ITFM (IT Financial Management)

ITFM (IT Financial Management) is the discipline of financially planning, managing and charging IT services. The aim is transparency about which costs arise in IT, which services and recipients cause them and what value IT contributes to the organization. To this end, ITFM combines financial data from accounting with consumption, contract and service data from the IT organization.

Core tasks include budgeting and forecasting, building a cost model from cost pools via allocation keys to charging rates, showing or charging costs via showback and chargeback, as well as benchmarking and portfolio decisions. Frameworks such as Technology Business Management (TBM) and FinOps provide standardized structures and terminology for this. IT Financial Management is usually implemented with dedicated tools that bring together general ledger data, volume data and service catalogs.

Closely related is IT Cost Management, which focuses on cost control and the identification of savings potentials. ITFM is broader and explicitly includes pricing, internal charging and the management of IT's value contribution.