Best Practice Report

Keep An Eye On All IT Costs

Do You Know Your IT Cost Of Goods Sold?

June 17th, 2009
Simon Yates, null
Simon Yates

Summary

Understanding your IT cost of goods sold can lead to a more agile and competitive organization. Cost of goods sold (COGS) includes the variable and fixed costs — for example, materials and labor — directly linked to the product or service. The key to knowing your COGS is keeping finances within IT transparent, splitting out IT costs by activity (i.e., general and administration versus COGS), but charging back all IT expenses at the service level based on consumption by the customer. IT costs come at you in many forms, yet they all must be accounted for in the same way, hence the need for CIOs to push for this transparency.

Want to read the full report?

Contact us to become a client

This report is available for individual purchase ($1495).

Forrester helps business and technology leaders use customer obsession to accelerate growth. That means empowering you to put the customer at the center of everything you do: your leadership strategy, and operations. Becoming a customer-obsessed organization requires change — it requires being bold. We give business and technology leaders the confidence to put bold into action, shaping and guiding how to navigate today's unprecedented change in order to succeed.