Recharging the IT Budget Chargeback Debate

December, 2007


The heated debate over chargeback practices has become muffled over the last few years as IT spending recovered from the downturn in the early part of the decade. But when pressure mounts on CIOs once again to more firmly restrain IT budgets, arguments over who should own the costs–the business units or the central IT organization–is likely to re-emerge. This article assesses the current state of IT budget chargeback practices, based on a special survey conducted by Computer Economics of IT managers. It outlines which IT budget line items are typically charged back to business units and how much of the IT budget is usually recovered in such fashion. We conclude with recommendations for IT managers considering cost allocation strategies for the future. (4 pp., 3 figs.)
[Executive Summary]