This presentation discusses internal service cost allocation -what is cost allocation? what are the objectives of cost allocation? how to perform cost allocation using a framework and process?
This presentation discusses the key pricing strategies used by companies to create competitive advantage and realize business value. Although not directly related to IT pricing – as IT is an internal function not an independent business – it has lessons that can be applied to pricing IT services. Good read in any event.
The authors make a case for value driven pricing for professional services first analyzing the costs of ineffective pricing and then the key elelments of a profitable pricing strategy for professional services. The paper also introduces a framework for pricing professional services. Can an IT Organization act as a business by using professional services firms as a model? Can this framework for pricing be used for IT products and services?