Modernise Chargeback to Address Risk and Optimise ICT Costs
Chargeback of enterprise-wide ICT costs were developed to assign ICT costs to the point of usage. The outcome is twofold; it ensures the initial allocation of ICT assets and services are identifiable, and it enables reallocation of underutilised or unnecessary services. This relies on IT creating assets and services which are commodified and transferable.
A chargeback arrangement can increase tension between ICT and the department managers. Allocating all ICT costs to achieve a zero-sum IT department can exacerbate that tension. Making IT fully responsible and accountable for IT costs can create insular behaviours which stifle innovation and investments in new IT services for departments. Departments will feel entitled to explore ICT improvements without an effective relationship with IT. Creating a chargeback governance model that manages disputes and builds trust in the process is preferable.
About The Advisor
Mark Unwin is an IBRS advisor specialising in the areas of commercial contract negotiation and vendor management. Mark has a career spanning 25 years across Government, Defence, ICT, Telecommunications and Infrastructure, and in this time has developed innovative solutions to transition and transformation ICT contracts, including project management, effective negotiation and relationship management. Mark is adept at aligning ICT service providers using the ITIL service delivery model in particular encompassing service desk implementation, asset management, unified communications and collaboration, end-user computing, ERP systems design and implementation, and software deployment and licensing. Mark has negotiated software audits and licensing agreements for Microsoft, Adobe, Veritas, SAP and Oracle. Mark is CPA qualified and has supported CIOs and CFOs to justify ICT investment programs throughout his career.