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Service Costing Model & Financial Management Process - IT Charging

    General discussion

  • The trend is going towards IT charging nowadays. Unfortunately, many SLAs have been establised without sound basis for the Charging policy.   I know that not too many topics or best practies have been discussed around this subject. What is the best practice to establish Service Costing Model? what contributes to this costing model? How is it calculated? How is the Financial Management Process is being implemented in practice?

    Let's open the discussion? 
    Khalid Hakim | IT Operations Consultant | MOF Trainer | ITIL Service Manager | ISO20000 Consultant | MSF Practitioner | PMP
    Friday, May 16, 2008 11:28 AM

All replies

  • Hi Khalid,

    Very nice topic, my friend, lets discuss about this. Here in Brazil we have many suppliers and we compare all offers, one by one and through this the Service Costing model is built. For internal cost we use a consulting for fist time and to other times we use historical models. Part of Financial Management is do on Excel (for basis process) and for all other integrated methods for financial we use ERPs like SAP or Microsiga (The most used ERP on Brazil).

    Best Regards,

    Cleber Marques
    MOF Brazil Project
    www.clebermarques.com
    Friday, May 16, 2008 11:43 AM
    Moderator
  • I am not seeing that much of a move to IT charging in the organisations I work with....Cost accounting yes, but not so much around charging. I think that this is still a difficult topic for IT to effectively address with their business. And this is driven both by IT not having the confidence to push it and the businesses not wanting to move to a charging model.

    Certainly businesses are requiring increased transparency and accountability for spending, but there seems to be a resistance to going to a whole cross charging implementation. I am seeing an increased requirement to manage benefits though - historically IT discretionary spend has been full of promise but realisations normally fall short - and so now there seems to be more business involvement in the project side of things. And where it stopped once the project deployed, they seem to be more across the ongoing governance. All very good things. And this will drive the focus on financial management higher.

    Today though I see the charging aspect being driven by partners, providers, outsourcers, etc. And it will become increasingly important as  businesses start moving towards the SaaS. So IT organisations have a way to go yet. But I'd be keen to hear if my experiences are consistent with what others are seeing?

    Cheers
    Gary

    Friday, May 23, 2008 5:16 AM