Financial Management
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  • Goal
  • Why financial management for IT Services
    • Assist in the management  and reduction of overall long term costs
    • Identify the actual cost of services and their provision
    • Providing accurate and vital financial information to assist in decision making
    • Identify how IT adds value to the customers business
    • Enable the calculation of total cost of ownership and return on investment
    • Make customers aware of what services actually cost, if appropriate
    • Support the recovery of costs from customers if appropriate in a fair equitable manner
    • Provide measurements of value for money and provide incentives to produce quality services aligned to business needs
    • Help influence customer behaviour for example b providing incentives for using non-critical resources
    • Encourage more efficient use of resources
    • Provide better cost information and control of external contracts and suppliers
    • Assist in the assessment and management changes
    • Enable the organisation to account fully for the spend on IT services and to attribute these costs to the services delivered to the organisation's customers
    • Assist management decisions on IT investment by supporting detailed business cases for changes to IT services
    • Control and manage the overall ITbudget and enable the fair and equitable recovery of costs (by charging) for the provision of IT
  • Cost elements
    • Hardware: Mainframes, disk storage, networks, PCs, portables, local servers
    • Software: Operating systems, applciations, databases. monitoring and management tools
    • People: Payroll costs, benefits, re-location costs, ecpenses and consultancy
    • Accommodation: Offices, storage, secure areas, utilities
    • External Service: Security services, DR (Disaster Recovery), Outsourcing services
    • Transfer: Internal charges from other cost centres within the organisation
 

 

 
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by: www.turnerdesign.org