Reinventing How IT Gets Funded

http://www.cio.com/article/2421759/business-analytics/new-model-reinvents-how-it-gets-funded.html

Instead of having a chargeback model for organizations with IT as Engine Room, do you think it is better for all organizations not in the IT is the Business or Everyone’s IT spectrum to move towards the IT as Global Service Provider that the article suggests?

The CIO Executive Board believes that the best model is the one where IT operations are broken into 12 to 24 business services and assigning costs to each one. This is very similar to how IT as Global Service Provider works as it offers a limited menu of services and avoids the tedious line item cost accounting that chargebacks require. Additionally, instead of using IT terms, the IT department would use business terms so there is no confusion on the part of the business units. The business units may not understand what it means when IT tells them they’ve used X amount of network bandwidth, but they will understand when they’re billed for videoconferencing.

Another question I have relates to IT as Global Service Provider. We’ve discussed this IT structure at length but has anyone worked at a company that’s actually modeled this way? If so, how was it?