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Workshop IT Service costing

Fifteen attendees from Slovakia and Czech Republic arrived to the third workshop prepared for OMNICOM customers at Bratislava. The goal was to analyse the possibilities of IT service costing models, including the identification of used principles and rules. The necessary co-operation between the organization divisions was the point of discussion, too. 

The modern IT provider should not only prove  its ability to „keep IT systems alive“ but also to clearly show, how the costs paid by customer contributes to his business gain. Provider should also prove that the costs were used in effective way, that they are under the providers control and how they help to manage IT services. 

The first part, focused on realization the IT service costing model best practices, was led by Pavol Holbík from OMNICOM. The attendees step by step analysed the possible rules how to align the IT costs to the business units using the conduit financial company. They started with the old fashioned models like align the IT costs based to the IT infrastructure or number of users. Later on they move to the standard (but more complex to design) model, where costs are aligned to the business departments. The most discussed topices were:

    • The need of working Service catalogue (based on ITIL®) and Service SLAs
    • Burden centres and allocation keys
    • How to cope with fix/variable costs?
    • The difference between Charging a Cost allocation
    • How to include the developing projects in IT service costs?
    • How to cover the IT services that IT provide to itself? :-)
    • How the virtualization, cloud, IaaS, outsoursing, SaaS affect the cost models?
    • IT as a Cost centrum or Profit centrum?

The second part of the workshop started Mr. Michal Piecka, CFO at E.ON Business Services Slovakia with a Case Study. This company is specific in the way that the IT infrastructure is outsourced to the external partner. The IT department still manages the application support, licence management etc. Continual interesting discussions were a natural part of this presentation. The main topics and questions were as follows::

    • Does the outsourcing have a negative impact to the quality of IT services provided?
    • How the costs are aligned to IT services for business in the case of applications?
    • Which methods are different (or the same) comparing to methods for IT costing in the first part of our workshop?

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We have finished this workshop with a lunch, served directly at NIKAR training centre, where the workshop also happened.

We have identified following conclusions during the workshop::

    1. IT Service costing models lead to the better transparency for business.
    2. It is just a question of time when Costing model will take it´s place, if the provider is already focused on services.
    3. The support and interest from business side are essential for successful Costing model
    4. The ability of cost management (based on the cost model) depends on the co-ordination with other departments inside the company (Accounting, Controlling, HR, etc.)
    5. Sometimes it is really a challenge
    6. it is not easy!
    7. The reasonable degree of detail is needed - sometimes the high accuracy will not deliver the added value expected

This workshop belongs to the series of venues, which are entitled as a free bonus for OMNICOM customers and partners. 

If you found this workshop interesting we can prepare a similar inhouse workshop tailored for your needs. In this case please be so kind and let us know by sending your request to sales@omnicom.sk and we will contact you.


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