IT financial management is an integral component of the service management process framework. The claim of being able to deliver IT services at economic terms and conditions requires a transparent view of costs for all processes in the service organization. Financial management can serve as a strategic tool for all three service provider types – whether internal, external and shared service provider. The value of the IT services and the value of the underlying assets are evaluated with the help of financial management.

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Financial management determines all planned and accumulated costs of the IT organization on the basis of direct and indirect costs. This creates objectivity for the discussion with the customer and therefore a basis for a balanced price/performance ratio. Financial management creates a solid foundation for investment decisions. The breakdown into direct and indirect costs increases cost awareness. The customer takes a more cost conscious approach to the consumption of the service and so helps to boost the efficiency of the IT services on a targeted basis.