IT services charge back model, templates

[Steven Burke]

I'm looking for chargeback model templates within the CSDM to evaluate the onboarding of new internal customers with associated project costs.

Use Case/Scenario:

• What will be the business unit’s TCO expenses for using ITSM workflows for [X] users? 
• What will be the business unit’s TCO expenses for using 2 or more Service Now modules such as ITSM and VRM for their workflows for [ X ] users?
• The TCO is to include licenses, Development and O&M expenses.

Have not decided on which of the 4 chargeback methods you use however, leaning toward fixed charge or variable based upon usage to start.

Chargeback Methods
1)  No charge, 2) A fixed charge, 3) Variable charge based on resource usage, 4) Variable charge based on volume.

This will set expectations on attributing costs in the initiation and planning stages.

Thank you in advance.

[timothy_j_o]

Steven where you able to make any headway on this topic?   Looking at a similar approach. 

[Carter1]

I know it's been a little over a year since the original post - but figured I'd throw in my thoughts here for what they're worth.

I think a hybrid approach of #2 - Fixed Charge and #3 - Variable Charge based on usage tend to work the best. Usage based charging paints a more accurate picture and encourages accountability - there's now an incentive for consumers to reduce unnecessary consumption. 

But certain items might make sense to charge back with a fixed rate - things like email, network access, shared facilities, or IT administrative functions. These are things where usage is typically standard across consumers, regardless of how much they use it. 

Or perhaps you don't have good consumption data available, in which case Fixed could make sense.

If you're looking for ways to do this in ServiceNow, you should check out the Proven Optics Cost Modeling and the Proven Optics Billing & IT Recovery applications on the ServiceNow Store.

With the Cost Modeling application, you can model the Total Cost of Ownership of services, applications, or other elements. The Billing application allows you to define the variable or fixed rates and systemically generate invoices to facilitate the chargeback to consumers. Happy to share more information if you're interested.