Technology Costings is a means to an end. It is meant to achieve a business objective typically driven by either the Finance or IT departments.

A consumption-based Technology Cost Model is complex with many tiers of cost allocation. In comparison, Cost Allocation Models for other departments such as Legal, HR, is far simpler as it doesn’t involve IT Infrastructure. What further complicates matters is that Global Operating Models are quite complex as firms typically centralise their back-of- fice technology infrastructure – driven by regulatory and tax reasons, to generate economies of scale across multiple revenue lines. This makes the LE structure quite complex as LEs may or may not be domiciled in the same location as that of the LEs providing the services. To make matters worse, the data and infrastructure ecosystem of organisations is constantly evolving. This results in changes to the data environment that has implications on IT Costings.