There are several industry reports available to compare your technology costs to that of industry peers – while these reports give you some top down validation, it is still a challenge to validate individual cost elements and assess value on a continuous basis
Further justification of technology costs to business stakeholders is also a challenge due to lack of use of standardised metrics for cost sources. We support mitigation of these issues with a structured set of activities ensuring seamless technology costs management
We start with cost metrics standardisation with application of the TBM (Technology Business Management) taxonomy ensuring any bench marking or presentation of costs is based on standardised metrics
Based on the scale of the technology costs, we will implement an ITFM (IT Finance Management) tool which will automate consumption of technology costs from various sources (including vendor bills & general ledgers) and modelling and reporting of these costs
We then bench mark technology costs based on data from various sources including our own industry expertise. The bench marking will be done at a detailed costs element level aligning to the TBM taxonomy. We will also provide technology cost comparison with industry peers locally and internationally
To provide transparency to the business on technology costs, we implement a cost allocation model through the ITFM tool that relies on more than just number of users to allocate technology costs to the business
Finally, we develop reports and dashboards that measure KPIs, provide meaningful insights and help you effectively manage technology costs