Measuring Cost IT Services

Measuring Cost IT Services

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In these days of economic downturn, visibility into IT Operational costs has become increasingly important for Enterprises due to the proliferation of IT into their Business. This visibility is essential in order to establish control over the ever increasing IT expenses, caused by unchecked IT sprawl. Also, understanding the cost of IT, at the point of delivery, lays the foundation for many key themes of today – like Service valuation, Green IT, economic analysis of IT projects etc. This whitepaper proposes a cost accounting oriented approach to allocate a cost to an Application based on the premise that Applications are the IT face to Business, and use the Application Cost as a basis to derive the cost of IT delivery to Business.

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