Home Technology Business Advisory Overview Chargeback Service Catalog

Chargeback Service Catalog

Swingtide’s chargeback service catalog is a guide in business terms that describes the services your IT department delivers to internal customers. The catalog has similar specificity and rigor as an external outsourcing agreement. In effect, the chargeback service catalog is the pricing menu and statement of work for the IT department’s contract with its customers. This methodology-based offering enables demand management, operational optimization, and tax transfer pricing by setting the rules of engagement between business units and IT. It enables customer alignment and creates a language that puts your internal customers in control of the IT support that is delivered. The approach balances administrative costs of implementation with real business benefits received. This offering can be implemented separately or in the context of service management.

Ideal for Companies

  • Wishing to implement a shared services structure
  • Improving IT alignment with business
  • Seeking cost transparency and a fair cost allocation
  • Reducing or redirecting IT spend to higher business value
  • Confronting transfer pricing tax issues
  • Divesting or acquiring businesses
  • Assessing the efficiency of IT operations

Key Benefits

  • Align costs with consumption, enabling better user decisions (demand management) and business analysis (such as product or business unit profitability)
  • Focus resources on activities valued by businesses and eliminate wasted spend
  • Enable more standardized solutions and economies of scale; identifies the true costs of the lack of standardization
  • Establish processes and measurements to assist in prioritizing activities, benchmarking, and managing and sustaining improvement activities
  • Improve IT’s contribution to overall business profitability (whether service delivery is internal or external)

High Level Approach & Deliverables

  • We start by collecting requirements and establishing the future state for:
    • Services delivered
    • Charging metrics
    • Tools (for reporting and capturing consumption)
    • Roles (e.g., service manager, billing specialist, etc.)
    • Processes (e.g., forecasting, rate setting, etc.)
    • Transfer pricing agreements
  • Then, we discover your current state and perform a gap analysis
  • Last, we implement all the elements of the solution and develop a roadmap for future improvements
  • The result: new roles, processes, an implemented chargeback service catalog, and all the necessary tools in place to chargeback all IT costs

The Swingtide sample chargeback service catalog provides examples of catalog pages using the Swingtide methodology.

Technology Business Advisory Overview

ISSUES, LESSONS & TIPS

There’s no magic — understand how you get from current to future state

Most outsourcing deals describe a future state but don’t clearly explain how to get there. Include a detailed transition and transformation plan in all contracts.

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