Expenses within IT are often quite substantial, and are seldom revenue producing, so it’s important to see how these expenses, and in particular the cost of public and private clouds, are shared among the revenue-producing business units.
The goal of chargeback should be to provide those units with information that’s understandable and transparent, allowing them to control or predict the cost of performing a particular activity.
But because fear of chargeback can often paralyze even the best-run IT organizations and prevents the implementation of beneficial maturity improvement, some organizations implement showback as a necessary first step. Once achieved though, chargeback can place IT in a strategic position that builds financial transparency and a business-value focused environment. You can ensure that resources are focused on areas that are demand-driven, and you’ll have increased confidence in setting and managing IT budgets.
Download this mini-paper now to see what we think your boss should know about chargeback and showback, so you can start building that strategic position in your organization.