it_key_metrics_data_2017_sma_316576.pdf

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This research note is restricted to the personal use of [email protected] This research note is restricted to the personal use of [email protected] IT Key Metrics Data 2017: Small and Midsize Enterprise Executive Summary Published: 12 December 2016 ID: G00316576 Analyst(s): Linda Hall, Eric Stegman, Shreya Futela, Disha Gupta This research contains enterprise-level IT investment, cost and staffing metrics for 21 vertical industries in the midmarket, collected throughout 2016 from a global audience of CIOs and IT leaders. It provides an overall summary of the ITKMD Key Industry Measures SMB published research. Key Findings By using multiple IT investment metrics, midsize enterprises are better able to view IT spending within the context of IT supply and demand requirements relative to business performance. The 2016 cross-industry average IT spending as a percent of revenue for midsize enterprises is 4.6%, compared to the average of 3.5% for all enterprises The average cross-industry IT spending as a percent of operating expenses for midsize enterprises is 6.0%, compared to the average of 4.6% for all enterprises. The average cross-industry IT spending IT spending per employee for midsize enterprises is $14,242, compared to the average of $13,365 for all enterprises. Recommendations Midsize enterprise IT and business leaders should use this research along with the ITBudget Tool to compare their IT metrics to published industry metrics (see gartner.com/itbudget ) on an ongoing basis (at least annually as part of the IT budgeting process, for example). These measures should be considered in the creation of future-state (both short- and long-term) objectives to quantify IT planning assumptions and to better understand niche or industry competitive drivers, inhibitors, conditions and trends. Use of this information should be considered the beginning of an ongoing measurement program. Organizations should consider investing in customized, re ned, prescriptive or in- depth benchmarking engagements on a recurring basis to support the budget cycle, or whenever making signi cant, fact-based IT or business decisions.
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This research note is restricted to the personal use of [email protected] This research note is restricted to the personal use of [email protected] Table of Contents Analysis .................................................................................................................................................. 4 How Does Your IT Organization Stack Up Against Peers of the Same Size and Industry? ................. 4 IT Key Metrics Data Research Background ................................................................................. 4 IT Key Metrics Data Key Industry Measures Overview ................................................................. 5 Using This Research ................................................................................................................... 7 Gartner’s ITBudget Tool: Compare Your IT Metrics to Your Industry ............................................ 8 Gartner IT Key Metrics Data Series ............................................................................................. 9 IT Key Metrics Data Source ........................................................................................................ 9 Data Variations ......................................................................................................................... 10 Demographics ................................................................................................................................ 10 2016 IT Investment Measures ......................................................................................................... 10 Total IT Spending/Budget Definition .......................................................................................... 10 Points of Clarification ................................................................................................................ 12 IT Intensity ................................................................................................................................ 13 IT Spending as a Percent of Revenue, 2016 ............................................................................. 13 IT Spending as a Percent of Operating Expense, 2016 ............................................................. 17 IT Spending per Employee, 2016 .............................................................................................. 20 IT Budget Distributions: Uncover the Facts ..................................................................................... 23 IT Operational Versus Capital Spending .................................................................................... 23
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