Our IT Service Management Cost Optimization Solution meets the challenge of today’s CIO to:

“Scale the cost of IT to meet the changing business demands for IT services.”

Whether you are considering implementing a true charge-back model or simply want a better understanding of how IT costs are  allocated to lines of business (or should be), the ITSM Cost Optimization Solution is designed to calculate IT Service cost at a granular level.

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With the ITSM Cost Optimization Solution your IT organization can:

• Accurately baseline and forecast the fully loaded cost of IT services, including all unit cost drivers, such as infrastructure, software, outside vendors, labor, facilities and application support costs.
• Provide a charge-back or allocation report as a “Bill of IT,” including visibility into the costs and utilization of IT services.
• Perform detailed “What If” analysis to accurately forecast costs of new services, IT investments, service levels or alternative delivery models based on current or future cost drivers.

We quickly accomplish this by guiding the IT leadership team through a comprehensive and structured approach to define IT services and cost drivers, and allocate the correct portion of those costs to the appropriate consumer and IT organization down to the ‘Service Work Unit’ level. The end result is transparency about IT services, cost, and activities/work that validate how the budget is being allocated across the entire IT organization.

Additionally, the IT leadership team has the IT business intelligence needed to respond quickly to often unanswered questions, such as:

• What is driving up the cost of IT, and what can we do about it?
• What are the significant IT cost drivers?
• How cost-effective is internal IT compared to other alternatives?
• How can we reduce IT costs with the least impact to business?

The ITSM Cost Optimization Solution incorporates ITIL IT Financial Management, Activity Based Cost (ABC), and Total Cost of Ownership (TCO) accounting industry practices.  It also delivers a broad set of functionality spanning IT Performance Management, IT Demand Management, IT Cost Modeling, and IT Resource Management.

Our clients tell us they quickly achieved:

• Improved collaboration between Finance and IT that increased visibility into the costs, utilization and operations of IT services.
• A powerful “What If” analysis capability, enabling improved scenario planning for better IT investment decisions and cost reductions.
• The capability to better illustrate the “Bill of IT”, to more effectively communicate the value of IT to the business, and to scale cost to business demand for IT services.

Being able to scale and optimize IT cost is critical to meeting today's business demands. Doing this successfully, means that you must understand the costs of a service, and allocate the correct portion of those costs to the relevant business unit or consumer.