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.