Software Chargeback (Cost Recovery)

Does your organization chargeback (recover) software costs?

  • If not, why not?
  • If yes, for what software? How based and calculated? (e.g., software allocation or use, general software cost per person model, other?)

Thank you for any information you can share!

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We have a few different models: software paid for by IT and generally available on our build/image is bundled into the chargeback price of the device. Specialty software requested through a catalog is charged back by allocation. In both cases, the calculation is based on the license cost, labor cost to support the software (license management activities, software packaging, distribution, catalog management), and how many users are using the solution. For infrastructure software, we charge back business units per installation or instance based on the license metric and calculated against the cost of the license.

Thanks Elise! Generally consistent with my experience and common practice. I do note that the cost of cost recovery is often overlooked or underestimated.