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IS Processes and Cost Alignment

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What are some of the reasons that organizations adopt a charge back process for IS services?

What are some of the ways that IS leaders can ensure that the costs of providing a service such as help desk support are aligned with the service levels wanted by business leaders?

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Solution Summary

The solution gives a number of reasons for using the charge back process for IS services before outlining how the no charge method and fixed charge method can be used to align the costs of IS services. 544 words with 2 references.

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Reasons for Using the Charge back Process for IS services

A large number of organizations are using charge back process with a view to charge the users for the usage of IT services. The organizations are doing this so that the costs incurred on information technology can be controlled. The charge back process has been an old phenomenon, but recently it has seen a massive increase in terms of usage. By following a charge back process for the IT services, a price can be set for every single IT service by the IT function of an organization. In addition to this, the users or functions of an organization that use such services are billed for such usage. By doing so, it can be calculated as to how much the contribution of IT to an organization is, and how much it costs the organization. The main reasons for an increase in the use of ...

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Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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