Almost every organization has a centralized IT team, which works with internal business partners such as the application development team and the support teams of various business units. The IT team manages the demand for IT infrastructure, which includes the cost of all software, hardware, and support to manage application hosting. Often, business partners lack understanding of the cost drivers for the IT services that they use. For example, application development tends to overprovision their development or test environment, causing an additional cost.
Other factors that get the right sizing and demand forecasting from various organization units can help to match supply and demand. By consolidating all requirements in one place, an organization can benefit from economies of scale. You may achieve a lower variable cost because a large contract can achieve higher economies of scale. The right demand from all organization units is aggregated, which...