business strategy

Three Common Benefits of IT Chargeback


This week we’ve had discussions centered on funding, costing, pricing and chargeback. The one that particular drew my attention the most is chargeback. In the article that I stumbled upon, it explains that chargeback “is a strategy deployed where departments get an internal bill (or “cross charge”) for the costs that are directly associated to the IT Service usage” and some of the common benefits of chargeback. The three common benefits of chargeback that are mentioned in the article are:

  1. Business departments are held responsible for the usage they incur
  2. Serves as a visual reference as to the reasons why certain services cost a particular price
  3. Helps IT properly respond to customer demand by knowing if there needs to be an additional charge for services needed

What are some of the other benefit of utilizing a chargeback strategy? What type of business model does a chargeback strategy most suite and why?

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