Overhead Allocation Inefficiencies
Definition
Regulated utilities and IT operations face strict rules for splitting shared costs like IT maintenance between services, often relying on manual FTE surveys, revenue proxies, or blended methods, leading to time-intensive processes and potential AER rejections.
Key Findings
- Financial Impact: 20-40 hours/month manual allocation effort; 7-16% indirect costs misallocated per KPMG report
- Frequency: Monthly for billing cycles
- Root Cause: Manual FTE surveys and lack of automated WBS data for shared IT/operations costs
Why This Matters
The Pitch: IT System Operations firms in Australia 🇦🇺 waste 20-40 hours/month on manual cost allocation. Automation of causal allocator calculations eliminates this overhead.
Affected Stakeholders
Finance Managers, IT Operations Leads, Billing Teams
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
GST/BAS Billing Errors
AER CAM Non-Compliance Fines
Patch Management Rework Costs
Overtime Costs for 24/7 Monitoring
Downtime Losses from Poor Monitoring
Capacity Loss from Manual Testing Downtime
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