The Total Economic Impact™ Of Atlassian Jira Service Management

Cost Savings And Business Benefits Enabled By Jira Service Management

A Forrester Total Economic Impact Study Commissioned By Atlassian, December 2024

In today’s rapidly evolving digital landscape, traditional IT service management (ITSM) approaches often fall short in addressing the complexities of modern business environments. The rise of digital business, the shift towards distributed workforces, and the prevalence of siloed teams demand a more agile and integrated solution. When business and IT service teams, operations, and developers work in a connected environment, end users benefit from a high-velocity, responsive, and transparent service experience.

Jira Service Management from Atlassian is designed to enhance collaboration and efficiency across IT, development, and business teams. It integrates end-to-end practices across service request, incident, problem, change, knowledge, asset, and configuration management, which can empower teams to deliver high-velocity servic e experiences by improving visibility and accelerating the flow of work. Additionally, the AI capabilities of the Atlassian platform — including process automation, machine learning, and generative AI (genAI) — can enhance collaboration across teams and enable support and service agents to work smarter with less effort. The focus on simplicity and rapid deployment allows organizations to realize the benefits of genAI without complex training processes while the implementation of virtual service agent capabilities facilitates self-service and request deflection.

Atlassian commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Jira Service Management. 1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Jira Service Management on their organizations.

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Return on investment (ROI)

275% 275%

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Net present value (NPV)

$7.0M $7.0M

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To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed five representatives at organizations using Jira Service Management. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization that is a hospitality and food service technology vendor with 14,000 employees and annual revenue of $3.51 billion.

has 0 total employees with 0 total license users, and it avoids $0 in legacy solution costs with Jira Service Management. Custom results are based on your inputs and the TEI case study.

Interviewees said that prior to using Jira Service Management, their organizations either relied on complex traditional ITSM solutions that were not fully utilized or they employed a collection of disparate tools for communication and service management across different regions and departments. Disjointed support delivery methods led to inconsistent service levels, fragmented processes, disconnected workflows, and limited organizational visibility. Several of the organizations faced worsening inefficiencies and slow response times due to using multiple tools. Additionally, these tools were neither scalable nor user-friendly, complicating support for global user bases.

After the investment in Jira Service Management, the interviewees’ organizations experienced a reduction in annual ITSM expenses. The interface and scalability enabled the organizations to implement AI-driven automation for self-service and more effective service delivery. Moreover, integration with existing Atlassian solutions and other collaboration platforms improved teamwork and enabled centralized service management processes. As an enterprise management solution, the Atlassian platform enhanced visibility into the organizations’ service levels and performance across regions and departments by providing automated workflows, standardized processes, and governance practices.

Key Findings

Quantified benefits . Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:

  • Improved service desk productivity. The composite reduces the number of IT support requests logged and improves IT support and service desk efficiency with Jira   Service Management. By Year 3, ticket deflection reaches 30% and ticket-handling efficiency improves by 30%, saving agents substantial time and enhancing overall productivity. Over three years, the improved service desk productivity is worth more than $2.9 million to the composite organization.

For , this benefit could be worth over three years.

  • Improved end-user productivity savings worth $3 million. The composite finds the solution’s interface to be easy to use, and this along with improved request visibility, automation, and AI-assisted self-service options save employees an average of up to 25 minutes per request. This improves employee productivity and allows them to prioritize work that matters.

For , this benefit could be worth over three years.

  • Improved IT operations team productivity. Jira Service Management significantly improves the composite’s incident and change management practices by increasing visibility into risks and enhancing collaboration with other teams (e.g., software developers). IT operations staff save time on problem resolution, incident response, and change approvals while AI-driven features and native configuration management database (CMDB) capabilities improve processes and boost efficiency. Over three years, these efficiencies add up to $866,000 for the composite organization.

For , this benefit could be worth over three years.

  • Improved software engineer and decision-maker productivity. Jira Service Management streamlines the composite’s work intake, improves collaboration, and expedites incident resolution, which benefits both software developers and decision-makers across IT and business teams. Users save time through more distributed organizational control and standardized, automatic reporting. By integrating with Jira, automating routing and escalation, and providing AI-driven features like ticket summarization, the composite organization realizes efficiencies valued at over $362,000 over three years.

For , this benefit could be worth over three years.

  • Cost savings from retiring previous solutions. By switching to Jira Service Management from a traditional service management solution, the composite organization eliminates its previous investment of $867,000 per year in license costs, and $235,000 per year in management labor and services. Altogether, this is worth approximately $2.3 million over three years to the composite organization.

For , this benefit could be worth over three years.

Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:

  • Enhanced consistency and collaboration across departments. The composite organization establishes a consistent approach to service management and improves communication and collaboration between teams through the companywide adoption of Atlassian, promoting a culture of continuous improvement.
  • Better visibility and data-driven decision-making. By centralizing the tracking and visibility of work, incidents, and service requests, the composite achieves better knowledge-sharing. This improved visibility leads to more consistent service levels and enhances data-driven decision-making.
  • Greater operational resilience and service delivery. The composite realizes improvements in service delivery and core technology operations. Teams operate autonomously, but they can maintain consistent service management practices and improve operational resilience.
  • Improved employee and customer experiences. By reducing manual effort, streamlining processes, and providing better tools, the composite organization improves employee satisfaction and productivity. Centralizing documentation and automating repetitive tasks reduces frustration among employees and further enhances customer satisfaction.

Costs. Three-year, risk-adjusted PV costs for the composite organization include:

  • Jira Service Management solution costs. The composite pays $430,200 annually for Jira Service Management’s enterprise plan for 1,200 service desk agents. The subscription covers comprehensive service management capabilities, including change, problem, incident, asset, and knowledge management. Enterprise service management capabilities for business teams are included in the Enterprise plan at no additional cost. The composite also incurs consumption-based costs for assisted conversations above 1,000 per month and stored objects in the asset repository with specific charges for interactions and objects exceeding the free thresholds. These comprehensive costs add up to just less than $1.2 million over three years.

For , this cost could be over three years.

  • Implementation and training costs. It takes nine months for four full-time equivalent (FTE) internal employees at the composite organization to implement request, incident, problem, asset, change, and knowledge management capabilities. The composite spends $100,000 to work with an Atlassian services partner between the initial period and Year 1. All service agents and end users incur minor internal labor costs for their time spent in training on the Jira Service Management portal. The composite invests a total of $626,000 over three years to implement new Jira Service Management instances and extend functionality for five additional business units.

For , this cost could be over three years.

  • Ongoing management labor. Ongoing management labor for the platform involves one dedicated employee and two to three additional part-time employees for basic maintenance, support, and administration. Additional resources are required for optimizing service management processes, implementing new service desks, and deploying virtual service agents. These costs for ongoing management labor add up to $737,000 over three years for the composite organization.  

For , this cost could be over three years.

The representative interviews and financial analysis found that a composite organization experiences benefits of $9.50 million over three years versus costs of $2.54 million, adding up to a net present value (NPV) of $6.97 million and an ROI of 275%.

“As part of our expansion into enterprise service management, we onboarded several project teams like people safety, food safety, and procurement to Jira Service Management, and [we] saw improvements in several service delivery metrics. During the weekends, for example, whenever I needed a resource from one of the project teams, their response time averaged 150 to 180 minutes. Now, our average response time is around 3 minutes.”

Manager of global service management, global restaurant chain

Key Statistics

  • icon icon

    Return on investment (ROI)

    275% 275%
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    Benefits PV

    $9.5M $9.5M
  • icon icon

    Net present value (NPV)

    $7.0M $7.0M
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    Payback

    6 months 6 months
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Benefits (Three-Year)

Improved service desk productivity Improved end user productivity Improved IT operations productivity Improved engineer and decision-maker productivity Cost savings from retiring previous solutions

TEI Framework And Methodology

From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Jira Service Management.

The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that Jira Service Management can have on an organization.

  1. Due Diligence

    Interviewed Atlassian stakeholders and Forrester analysts to gather data relative to Jira Service Management.

  2. Interviews

    Interviewed five representatives at organizations using Jira Service Management to obtain data about costs, benefits, and risks.

  3. Composite Organization

    Designed a composite organization based on characteristics of the interviewees’ organizations.

  4. Financial Model Framework

    Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.

  5. Case Study

    Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.

Disclosures

Readers should be aware of the following:

This study is commissioned by Atlassian and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.

Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Jira Service Management. For the interactive functionality using Configure Data/Custom Data, the intent is for the questions to solicit inputs specific to a prospect's business. Forrester believes that this analysis is representative of what companies may achieve with Jira Service Management based on the inputs provided and any assumptions made. Forrester does not endorse Atlassian or its offerings. Although great care has been taken to ensure the accuracy and completeness of this model, Atlassian and Forrester Research are unable to accept any legal responsibility for any actions taken on the basis of the information contained herein. The interactive tool is provided ‘AS IS,’ and Forrester and Atlassian make no warranties of any kind.

Atlassian reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.

Atlassian provided the customer names for the interviews but did not participate in the interviews.

TEI Consultant:

Anna Orban-Imreh

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