| Our client, a major australian financial services organisation, was having trouble tracking infrastructure assets and the costs associated with these assets.
IT costs were allocated based on a combination of inflation uplifts to historical allocations, negotiations and allocation metrics e.g., FTEs. This approach led to a poor accountability for costs and cross subsidisation.
The fixed asset ledger could never be reconciled to actual asset locations and cost centres which was a cause of concern for Internal Audit.
IT kept issuing standards irrespective of business unit need leading to tension between IT, procurement and business units. Business Unit demands were driving significant infrastructure cost however Business Unit’s did not have the data enabling them to manage this.
Assets were not being leveraged effectively across the group (e.g. the ratio of desktops to FTE was 1.3:1) with many being out of sight (in cupboards) still driving software license costs.
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