The larger the organization, the greater the pressure on IT.
Business expects and demands transparency over IT costs. Where cost allocation (chargeback in some companies) is being applied, Business Units are often skeptical about the fairness of IT costs they bear and so apply the blow torch to IT. For IT to be able to respond with accurate information that shows the Business Unit they are paying for what they use and not subsidizing other areas is a goal worth striving for.
In some companies, Business Units must report along segmented lines for regulatory purposes. The impact on IT and other internal Service Support
units is the need to accurately align their costs to the Business Units for auditing and reporting purposes, where failure to do so has significant financial penalty and reputational consequences.
Other pressures on IT come where business applies draconian cost reduction targets to IT as the only way they feel they can meaningfully influence those costs. With our demand driven cost budgeting methodology and ClearCost, we provide both IT and the Business with improved understanding and levers to more sensibly and effectively control the IT costs.
Our methods and experience have been successful in assisting IT groups ranging in size from 100 to 3,000 staff. Our own backgrounds in large enterprise banking and finance, legal and corporate provide added experience to draw on – we understand the space.
Of course, we have worked with IT groups where staff counts we less than 100. What stands true for those is that they have most of the requirements and pressures of their larger colleagues, just with fewer staff and a lesser budget. Our methodology is able to scale to suit the organization.
The final factors that we take into account in planning and implementing an effective solution for our large enterprise clients are service maturity, financial drivers and politics. We have encountered many variations on these and are able to ensure an appropriate solution is designed to address
these important yet less obvious key success factors. |
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Onesteel
“the implementation of Clearcost ... enabled us to provide clarity to our internal
customers around the services they received and at what cost they received them so that the true value proposition could be determined.” |
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Lend Lease Global Data Center (USA)
“...you go from presenting cost in the linear traditional financial summary view to a more products/services view that clearly demonstrates
the IT group’s value add to the organization. Beyond how the cost is presented, manage- ment has the added benefit of an alternative view to manage their area.” |
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Wrigleys
“the ClearCost tool is only half the story though.. setting up the information and learning how to best use it is crucial too ...the icing on the cake is their advice on pros, cons and best practice along the way” |
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Rabobank International Asia Region
“ClearCost ...provides the IT cost transparency our business is looking for and allows for more insight into association of costs and services across the region.” |
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