Step 5

Service Costing & Benchmarking

USC IS THE PROCESS OF CALCULATING THE ACTUAL UNIT COSTS OF PROVIDING IT SERVICES

KEY POINTS

  • Once actual unit service costs are determined they can be compared to market rates to identify potential savings opportunities
  • One key goal for the IT organization is to have the cost of their services be at or below external service providers

DEPENDENCIES

  • Services must be defined first
  • Must have good consumption data
  • Need cost data that is aligned with services
  • Effective chargeback implementation requires unit service costs

UNIT SERVICE BASED COSTING EMPOWERS EXECUTIVE DECISION MAKING ABILITY THROUGH IMPROVED IT COST VISIBILITY

TRANSLATES IT DEPARMENT COSTS INTO SERVICE COSTS THAT ARE MEANINGFUL TO USERS / CUSTOMERS & ENABLES BENCHMARKING / SAVINGS IDENTIFICATION

BENCHMARKING
• START WITH HIGH LEVEL BENCHMARKS TO DETERMINE IF SPEND IS TOO HIGH
• USE MULTIPLE BENCHMARKS TO ‘PAINT AN OVERALL PICTURE’ OF SPEND

BENCHMARKING IS BOTH AN ART & A SCIENCE