References:
BS15000/AS8018: Section 5.4: Budgeting and accounting for IT Services
COBIT: Planning and Organization: Section – P05
COBIT: Delivery and Support Section – DS6
Supporting PCAP Products:
IT Manager Job Description
Service Cost Manager Job Description (indev)
IT Budgeting Procedure
Comments:
Budgeting for IT Services
A standard, typically, annual budgeting cycle driven by the Finance Department is the normal method of accomplishing this activity. Standard regular budget reporting and forecasting activities apply.
IT Investment Planning
A particular important aspect of the IT Budgeting Process is the IT Investment Requirements which must take into account cycles of hardware and software refresh to ensure the IT Operating Environment continues to be viable in terms of maintainability and supportability.
Funding via Company Tax
IT Department costs are negotiated between the Finance Department and the IT Department and paid for by the businesses and functions via a ( typically) proportional tax negotiated with the business by the Finance Department based on usage data from the IT Department.
Funding via On Demand Charge Out
A number of easily definable services may have standard charges based on average work effort required and are charged out to cost centers based on demand from that cost center, e.g. PC installation, PC moves, telephone installation, telephone moves. Typically billed monthly.
Service Cost Management
The recording and management of all internal IT Department cost associated with a particular service. This data is then used to price the standard services to the businesses. The data can also be used in a benchmarking context to compare similar service cost between companies. A Service Cost Management tool is usually required to carry out this work. One such tool that we have observed in use is Metify, others are available.
Last edited on Mon Dec 27th, 2004 05:14 pm by bobmckean
|
