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Cost centre vs. Profit centre – the debate continues!

16 May, 2012 Leave a comment

Should IT be a cost centre or a profit centre?

This debate has been on-going for a number of years, and continues to be still relevant. The reason for this debate is rather simple, accountability. Business wants to know what they get for sinking millions of bucks into IT, and IT wants to prove that they are worth the money given to them. The debate starts when the return on investment and productivity of the IT department must be proven on the financial statements. In essence the core of this debate is to prove the performance of the IT department and to show that business gets a proper return on their investment.

What is a cost centre?

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