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Home > Executive Report > Case Studies
Chargeback systems have been credited with helping companies better prioritize their IT initiatives, instill greater discipline in the planning and budgeting process, and enhance the credibility of their IT departments. Critics cite political and administrative headaches. Here, a proponent simplifies the case for chargeback.
As a customer, do you feel you get more value from a retainer service or a detailed billing of the services you have used? The retainer invoice may be very predictable, but it does not permit you to control the amount or level of service provided.
Now think about the perceptions that your customers may have about allocations vs. itemized billing of IT services. It is most likely challenging for them to see where their costs reside in terms of business as usual and new initiatives (products, services, cost reductions, growth). When the cost of daily operations and development isn’t clear, the business decisions for new initiatives become intuitive and not fact-based.
A Business within the Business
Nearly every IT organization experiences “not enough capacity” issues with its IT organizations.
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