What Exactly Am I Paying For? Why Financial Transparency Matters in I.T.

-by Steve O’Connor, General Manager for IT Business Management, BMC Software

 

What do your IT services cost? If you subscribe to a cable TV service, you know that you can order services based on different package offerings. If you order services outside of your basic package, you pay extra. The monthly bill typically outlines the package and any extra services that you ordered, such as a special sporting event or pay-per-view movies. If the service provider’s statement provided only a one-line total cost, without itemizing each extra expense, you wouldn’t know exactly what you were being charged for. And you might well question whether the charges were fair.

 

Similarly, your business counterparts want to know what IT services they are paying for and how much each service costs. For example, the sales executives don’t want a quarterly lump sum expense that reads, “IT services: $8 million.” They want to know how much they are paying for smart phones, desktops, and laptops, as well as for the support of these devices. They also want to know the expense of operating and maintaining the sales automation application and any other services that IT is providing.

 

Financial transparency means that you understand the costs IT incurs in providing each specific service to the business and that you can communicate those costs in a language the business understands. Many IT organizations are not able to provide this level of financial transparency, but it’s more critical now than ever before.

 

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