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BluLogix

Revolutionizing B2B Monetization

By BluLogix Team

Why “Free” IT Costs Public Sector Organizations More Than They Realize

For many public sector organizations, IT is often seen as a centralized function—funded from a general pool, available to all, and rarely scrutinized for its cost or value. This perception, however, has real consequences. When IT appears “free,” it’s easy for departments to overconsume, underoptimize, and overlook the true cost of services. The result? Overspending, budgeting headaches, and broken trust between departments and Shared Services teams. The truth is, nothing in IT is free—not cloud storage, cybersecurity, licenses, infrastructure, or support. Yet without visibility into what departments are using and how much it’s costing, Shared Services Organizations are left juggling spreadsheets, handling disputes, and defending every invoice.

Ready to see how BluIQ can transform your billing process and help you achieve integrated, automated, and accurate complex monetization? Schedule a demo with a BluLogix billing expert today and take the first step towards revolutionizing your revenue management.

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The Problem with Traditional Cost Allocation

Traditional methods like fixed allocations, headcount-based cost splits, or static percentage models simply don’t reflect reality. They create winners and losers—where low-usage departments feel penalized, and high-usage groups are effectively subsidized. Worse, they lead to inefficiencies because there’s no clear signal to departments about what their consumption actually costs. 

In an era where public trust and fiscal transparency are paramount, this is no longer acceptable. 

The Shift to Cost Recovery Chargeback

This is where cost recovery chargeback comes in. Rather than broadly distributing IT costs across the organization, chargeback assigns costs based on actual usage—per department, per service, in real time. 

That means: 

  • Cloud usage is billed by gigabyte. 
  • Licensing is billed by user or instance. 
  • Support hours are tracked and attributed to the correct group. 
  • Every charge is clear, defensible, and aligned with GAAP and GASB standards. 

Departments gain visibility, and Shared Services gains credibility. 

Transparency Drives Better Behavior

One of the most powerful benefits of cost recovery chargeback is its impact on departmental behavior. When teams know exactly what they’re consuming—and how much it costs—they start to make smarter choices. They optimize cloud usage. They manage license assignments more carefully. They understand why IT decisions matter financially. 

This isn’t about limiting access. It’s about enabling accountability. 

A Better Path Forward for Public Sector IT

At BluLogix, we’ve seen firsthand how public sector IT Shared Services Organizations can transform their operations with the right cost recovery model. That’s why we’ve created a step-by-step whitepaper: “Selecting the Optimal Cost Recovery Chargeback Solution for Public Sector Organizations.” 

In it, you’ll find: 

  • A clear framework for evaluating chargeback solutions 
  • A checklist of must-have capabilities for public sector teams 
  • A roadmap for running a Proof of Concept (PoC) before full rollout 
  • Real-world examples of success from Shared Services teams 

It’s time to move away from the illusion of “free” IT—and toward a model that promotes visibility, fairness, and strategic value. 

📘 Download the whitepaper now and take the first step toward a more transparent IT operation.   https://blulogix.com/ebooks-whitepapers/selecting-the-optimal-chargeback-solution-for-state-local-and-education-sled/   

Or learn more about how BluLogix Chargeback solutions can help you  
https://blulogix.com/public-sector-cost-recovery 

Ready to see how BluIQ can transform your billing process and help you achieve integrated, automated, and accurate complex monetization? Schedule a demo with a BluLogix billing expert today and take the first step towards revolutionizing your revenue management.

Schedule a Demo Today
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