Tracking the IT cost for a business or organization
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IT cost transparency is a category of information technology management software and systems that enables enterprise IT organizations to model and track the total cost to deliver and maintain the IT Services they provide to the business. It is increasingly a task of management accounting. IT cost transparency solutions can integrate financial information such as labor costs, software licensing costs, hardware acquisition and depreciation, data center facilities charges from general ledger systems and combine this with operational data from ticketing, monitoring, asset management and project portfolio management systems to provide a single, integrated view of IT costs by service, department, GL line item and project. In addition to tracking cost elements, IT cost transparency may track utilization, usage and operational performance metrics in order to provide a measure of value or return on investment (ROI). Costs, budgets, performance metrics and changes to data points are tracked over time to identify trends and the impact of changes to underlying cost drivers in order to help managers address the key drivers in escalating IT costs and improve planning.
IT cost transparency combines elements of activity based costing, business intelligence, operational monitoring and performance dashboards. It provides the system on which to implement ITIL v3 Financial Management guidelines to assist with Financial Management for IT services and is closely related to IT Service Management.
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