Shared Services Cost Allocations

Cost allocations are vital to leveraging a Shared Services operating model. Cost Allocations and Cost modelling are often time consuming, resource intensive processes when tooling such as spreadsheets or legacy systems that are not really fit purpose are used.

MagicOrange is purpose built to accommodate any cost allocation model and bring insight, stability, security and automation to your cost allocation process.

Do You Need Assistance With Any of the Following?

Are you experiencing disconnection between IT/Shared Services and the business?

Are your stakeholders frustrated with lack of visibility into allocation process output?

Is the turnaround time for results and queries too slow?

Is your cost model dependent on manual effort by key-man?

MagicOrange Can Help You Realize These Benefits

Achieve stability and scalability through a cloud-based solution

Accelerate value-add by your staff focusing on optimisation

Reduce time to complete and increase cadence and output

Automate your allocation process

Gain insights into your allocation model results rapidly

Improve agility

Empower your stakeholders with ground-breaking insights

Learn More

Whitepaper - Effective Allocation Methods

We bring clarity to allocation methods and how they influence your cost modelling

MagicOrange supports all allocation configurations and has the ability to cater for all known allocation methods. MagicOrange experts assist our customers in deciding on the best allocation methodology based on the organizational structure culture, strategy and reporting requirements associated with their chargeback needs. In order for Business Units to determine true profitability, their usage of Shared Services must be determined.  A charge back mechanism facilitates this and aids in driving organizationally aligned behavior. The most equitable and defendable basis for allocations is based on real world consumption. Follow the link to download the full report.

Read More

Who MagicOrange Helps


Struggles to defend the true cost of IT and measure IT asset utilisation

  • Clearly understand IT spend and total cost of ownership
  • Make fact-based decisions
  • Find opportunities to simplify, optimise, standardise, centralise, automate or renegotiate IT products, services or vendors


Have trouble understanding the impact of scenario changes on the allocation of complex products or service costs

  • Understand and manage the impact to the total cost of ownership (TCO) and revenues of products or services following a change in scenario
  • Create accurate what if “budgets” that can be explained
  • Show how revenue or spend on products or services will be impacted over time

Business Units

Has an incomplete view of allocated shared services costs

  • Be empowered to make smart decisions concerning the use of shared services
  • Understand and address inefficient usage of shared services
  • Receive a true profit margin for delivering services and products to market