How Much Does IT Cost?: A Practical Approach to Costing in Information Technology Shared Services Units

To develop a deeper understanding of how and why IT costs are incurred and provide a firm basis for cross charging, many shared services units are using activity-based costing (ABC). Not only does this provide detailed information to business units about their consumption of central resources, it also provides a common understanding for reducing shared services costs. This White Paper examines the role of ABC in Shared Services Costing and concludes with two case studies to illustrate how organizations have adopted ABC to successfully manage Shared Services Costing.