Gartner Research

Four Keys to Effective Service Costing

Published: 19 October 2015

ID: G00289507

Analyst(s): Jim McGittigan, Robert Naegle

Summary

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

Introduction

Analysis

  • 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

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