The untapped potential of it chargeback

Abstract

The received wisdom on IT chargeback is that a chargeback system with certain key characteristics, such as usage-based charges, stable rates, understandable bills, and so forth, will help firms make effective decisions on IT investment and use. Eccles′ model of transfer pricing provides a theoretical framework for this claim, and it also explains why chargeback systems can raise issues of fairness or create conflict between IT and its clients, as the IT literature has pointed out. Applying Eccles′ model, this paper reports on a study of 10 organizations′ IT chargeback systems and their impacts on business managers′ economic decisions and on evaluations of IT and business unit performance. Re..