Executive Summary (This is a document excerpt)

One of the key methods for obtaining more value from IT is to provide increased cost transparency to IT customers/users. This cost transparency, coupled with line-item invoicing, permits business managers to make informed, fact-based decisions about their use of IT resources, the key to demand management. However, IT chargeback implementation at many firms falls short of this ideal or is simply not done at all. In fact, only about half of IT shops have adopted IT chargeback processes. The good news? Many of the mature shops that do have a chargeback process have had it in place for several years and have reaped significant benefits. To join the group of "chargeback haves," be sure to adopt proven best practices like implementing a service catalog and working with finance to develop a cost allocation model consistent with usage and/or consumption.

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