Few IT Organizations Make Users Pay

December, 2007

(IRVINE, Calif.) Despite the heated debate over chargeback practices in the earlier part of the decade, 42% of companies still do not charge back any portion of their IT budgets and less than a quarter engage in aggressive chargeback practices, according to a Computer Economics survey of IT managers.

The survey, conducted in October, included responses from 94 IT managers of enterprises and governmental agencies with annual revenues between $30 million and $100 billion. All of the respondents were either top executives or finance managers for central IT organizations.

The survey further found that while companies commonly allocate desktops and long-distance phone charges to business units, fewer companies attempt to charge back personnel time spent on projects or on-going maintenance.

Computer Economics believes cost allocation is likely to re-emerge as an important topic over the next few years as companies adopt on-demand, service-oriented architectures. These new forms of application deployment will complicate traditional chargeback strategies while encouraging usage-based and subscription-based schemes.

The full report, Recharging the IT Budget Chargeback Debate, analyzes the current state of IT budget chargeback practices, outlines which IT budget line items are typically charged back to business units, and assesses how much of the IT budget is usually recovered in such fashion. It is available at no charge to Computer Economics clients, or may be purchased at https://avasant.com/research/computereconomics.

Computer Economics is an IT research and advisory firm that provides critical data to enable informed budgetary and technology adoption decisions. The company’s IT Spending, Staffing, and Technology Trends study, published annually since 1990, is the definitive source of IT spending data, staffing benchmarks, technology trends, and related metrics across multiple industries and government sectors.