CIOs are frequently under pressure to justify expenditures on IT and demonstrate the value of IT. Business and financial leaders can see expenditures on hardware, software, contracts, and labor, but have difficulty correlating these expenditures with benefits to the business.

Service-based costing helps to translate expenditures into value through transformation of dollars into output. This research will help you:

  • Define the relevance of service-based costing to your organization.
  • Identify your current service-based costing needs and level of maturity.
  • Improve your service-based costing capability.
  • Determine the cost of your IT services.
  • Use costing information to drive business value.

However, service-based costing is extremely difficult to do. Costs can be difficult to identify, allocations are complex, data may not be available, and service definition may be insufficient. The Info-Tech approach allows you to “grow as you go,” making use of your existing service data and improving your service-based costing capabilities as the organization matures.

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Establish a Service-Based Costing Model

Not knowing your costs is an expense you can’t afford.

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Search Code: 75896
Published: September 5, 2014
Last Revised: September 5, 2014

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