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Financial Management for IT Services
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Written by Philip L Yuson   

Objective

  • Provide IT services at a reasonable cost:
    • Support business in planning and realizing its business objectives
    • Ensure that IT spending is reasonable
    • Minimize financial risks in management decisions

Functions of Financial Management for IT Services

  • Cost Control develops an investment strategy to identify priorities in the use of resources. It covers all IT resources.
  • Management Reporting conducts cost/benefit analysis of IT resources by department. It also plans for future investments and looks at opportunities for cost reduction.

Factors for Delivering IT Services at Reasonable Cost

Factors for Delivering IT Services,quality,cost,customer requirements
  • Quality involves
    • capacity
    • availability
    • performance
    • disaster recovery
    • support
  • Cost is concerned with
    • expenditures
    • investment
  • Customer requirements
    • determine the cost and quality of the service

Financial Management for IT Services Activities

Financial Management for IT Services Activities
 
  • Budgeting aims to predict costs and define financial plans for objectives
  • Accounting monitors how money is spent. It understands issues more than the cost of each service. Cost elements are also defined.
    • Cost types include:
      • Materials are hardware and software costs
      • Labour covers personnel costs like salaries, training and travel costs
      • Overhead costs that are related to the financial activities, housing and internal charges between departments
  • Charging involves billing clients for services provided. It encourages efficient use of IT resources by users.
    • Defines charging policies and determine the rate
 
Copyright: © 2017 Philip Yuson