IT Cost Transparency
Definition - What does IT Cost Transparency mean?
IT cost transparency is a branch of IT management that combines finance and management accounting principles with the acquisition, maintenance and deployment of IT products and services used by large and small organizations.
IT cost transparency factors include licensing costs, IT personnel/labor, asset management and project portfolio management (PPM).
Techopedia explains IT Cost Transparency
As businesses mature, many discover the need to keep proper track of IT-related expenses. This allows a business to plan its IT growth, allocate sufficient business component resources and identify and address areas requiring improvement.
IT cost transparency is often implemented through a specialized tool that measures multiple factors, such as software utilization, cost upon purchase and return on investment (ROI). Individuals that execute IT cost transparency processes should have a thorough understanding of accounting or business management.