The consequences of failing to implement IT business
performance management methods, such as ABC/M and
KPI scorecard metrics, are often hidden, yet they are substantial.
Without performance management methods, IT
fights to control its budget, can’t maximize its return on
investment, suffers from increased complexity and cost,
and is unable to make sustainable cost reductions. The
result is that organizations make decisions to implement
infrastructure or outsource capabilities with inadequate
service cost information that doesn’t support strategic
goals or may even impact them negatively with suboptimal
results. Outsourcers prey on IT organizations that
don’t know their costs, especially those that don’t understand
the fixed and variable nature of costs