This is the norm in many enterprise shops that I've worked with. IT sets a rate ...

		bhousel on Nov 25, 2009 \| parent \| context \| favorite \| on: Are Nash Equilibriums Killing Agile Initiatives? This is the norm in many enterprise shops that I've worked with. IT sets a rate that they "charge" their business-side "clients". The rate is set by some formula that takes into account space, equipment, and other administrative overhead. However I don't see how it follows that they have issues because of it. Why do you think so?

Because you have an incentive to "sell" work, even if it isn't in the interest of the company.