IT Chargeback/Showback (Financial Management)

Mahmood -

This is a significant change management exercise both for the LOBs who will need to get used to directly paying for IT services and IT staff who will need to start diligently reporting time spent on "billable" work. As such, engaging a qualified change manager is a must.

Kiron

Hi, my experience of defining a chargeback or showback model heavily depends on few things: 1. How the IT services are structured, built and delivered to your business 2. What are cost elements of each of these services and how are they built up into the overall IT costs i.e. Shared costs and dedicated costs or Direct and indirect costs 3. Compliance towards reporting actual service consumption (metered consumption or units consumption)

Defining a service model such as Business or Customer facing services built with a combination of Support Services and/or technical services and offer them through a Service Catalog. And then you can arrive at overall cost of delivering each of these BFS or CFS which will help you to define a unitary price for each service request which also contains the risk contingency.

In my opinion, start by analyzing the as-is situation with your IT Services and its cost parameters and i am sure you will get enough ideas to built the to-be chargeback or showback during this investigation or analysis phase.

All the best !!!