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Directory of ITSM. ITIL Financial Management |
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IT Financial Management is the discipline of ensuring IT infrastructure is obtained at the most effective price (which does not necessarily mean cheapest), and calculating the cost of providing IT services so that an organisation can understand the costs of its IT services. These costs may then be recovered from the Customer of the service.
Costs are divided into costing units:
- Equipment
- Software
- Organisation (staff, overtime)
- Accommodation
- Transfer (costs of 3rd party service providers)
The costs are divided into Direct and Indirect costs, and can be Capital or Ongoing.
See the ITIL Toolkit for more information on Financial Management.
IT Financial Management and IT Security
The practice of IT financial management enables the Service Manager to identify the amount being spent on security counter measures in the provision of the IT services. The amount being spent on these counter measures needs to be balanced with the risks and the potential losses that the service could incur as identified during a Business Impact Assessment and Risk Assessment. Management of these costs will ultimately reflect on the cost of providing the IT services, and potentially what is charged in the recovery of those costs.
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