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Chargeback systems fail. The reasons that these systems fail are rooted in issues such as organizational alignment – issues that cannot be fixed quickly or easily. Follow Info-Tech's approach to help introduce a healthy chargeback system that adds value to the enterprise.

A Chargeback System Defines IT as a Profit Center

Chargebacks allow the IT department to put a price on the technology it provides to the rest of the enterprise, so that value is perceived when "purchasing" IT services. Once IT defines its activities along with its costs, it can then charge these costs back to the business units, creating income for IT. For more information on chargebacks, refer to the McLean Report research note, "The Promise and Peril of Chargeback."

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Search Code: 7896
Published: January 16, 2007
Last Revised: January 16, 2007


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