Best Practices in IT Costing & Chargeback Solutions
Over years of working with a multitude of Information Technology leaders and employees of Fortune 1000 corporations, it has proved to be very telling to ask a series of questions concerning best practices in IT costing and chargeback:
Do you know what services your customers are consuming and how much?
Do you know how much each instance of those services costs?
Are you providing those services faster, better and cheaper than your competition?
In the majority of today's organizations, the answers to those questions would be "No", "No" and "How do I find out?"
A Service Based IT Cost Management methodology provides companies with an efficient way to manage their IT costs through a combination of detailed unit cost calculations and distributed accountability for service consumption (customer) and service unit costs (provider). In other words, IT service providers become responsible for providing the demanded services at a competitive price, while IT service consumers are more accountable for the types and quantities of services that they demand, creating a customer-focused internal market place.
The best way for any internal IT business to add financial value is to deliver services at a unit cost that is equal to or less than market price, with equal or greater quality compared to the market. The following white paper will provide guidance on how to reach these objectives and improve the overall capability of an IT organization to operate as a successful "business within a business."
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