IT chargeback is a very powerful tool that allows managers to control the increasing IT costs of the company. By establishing a fair cost allocation system…
Aligning IT with business strategy enables business unit managers to make decisions about financing resource distribution, cost revitalization and overall IT expenditure. For instance, some companies have explicit spending restrictions while others don’t.
How companies distribute IT resources varies widely. And while many companies employ some form of cost allocation, others don’t bother at all. However, if the goal is to promote the efficient use of IT resources, then implementing IT chargeback can be of great help in promoting responsible usage of IT resources among employees.
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Let’s be honest. Budgeting for IT is very difficult. Some don’t know how to do it properly. Worse, some don’t even recognize the need for IT budget planning.
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