Browse Definitions :
Definition

IT financial management

Contributor(s): Matthew Haughn

IT financial management (ITFM) is the oversight of expenditures required to deliver IT products and services. The discipline is based on traditional enterprise financial and accounting best practices, such as mandating documentation of expenses and requiring regular audits and reports. However, IT financial management methods and practices are adapted to address the particular requirements of managing IT assets and resources.

Financial Management for IT Services is an element of the service delivery process area in the ITIL (Information Technology Infrastructure Library) ITSM (information technology service management) framework. The ITIL framework is designed to standardize the selection, planning, delivery and support of IT services to a business. The financial management component of the service delivery framework provides best practices for cost-effective oversight of IT assets and resources.

The main goal of IT financial management is providing the organization with an accurate and complete view of spending for all IT resources. Spend analysis for this process involves collecting, categorizing and evaluating expenditure-related data. The end purpose is optimization of IT spending and increased profitability.

Financial management is an essential component of IT procurement, the series of activities and procedures necessary to acquire IT products and services.

This was last updated in May 2016

Continue Reading About IT financial management

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

SearchCompliance

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance as a service (CaaS)

    Compliance as a Service (CaaS) is a cloud service service level agreement (SLA) that specified how a managed service provider (...

  • data protection impact assessment (DPIA)

    A data protection impact assessment (DPIA) is a process designed to help organizations determine how data processing systems, ...

SearchSecurity

  • encryption

    Encryption is the method by which information is converted into secret code that hides the information's true meaning. The ...

  • cybersecurity

    Cybersecurity is the protection of internet-connected systems -- including hardware, software and data -- from cyberattacks.

  • computer worm

    A computer worm is a type of malicious software program whose primary function is to infect other computers while remaining ...

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

SearchStorage

Close