Business managers resent IT costs

News Analysis

Business managers resent IT costs

Business managers still don’t fully grasp the idea of centralised IT shared service centres and want to treat IT resources like an all-you-can-eat free buffet.

Half of business unit managers believe the amount that shared service IT centres charge is unfair, according to a survey by ALG Software, even though the majority of them believe centralised IT is a good idea.

Judging by the number of complaints and calls for cost reduction they receive, just 45% of the IT directors and managers surveyed reckon that business heads see IT cross-charging as accurate.

“There is work for the IT directors to do to give clarity and visibility into how much IT resource is being consumed by each department,” says ALG Software chief executive Mike Sherratt.

Part of this discord is because only 55% of the respondents have an official process for calculating these charges and 64% use simple spreadsheets to make those estimates.

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