Service Cost Allocation Management

One of the standing ask from IT by various business functions in an organization has been effective utility-like IT service cost allocation. Although, several models and approaches exist in this field, it is believed that about 30% of allocation is simply nothing but guesswork. This in turn means less-than-optimum cost model, ineffective cost recovery, overcharging some and undercharging some, funding discrepancies and lack of sponsorship for newer initiatives. All this leads to an inaccurate picture of current and future demands across various divisions in an organization.

To all this, if we add concepts such as Pay-as-you-go, Cloud Computing, Private Cloud, Subscription-based software, etc. we will notice that Service Cost Allocation Management becomes an extremely important aspect for IT Sourcing or IT Shared Service organization to drive efficient customer expectations and behavior.

Audit Report

Our CSAs will audit Service Cost Allocation Management (SCAM) associated with your Contract;

• Usage-based Cost Allocation
• Charge-back Model
• Base Rate Computation
• Unit Rate Card Structure
• Two-way traffic between business functions and IT Sourcing

Audit Execution

Our CSAs will suggest industry standard recommendation in Service Cost Allocation Management that is most suitable to your environment.
CSAs will work with your internal clients in;

• Complete Analysis of Service Cost Allocation Management.
• Elimination of deviations in your Charge Back Model.
• Discussions and Negotiations with Internal Clients.
• Introduction of transparency and automation using Rate Card Structure.
• Optimization of Cost Structure for tax/credits/tariffs.