Sample Information Technology Chargeback Service Catalog

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Sample Information Technology

Chargeback Service Catalog

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SAMPLE IT CHARGEBACK SERVICE

CATALOG

Introduction

This document is a sample IT Chargeback Service Catalog produced using the Swingtide methodology. It is intended to illustrate the structure of a Swingtide IT Chargeback Service Catalog at a high level, with examples provided for some sections and services.

Some organizations prefer that their services be described technically (see the sample catalog entry for Unix application hosting on pp. 8-9, for example), while others prefer more fully loaded, transaction-based services (such as the description of the general ledger service on page 7). Describing services technically is the appropriate choice for organizations in which IT functions are distributed across business units. In such organizations the customer is often an IT expert who, because he or she is conversant with the technical issues surrounding the service being provided, usually prefers detailed technical descriptions and is able to use them to help manage business unit demand and set service expectations within the consuming entity.

Organizations in which IT is entirely centralized sell their services directly to business customers, not to other IT professionals. Business customers generally prefer that IT services be described in a way that is understandable to them, without technical detail that does not contribute to their ability to plan costs and usage. The controlling principle here, as in so many other areas of business, is to view the process from the customer’s point of view and frame the transaction in a way that he or she can understand and validate.

The typical IT department will offer from twenty to sixty services, depending upon the complexity of infrastructure, the desire for granularity, and the diversity of customer.

Some of the following sample entries include “delta” sections to illustrate the kinds of year-to-year updates that are typically made within an IT department that has used an Chargeback Service Catalog for more than a year. As an Chargeback Service Catalog matures, descriptions of services become more precise and detailed. Some of the sample service descriptions you see here may reflect a Year Two or greater maturity level.

The Chargeback Service Catalog serves as the foundation for cost and service transparency. It delivers clear, coherent, and equitable chargeback (used for management reporting, demand management, and tax transfer pricing) and sets internal customers’ expectations, both service and process, to alleviate confusion and improve service.

We believe that our Chargeback Service Catalog methodology is unsurpassed, and we look forward to discussing its applicability to your organization. In these initial discussions you may discover many additional unexpected benefits.

For those who aspire to run IT as a business, and who understand the implications of failing to do so, an Chargeback Service Catalog is simply indispensable.

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Sample Chargeback Service Catalog Table of Contents

Service Type Descriptions ... 4

Service Mapping 20YY (previous year) to 20XX ... 5

Services Remaining the Same ... 5

Services Combined or Split ... 5

Services Closed ... 5

New Services ... 5

Sample IT Department Services Summary ... 6

Sample Rate-based Service Descriptions (Complex) ... 7

Sample Rate-based Service Descriptions (Simple) ... 10

Sample Consulting Service Description ... 13

Sample Pass-through Service Description ... 14

Sample Products Appendix (Appendix 1) ... 15

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Information Technology Department

20XX

Chargeback Service Catalog

Following are IT’s XX services for 20XX. Generally, they are consistent with the services offered in 20YY (the previous year). The attached mapping identifies the 20YY Service Name and the corresponding 20XX Service Name and highlights those that have been combined, eliminated or added.

Service Type Descriptions

Rate-Based Service A service where the cost pool is composed of IT staff, depreciation, third-party vendor charges, and IT overhead (e.g., facilities, human resources, and finance). These services lend themselves to being charged by a consumption-based usage unit, which represents a cost driver for the service. Each service or service tier is delivered uniformly (common service delivery, features, and functions) to every customer. Consulting Service A service where the cost pool is composed of IT staff, staff-related

costs, and IT overhead (e.g., facilities, human resources, and finance). These services are billed based on actual time spent (hourly, daily, or monthly) by the staff on the specified work. Consulting and Rate-Based Services represent mutually exclusive work.

Pass-Through Service A service with a cost pool that is composed primarily of vendor invoices or depreciation with no markup for IT staff or administration. Actual usage or invoicing will drive the charging of pass-through services.

Each service includes a Billing and Administrative Guidelines Section, which should help in understanding how a service is initiated, charged, or discontinued. The Service Expectation, Minimum Charge, Minimum Increment and Co-requisite Services are also highlighted. Budgeting Guidelines are also provided. Questions can be directed to the service manager or billing contact identified on each page.

The services are offered as described on each page. Components of any service are not priced separately. Use of any portion of any service will result in payment of the full rate for that service. Any IT service can be initiated through your [insert work intake process or liaison information]. [If Customer Relationship Management Structure, see below for the CRM’s, their designated business area, and phone number.]

CUSTOMER RELATIONSHIP MANAGER BUSINESS AREA

CRM, Contact Information Business Areas or External Customers assigned to the CRM

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Service Mapping

20YY

(previous year) to

20XX

Services Remaining the Same

(Some name changes only)

20YY Service Number and Name 20XX – Service Number and Name

YY – Project Management Office XX – Project Management Consulting YY – Consulting Pass-Through XX – External Consultant Pass-Through YY – File and Print Servers XX – File and Print Servers

YY – Citrix/Terminal Servers XX – Citrix/Terminal Servers YY – Software Pass-Through XX – Software Pass-Through

Services Combined or Split

YY – Installation Services/Plaza and Field YY – Services Delivery Project Management & Deployment Engineering – Plaza and Field Part of YY – Procurement Services Consulting Part of YY – Media Consulting & Support

XX – Installation Services Consulting

YY – Finance Systems Consulting XX – Finance Systems Consulting XX – Corporate Systems Consulting

Services Closed

New Services

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Sample IT Department Services Summary

Service

Code # Service Service Manager

Cost Transfer

Method

Rate/ Budgeting Base

XX Citrix/Terminal Services Rate-based $X.XX / session hour XX Application Hosting Rate-based $X / gigabyte /

tier/month

XX Email Rate-based $X/mailbox/month

XX Laser Print Data Center Rate-based $0.0XX / printed side (image) XX Support of Dedicated Equipment Rate-based $XX/piece of equipment/month Etc.

XX Technical Consulting Consulting $XX / hour

XX Business Analysis

Consulting Consulting $XXX/month

XX Project Management Consulting $XX/day

XX Etc.

XX Voice Usage

Pass-through

Actual charges by extension

XX Software Pass-Through

Pass-through

Actual license and maintenance charges

XX Dedicated Equipment

Pass-through

Actual depreciation or lease expense Etc.

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Sample Rate-Based Service Description (Complex)

I. SERVICE: COMPANY LEDGER Service Code: 4011

Service Manager: Jim Smith Phone Number: (555) 555-5555

Billing Contact: Carl Ball Phone Number: (555) 555-5555

Service Usage Ledger Account: 6506122

Service Material/Pass-Through Ledger Account: N/A

Description of Service:

All maintenance and production activities required to support General Ledger processing for an individual legal entity as represented by a chart of accounts and company financial statements. Service is based per General Ledger system in a tiered approach based on number of transactions processes.

Small – Under 500 Transactions processed monthly

Medium – Between 500 and 5,000 transactions processed monthly Large – Over 5,000 transactions processed monthly.

Service Expectation:

- Full service normal business hours, on-call 7x24

Rate: Tiered

Small – $4,500 / month Medium – $7,300 / month Large – $15,600 / month

Minimum Charge: 1 System Minimum Increment: 1 System

Usage Unit:

General Ledger Transactions

Co-requisite Services: None

Cost Transfer Method: Purchased

Billing and Administrative Guidelines:

- Actual transaction counts from prior month will be billed in current month

- System Modifications including Enhancements and New Development are purchased using Service Product 6506018 Finance Systems Consulting

Additional Tasks and Vendor Charges Associated with this Service (not all inclusive):

- All maintenance and production support activities required to keep the General Ledger Module backend processing components in production.

- Machine and operations charges related to the running of the General Ledger backend process including Mainframe CPU processing charges, DASD storage, data center printing, Tape Backup, and Disaster Recovery charges. - Coordination with downstream systems for related changes

- Help Desk support and resolution charges for general ledger system

Tasks and Vendor Charges NOT Associated with this Service (not all inclusive):

- Other financial system modules such as accounts payable, accounts receivable, inventory, fixed assets, purchasing, and warehousing

- Charges for Workstation / Laptop, and Network Connectivity for system end users. - System Enhancement or System Development work - Included in service 6506018

Budgeting Guidelines:

Count the total number of legal entity general ledgers by number of transactions (small, medium, and large) based on prior years data.

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II. SERVICE: UNIX APPLICATION HOSTING Service Code: 6080

Service Manager: John Doe Phone Number: (555) 555-5555

Billing Contact: Jane Smith Phone Number: (555) 555-5555

UNIX application hosting maintenance and support Standard Tier

Provides the required infrastructure and support services for the long-term hosting of UNIX applications and databases

Testing Tier

Provides the required infrastructure and support services for the short term hosting of UNIX applications and databases. This service tier is intended to provide the UNIX infrastructure required for short duration

requirements of one to four weeks such as UAT, etc.

Archival Tier

Provides the required infrastructure and support services for the long-term hosting of a limited subset of read-only UNIX applications and databases. This service tier is intended to provide the UNIX infrastructure required for long term storage of static data requiring infrequent access with negligible performance requirements such as data retained for audit.

N-Copy Tier

Provides the required infrastructure and support services for the hosting of multiple copies of UNIX applications and databases on a single server. This service tier is intended to provide the UNIX

infrastructure required to maintain additional mirrored copies of data on a given server via products such as EMC Timefinder.

See Appendix 1 for supported products and versions. Service Expectation:

 Standard Tier - UNIX production environment availability target of 99.87%, except for scheduled outages

 Testing Tier - Full service normal business hours, or as scheduled. Testing Tier capacity to be provided on

a best effort basis Archival Tier

Full service normal business hours, or as scheduled N-Copy Tier

UNIX production environment availability target of 99.87%, except for scheduled outages

Rate: Std/Test = $150.00 Arch = $70.00

N-Tier = $110.00

Minimum Charge: 1 Gigabyte Minimum Increment: 1 Gigabyte

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Standard Tier

 A monthly snapshot of the allocated usable file system and database capacity is the basis for the distribution

of charges. Capacity maintained for the installation and use of the operating system is not customer billable.

 Applications on dedicated platforms will be charged for 100% of available data capacity configured on the

server. This excludes operating system capacity and includes overhead capacity such as database

import/export file systems, logging file systems, etc.

 Applications on shared platforms will be charged for 125% of allocated capacity. The additional 25% charge

is to cover shared overhead capacity such as database import/export file systems, logging file systems, etc.

 Service management staff to determine upon which UNIX servers an application will be hosted.

Testing Tier

 A weekly snapshot of the allocated usable file system and database capacity is the basis for the distribution

of charges. Capacity maintained for the installation and use of the operating system is not customer billable.

 Charges to be based upon a minimum of one week; partial weeks to be charged as full weeks.

 Applications will be charged for 100% of available data capacity configured on the server for the test period.

Archival Tier

Applications will be charged for 100% of available data capacity configured on the server for the Archival Tier. N-Copy Tier

 Applications will be charged for 100% of available data capacity configured on the server for the N-Copy Tier.

 Production application data charged at Standard Tier.

Additional Tasks and Vendor Charges Associated with this Service (not all-inclusive):

 UNIX Application Hosting includes the system engineering and administration services performed by the

UNIX Support group for non-customer-specific efforts.

 Engineering and administration services include the following for support of standard infrastructure

components: Solution engineering, Solution implementation, System administration, Capacity administration, Backup/recovery administration, Basic systems monitoring functions.

 Installation of scripting and compiler languages – usage assistance is not included.

 Operations support activities, such as Job Scheduling , Data Center Operations, etc. and the associated

costs are provided under this service, but the activity details are described in Appendix 2.

 Provision of hardware, software and related maintenance services for standard infrastructure components

and their associated depreciation, lease and expense costs.

 Service management staff to determine upon which UNIX servers an application will be hosted.

Archival Tier

 Hosting service limited to read-only, static data, low-utilization applications and distinct databases. The

service management staff to determine application suitability for tier utilization.

 Data storage may be implemented with single points of failure and non-redundant components, resulting in

extended outages for the replacement of failed components and possible restoration of data from backup media.

 Backup and recovery services limited to monthly images required for full system restoration.

Operations support activities and associated costs are provided under this service, but the activity details are described in Appendix 2.

 Provision of services for unique infrastructure support, support of significant capacity modifications, and

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Sample Rate-Based Service Descriptions (Simple)

III. SERVICE: PURCHASE ORDER SYSTEM

USAGE Service Code: 4115

Service Manager: Jim Smith Phone Number: (555) 555-5555

Billing Contact: Carl Ball Phone Number: (555) 555-5555

Electronic processing of an individual purchase order.

Service based on number of purchase orders processed to the financial systems. Service Expectation:

Rate: $0.075 Minimum Charge: 1 Purchase Order Minimum Increment: Purchase Order

Usage Unit: Purchase Order Co-requisite Services: None Cost Transfer Method: Purchased

- Charges are based per purchase order assigned a unique number and any purchase order adjustments with a unique number alpha suffix. - No exceptions

- Actual purchase order transactions count from the prior month will be billed in the current month - Charges are based on the XYZ database. Manual purchase orders are not included.

per general ledger system based on previous years actual transaction.

- System Modifications including Enhancements and New Development are purchased using Service Product 6506018 Finance Systems Consulting

- All maintenance and production support activities required to keep the backend processing components in production.

- Machine and operations charges related to the running of the General Ledger backend process including Mainframe CPU processing charges, DASD storage, data center printing, Tape Backup, and Disaster Recovery charges. - Coordination with downstream systems for related changes

- Help Desk support and resolution charges for purchase ordering system

- System Modifications including Enhancements and New Development are purchased using Service Product 6506018 Purchasing department staff.

- Charges for Workstation / Laptop, and Network Connectivity for system end users. - End user printing

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IV. SERVICE: CLAIMS SERVICE – CHECK

PROCESSED Service Code: 6024

Service Manager: Jane Smith Phone Number: (555) 555-5555

Billing Contact: Larry Jones Phone Number: (555) 555-5555

All maintenance and production support activities required to support the backend processing, including all claims posted to the financial systems via the following: TPA Process, First Claims Close, Second Claims Close, Deductible Processing Applications, CIMS Flat Files Processing, and Business Objects for CIMS Oracle.

Rate: $0.075 Minimum Charge: 1 Transaction Minimum Increment: 1 Claim Suffix

Usage Unit: Audit Transaction Co-requisite Services: None Cost Transfer Method: Purchased

 Charges are based per actual transaction on second close audit file - No exceptions

 Actual check count from the prior month will be billed in the current month

 Components of this service cannot be purchased separately.

 Use of any portion of the service will result in payment of the full rate

 All maintenance and production support activities required to keep the backend processing components in

production.

 Systems inquiries, System monitoring, System re-run & recoveries, Balancing and controls, Statutory

changes, Infrastructure changes, Vendor upgrades, Regression testing, IMPS processing, Disaster recovery

 Machine and operations charges related to the running of the Claims backend process including printing,

fiche, DASD, CPU, etc.

 Coordination with downstream systems for related changes

 Statutory changes up to 2 FTEs across Service 022, 023, and 024

Tasks and Vendor Charges NOT Associated with this Service (not all-inclusive):

 Charges for Claim Adjuster Desktop, Colossus, & Mira, CIMS Oracle database and the Corporate Systems

TPA systems -- Paid and performed by customer.

 Enhancement or development work -- Included in service 025

 Statutory changes greater than 2 FTEs across Services 022, 023, and 024

 This service is comparable to ITD service Claims Service -- Non Claim Database Usage (024)

 Estimate the total number of usage units you anticipate requiring of this service.

 This information is available in service ledger account 6506500 for your cost center. Look in the JV line

description for the service(s) mentioned above.

 Enter the estimated number of units as usage in the Service Usage Ledger Account of your budget

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V. SERVICE: LASER PRINT DATA CENTER Service Code: 6071

Service Manager: Larry Laser Phone Number: (555) 555-5555

Billing Contact: Susie Queue Phone Number: (555) 555-5555

 Includes production, operation and distribution of laser print at the Home Office Print Center

 Service Expectation:

 On-time report delivery 99.90% of the time based on annualy negotiated delivery times

 Class "I" production output in the output queues by 4:00 AM will be available in the distribution bins by 4:00

PM. Class "O" test output will be processed after production work is completed.

Special delivery and mailing agreements have been made between the Print Service manager and some application areas. These agreements are renegotiated annually with our current goal of meeting on-time delivery of these reports 99.90% on schedule.

Rate: $0.022 Minimum Charge: 1 Printed side (image)

Minimum Increment: 1 Printed side (image)

Usage Unit: Printed Side (Image) Co-requisite Services: 066 or 067 or

080 Cost Transfer Method: Purchased

 Print Services Manager contacts business customers in the 4th quarter for delivery times in the following

year, or at the time of new service initiation.

 Billings records are logged via System Management Facility (SMF) records and are read by the Cost

Recovery System monthly.

 Non-mainframe-generated print is billed through non-SMF records (e.g., UNIX and NT).

 This service is initiated by programmers writing reports and specifying appropriate Job Control Language

(JCL) parameters directing print output to data center laser printers.

 Components of this service cannot be purchased separately. Use of any portion of the service will result in

payment of the full rate.

 All output will be on cut sheet paper

 Maintenance – Xerox Operating System Software & Resource Management

 Hardware and software management

 Production Support – Problem-solving production jobs

 Facilities Planning – Equipment installs or restacks

 Equipment Planning – Based upon capacity or SBU Functional Requirements

 Technical Planning – R&D in support of SBU requirements or long term needs

 Performance Management – Monitor applications to ensure maximum printer throughput

 Capacity Management – Monitor print window and needs capacity

 Operations – Includes set-up, printing and distribution of output

 Scheduling

 Limited technical consulting – Product Support

 Operations support activities and associated costs are provided under this service but the activity details are

described in Appendix 2.

 Maintenance for hardware, software, consumables, 20 lb. plain-white standard paper.

 Charges for Data Center CPU, DASD, or Tape – Included in ITD Service codes 066 or 067, 77, 78.

 DocuMerge Support – Provide consultative support for electronic document creation and packaging -

Included in ITD Service Code 036.

 Electronic Form/Font Support – Consulting with developer/outsource vendor on format & turnaround

requirements – Included in ITD Service Codes 36 and 99.

 Consulting services to support new or modified applications or forms – Included in ITD Service Codes 36

and 99.

 Purchase, storage and shipment of forms and supplies – Paid directly by customer.

 Special paper and forms – Paid directly by customer.

 External shipping charges for Business Units – Paid directly by business unit.

 External postage costs for printed material – Paid directly by customer, or included in service 076

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Sample Consulting Service Description

VI. SERVICE: SECURITY AND BRP/DRP CONSULTING

Service Code: 6002

Service Manager: Throckmorton P. Gildersleeve Phone Number: (555) 555-5555

Billing Contact: I.N. Veuss Phone Number: (555) 555-5555

 Providing review, advice, and support on IT security and business resumption/disaster recovery topics:

 IT Security Consulting – Applications, provide security consulting and review of products or applications to

ensure that those products and applications meet business requirements for security

 IT Security Consulting – Electronic Commerce, evaluate and provide technology expertise which allows the

companies’ businesses the ability to conduct secure electronic commerce

 IT Security Consulting – Business Resumption Planning (BRP), provide customer support for meeting the

audit committee requirements for maintaining recoverability

 Business Resumption Planning: Overall oversight with the SBU’s on BRP. BRP Plan

development/consulting and review for Home Office and Remote Sites. Maintaining and managing a central repository for BRP Plans. Identification of applications that qualify for BRP.

Full service normal business hours

Rate: $120.00 Minimum Charge: 1 Hour Minimum Increment: 1 Hour

Usage Unit: Hour Co-requisite Services: None Cost Transfer Method: Purchased

Consulting services must be pre-approved by the customer and the ITD Service Manager using a work authorization request (WAR) form before the work begins. All estimates/charges for consulting services will include management time to supervise and review the work being delivered, any specialized training required to complete the work requested, travel time, and all administrative time specific to the delivery of the work request. This administrative time includes the various meetings that may be involved in the delivery of a project or task. If travel is required to deliver the work requested, the travel expenses will be charged as a pass-through to the customer (Service 109).

If the customer and ITD agree that external consultants are required to deliver the requested work, these vendor invoices will be charged as an External Consultant Pass-through (Service 020) to the requesting customer with no mark-up. The management and administration associated with these external consultants will be charged through the hourly consulting service.

To request this service contact your Customer Relationship Manager (CRM).

IT Security Consulting and Engineering for Customer Driven Projects:

 Engineering of secure non-standard connectivity

 Testing and assessing security implementations or system integrity

 Research of best practice security standards for projects

 System reviews requested by a business which fall outside of the regular reviews performed under service

004

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Sample Pass-Through Service Description

VII. SERVICE: COST CENTER SPECIFIC TELECOM PASS-THROUGH

Service Code: 6045

Service Manager: Ernestine Tomlin Phone Number: (555) 555-5555

Billing Contact: Susie Queue Phone Number: (555) 555-5555

Service Usage Ledger Account: N/A

Service Material/Pass-Through Ledger Account: 6526045

Voice services specific to a cost center or business unit not provided in Home Office Basic Telecom Connect or Field Office Telecom Allocation pass-through. Includes:

 Conference calls (voice, data and video)

 Dedicated 800 service

 Pagers

 Home Office local and long distance usage

 Field Office Telephone equipment moves, adds, and changes

Refer to Appendix 1 for supported products.

N/A

Rate: N/A Minimum Charge: Actual Charges Minimum Increment: Actual Charges

Usage Unit: N/A Co-requisite Services: None Cost Transfer Method: Purchased

 Pass-throughs include vendor invoices only

 Charges are passed to the customer in the period in which the invoice is paid

 Charges may lag past vendor service termination based on the vendor billing cycle

 To initiate or terminate this service call 555-555-1234 and follow appropriate prompts

 Field Office Telephone equipment moves, adds, and changes

 Usage charges for conference calls (voice and video)

 Cost Center specific 800 service

 Pager charges

 Home Office local and long distance cost center specific

 Telecommunication vendor consulting charges

 X.400 usage charges

 Home Office Telephone equipment moves, adds, and changes – Included in Service 043

 System Maintenance – Included in Service 010 or 043

 Shared 800 services – Included in Service 044

 Voice Mail – Included in Service 010 or 043

 Cellular usage – Not provided by ITD

 Voice service desk – Included in Service 010 and 043

 PBX costs – Included in Service 010

 Invoice review and processing – Included in Service 055

 Vendor Management – Included in Service 055

Estimate the total dollar amount you anticipate requiring of this service.

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Sample Products Appendix (Appendix 1)

(Identifies the products included with rate-based services.) Service

Number

Service

Name Function Product Vendor Versions Comments 6080

Unix Application Hosting

Job

Scheduling AutoSys Platinum/CA 4.1-4.3

6040 Enterprise Office Tools Software Distribution PCM+ Computing Edge 1.3 New product available after Q1 6071 Laser Print Report

Language Forms Flash Internally developed N/A Support will end 12/31/XX XXXX Etc.

Sample Operations Appendix (Appendix 2)

(Identifies general functions provided when “Operations” is referenced in services.) Items included as part of operations:

 Data Center operations services are available on a 24 x 7 basis

 Operations and monitoring of all equipment in the Data Center

 Monitoring of Field Office infrastructure components

 Services provided include:

o Production scheduling and execution monitoring, including customer notification and abend resolution