ongoing expenses that an organisation incurs to maintain it’s day-to-day operations and generate revenue such as salaries, rent, utilities, office supplies, maintenance and marketing expenses etc.
CAPEX refers to the expenses incurred to acquire, upgrade or improve long-term assets or investments that provide future benefits to the business.
About the author
Michael Halling
Michael, or Mike, is the CEO of Vitro and works closely with clients to discuss and define their current and future HR ambitions across the talent management spectrum. He knows that technology and process improvements are the greatest organisational enablers and understands systems and processes which can help an organisation meet their needs.
By Michael Halling
What do these terms mean?
In the context of project and resource costs, you may refer to OPEX as day-to-day ongoing operational expenses needed to complete the project, such as implementation, marketing, communications and change management costs etc. Whereas CAPEX, usually includes capital investments for project-related assets such as equipment, software, infrastructure or facilities that have a lasting benefit beyond the project's completion.
This short view is simply for ideation. We are happy to chat about what we’ve seen but please seek your internal advice and governance if you are in a role where HR programme management is a key focus.
To discuss this topic in greater detail, contact our team directly. We are always ready to support you.
What does this mean for a project or programme?
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