HIPAA, Gramm-Leach-Bliley Act (GLBA), Sarbanes Oxley Act (SOX), and other privacy laws are forcing companies to take computer disposal very seriously because dire consequences can happen if the rules are not followed. For example, noncompliance with GLBA regulations could result in a fine on the CEO and board members of $10,000 a day.

Reformatting the hard drives isn’t enough. You must completely overwrite the old data on the drive at least 3-7 times and follow DOD 5220.22-M guidelines. According to the Aberdeen Group, a computer market research firm, the costs for a company to do this in-house are $50-$126/disk.

Besides taking up space in offices and storerooms, end-of-life electronics are a mounting waste stream. Rapid technology advances have caused electronics to quickly become obsolete. In 2003, according to Gartner research, 63 million PCs were thrown away. This type of ever-increasing volume is why the federal government imposes regulations about proper disposal.

Electronics contain hazardous or toxic substances, most notably lead, mercury, cadmium, and chromium. CRT’s contain an average of 6 lbs of lead. The federal government and most states and local governments have strict regulations about proper disposal, with heavy fines lobbied on those who do not comply. A new federal law for CRT’s was just passed on January 29, 2007.

Why pay to dispose of assets?
Significant time and money savings

Many have the impression that retired electronic products have substantial residual value. This is why so much older electronic equipment remains in storage. You can't believe it isn't worth something to someone. In fact, the older equipment gets, the more quickly its value fades and more money is spent in wasted storage space and additional costs to keep hauling it from this place to that place to hang onto it. Pretty soon, that closet full of PCs and monitors you thought had some value has cost you a ton of money.

A recent Gartner Research study points out that in-house PC disposal "presents unique challenges and potential costs that enterprises seldom consider." These costs are estimated at $400 per computer! These hidden costs include administrative costs of inventory, accounting, etc (including the people required to perform those duties); sanitizing hard drives, storage costs, packing/shipping, disposal fee, opportunity costs of doing something else, and more. $400 per computer for proper disposal done in-house!

Once you decide to retire electronic equipment, move quickly to maximize the value of transferring the equipment and the potential tax write-offs to which you may be entitled (the newer the equipment, the higher the value, the higher the tax benefit).

Stored IT equipment loses 6-10% of its value each month and can put your company at risk of improper handling of hazardous waste if stored too long.

Phone us today at 513-761-5333 to request a quote or a meeting.
Or e-mail us at: info@recyclegroup.net