Changing IT demands a new funding system

01/5/2010 | Computerworld

A revised funding model is needed for IT services, since neither "chargeback" systems, based on a client's use of IT services, nor predetermined lump-sum payments will continue to be viable arrangements, according CIO Executive Board. It would be better to create 12 to 24 service divisions, such as videoconferencing or desktop support, with separate costs for each, the group suggests. "This model requires something revolutionary: integrating the work of the IT shop's separate applications and infrastructure groups into combined business services," Mitch Betts writes.

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