Financial Management is an important element of IT Service Management. It gives essential management information, which ensure
cost-effective providing of services.
One of the objectives was to change over from budget-based organizations with fixed budgets to cost-conscious businesslike
organizations.
IT organisations, which have implemented Financial Management are able to:
* calculate the cost of providing IT services
* establish the cost composition and categorise the costs
* assign costs to IT services provided to both internal and external Customers
* implement charging policies for using IT services
* operate the department as a Business Unit
* recover the costs including capital costs (investments, depreciations, interest, etc.) of the IT services from the customers
of the service
* proper information concerning costs related to the provided IT services