Robert Kugel's Analyst Perspectives

Make IT Spending Transparent

Posted by Robert Kugel on Aug 9, 2012 10:17:50 AM

What does it cost to run an IT department? That’s an easy question to answer, but for most companies, why it costs that amount is not. IT departments often complain that most of their budget is devoted to funding daily operations and basic maintenance (“keeping the lights on”), but often, one big overlooked problem is the chargeback process that most companies use to assign IT department operating costs.

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Topics: Operational Performance Management (OPM), ABC, Budgeting, chargebacks, Business Intelligence (BI), Business Performance Management (BPM), Financial Performance Management (FPM), Activity Based Costing, innovation, IT cost