Bill Fowler
Bill Fowler

“Running IT like a business” is an idea that has been around for years. With the increasing integration of technology into the business, the expectations of how IT is managed are rising. In order to meet those expectations, IT management must understand their true cost of IT.

No surprises here – isn’t this the basis for running a business? Why, then, is it such a challenge? Here are the typical reasons why:

  • Many IT leaders make the mistake of treating IT costs as an annual budget exercise.
  • Too often, costs land in a particular budget for convenience more than logic. And costs, on their own, are of limited use for purposes of managing a service.

How can you begin to face this challenge? The first step in “running IT like a business” must be to align costs with the services provided.

  • Understanding the component costs of these services – server hardware, server management, service desk, desktop support, etc. – is necessary in order to build a reasonably accurate service cost.
  • It is important to understand that “the Business” has a fairly simplistic view of IT services; Applications, Service Desk, Collaboration capabilities (video conferencing, web conferencing, etc.), etc. Effectively describing what is in a service as well as the drivers of cost in that service is necessary for success in any business. IT is no different.

In order to remain relevant, the IT organization must begin paying more than simple lip service to the idea of “running IT like a business”. This begins with an understanding of its costs of services provided.

To learn more about what Wavestone US can do for your company, visit http://www.wavestone.us/capabilities/.


Bill Fowler
Managing Principal

Bill Fowler has designed and led large complex consulting engagements for Fortune 500 clients and has worked on some of the world’s largest outsourcing agreements. He is committed to helping clients develop effective, sustainable sourcing solutions that align with their strategic and operational objectives.

How to Keep Your Digital Transformation on Track to Meet Business Outcomes

Dec 08, 2022

Executing successful digital business transformation can be a daunting prospect. An unoptimized approach risks impairing transformation efforts. Focusing on priority areas that need serious attention can mitigate such risks.

Struggling with Digital Transformation? A ‘Transformation Journey’ Team Can Put You Back on Track

Dec 01, 2022

Traditional change management models are no longer viable in a modern, constantly shifting business landscape. A new “transformation journey team” approach is needed for effective transformation.

Have a Question? Just Ask


Whether you're looking for practical advice or just plain curious, our experienced principals are here to help. Check back weekly as we publish the most interesting questions and answers right here.

Ask Wavestone