Delaware Department ofRealizing IT Centralization (ITC) requires a full and complete understanding of the State of Delaware’s Total Cost of Ownership (TCO) for technology services, assets, and resources.
Shared Services is a business model that enables technology resources to be leveraged across an entire organization resulting in shared costs with standard service levels. The Shared Service Cost Model is a method for determining the total cost to deliver a shared service across the enterprise. Using Service-Based Costing (SBC), an ITIL – Financial Management budgeting concept, all related costs and expenses are being allocated to the appropriate IT services and a unit cost is defined for each IT service based on consumption.
The DTI Shared Service Cost Model establishes an annual rate per user for Secure End User Services (SEUS). Because SEUS services are delivered across all agencies, the total cost of ownership is shared equally by all agencies.
A sustainable cost model is achieved when all necessary costs associated to the service provided can be fully recovered.
The Shared Service Cost Model is predicated on actual fixed, project, and consumed costs, as well as the costs to innovate and continue to right size IT services and tools for the state’s projected future needs.
The agency fiscal impact of Secure End User Services at centralization is calculated using the below equation. First, the agency user count for each service is confirmed to generate the annual cost of the SEUS package. Next, the agency’s current costs associated with delivering the in-scope services are subtracted from the annual costs. This includes reallocated staff salaries and current expenses paid to vendors and DTI. For example, tools, software, and hardware used for the agency service desk or desktop services.
| End User Package Annual Cost (# Users x Service Monthly Rate x 12) | $$ |
| – (subtract) Expenses of IT Positions Reallocated to DTI | ($$) |
| – (subtract) Expenses of EU Services/Tools Paid to Vendors Prior to ITC | ($$) |
| – (subtract) Expenses of EU Services/Tools Paid to DTI Prior to ITC | ($$) |
| Total Fiscal Year Net Impact | $$ |
ITC agencies will retain personnel salary funding when staff is reallocated to DTI and assigned to DTI’s Listing of Authorized Positions (LAP) report. Agencies will pay for consumed SEUS services and not direct personnel costs.
Secure End User Services will be delivered in a secure, efficient, and equitable manner based upon the State’s policies and standards for each service. An annual Partner Service Agreement (PSA) will be developed in collaboration with each agency based on their SEUS consumption. With several of these services currently being delivered at the enterprise level, agencies may only opt-out of the Service Desk, Desktop Services, and Enterprise Voice Services.
If an agency chooses not to consume one or more services, an MOU will secure a commitment from the agency to deliver services in adherence to State standards and policies.
In the current SEUS cost model, there is no specific rate for Kiosk users as the agency will NOT be charged by package rate but based on a per-user consumption rate.
Related Topics: Cost Model, Information Technology Centralization, ITC
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