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IT Cost Transparency

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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