Gartner Research

Four Keys to Effective Service Costing

Published: 19 October 2015

ID: G00289507

Analyst(s): Jim McGittigan , Robert Naegle


An effective, ongoing service-costing initiative requires more than a list of services for the business to choose among. CIOs and IT leaders must have a clear understanding of the initiative's purpose, as well as a cost model that allocates all relevant costs for products and services.

Table Of Contents
  • Key Challenges



  • Get Buy-In From the CIO and Key IT Leaders on the Purpose and Objective(s) of Service Costing
  • Define IT Services in Terms That the Client Can Understand in Order to Make the Right Choice
  • Understand Cost Modeling, Including the Process, Data and Decisions Needed to Allocate Costs to IT Services
  • Use the Service Cost Model to Provide the Needed Transparency to Achieve the Agreed-Upon Objectives

Gartner Recommended Reading

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.