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Obtain visibility and control over IT service costs

The problem

Today many organisations struggle to measure the real cost of IT services. Services such as data centres, applications, email, and networks can be hard to define and even harder to cost. It is also hard to know if costs are reasonable.
The causes: In large part this is because accounting systems and accounting disciplines are not setup to either define or report on these types of services. Without a great deal of time and effort it can be very difficult for organisations to establish fully effective IT service cost control mechanisms. In addition, the existence of complex IT infrastructure built up over time, a lack of transparency in vendors’ costs, and the arrival of new technologies with very different pricing models can all contribute to making cost transparency a real challenge.
Finance systems have all the numbers and know where the big costs are, however, they are rarely able to convert these costs into specific IT services, such as the running of a particular data centre. On the other side, IT organisations have all the equipment and services and know where all the various technologies are deployed, but usually lack the detailed financial data which maps easily onto the IT services they run.

The solution

We solve this problem by running a specially configured IT cost allocation model. The model is designed to present IT costs in a manner that provides for inter and intra organisational comparison. This allows IT and Finance professionals not only to see what the real costs are, but also to see where in the organisation the most cost efficient use of technical services exists and which technologies underlie that efficiency.

The result

Demonstrably lower cost, more effective IT; facilitated through greater visibility and control over IT service costs.

The Model

A sophisticated and well-tested method for achieving such clarity in IT service costs.
Over the last four years, the model has been proven in multiple instances in industries ranging from banking to logistics, and can now also be run specifically to show likely financial impact of deploying new IT services, processes or technologies.
The model is easy to deploy and in every instance it has been run, IT cost reduction opportunities have been identified.

How we do it