Charging individual business units for the Information Technology resources they consume is an attractive proposition. But chargeback can also be a confusing quagmire that could even prompt users to go elsewhere for IT services. Before you start writing invoices, have simple, accountable, and efficient chargeback practices in place.
Why Chargeback?
Technology plays a crucial role in almost all facets of a modern business, yet business units often do not perceive the precise value of technology because it appears on their doorstep free of charge. It is left to the IT department, not the users, to justify the costs in the IT budget.
Charging business units for IT is seen to have the following benefits:
- Distributed budgeting. As IT resources—such as storage and processing time—are distributed around the company, so too are the costs. Business units are more directly accountable for IT costs...