IT Cost Transparency

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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.

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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.

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Margaret Rouse
Technology Expert
Margaret Rouse
Technology Expert

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.