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Gartner IT Key Metrics Data 2013

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Gartner IT Key Metrics Data 2013

Gartner IT Key Metrics Data 2013

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    Gartner IT Key Metrics Data 2013 Gartner IT Key Metrics Data 2013 Document Transcript

    • This report contains database averages and only represents a subset of the published metrics and custom analysis capability available through Gartner Consulting Benchmark Analytics. Gartner IT Key Metrics Data 2013 IT ENTERPRISE SUMMARY REPORT Gartner Consulting
    • IT Key Metrics Data Summary Report © 2013 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice. Publication Date: 1st March 2013. IT Key Metrics Data 2013: IT Enterprise Summary Report Jamie Guevara Eric Stegman Linda Hall Thank you for your participation in the IT Key Metrics Data Survey. This IT Key Metrics Data 2013 Summary Report provides an overview of IT Spending and Staffing Key Metrics. Sourced from Gartner research notes (RN): RN# G00245595 ―IT Key Metrics Data 2013: Executive Summary”, RN# G00245603 “IT Key Metrics Data 2013: Key Industry Measures: Cross Industry Analysis: Current Year,‖ this document only contains a subset of the published content. The Gartner IT Key Metrics Data reports contain relevant database averages from a subset of metrics and prescriptive engagements available through Gartner Benchmark Analytics. These database averages do not account for individual variations of unique competitive landscape, business scale, IT complexity or demand which may be justified by specific business needs. Complexity and demand for IT services should always be considered in the context of a cost or performance evaluation as these factors often dictate long term support requirements. IT Key Metrics Data should be used as a high level directional indicator and in the creation of planning assumptions and not viewed as an absolute benchmark. To participate in additional IT Key Metrics Data studies in exchange for IT Key Metrics Data research, visit: gartner.com/surveys To review Gartner Benchmark Analytics case studies, visit: gartner.com/technology/consulting/benchmarking/benchmarking-case-studies.jsp For more information on Gartner benchmarking capabilities, visit: gartner.com/technology/consulting/benchmarking/about-benchmarking.jsp
    • IT Key Metrics Data Summary Report 2 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. Gartner IT Key Metrics Data Series Overview IT Key Metrics Data is part of the Gartner Consulting Benchmark Analytics range of solutions and offers a macro-level look at Gartner’s global database of comprehensive cost and performance measures. IT Key Metrics Data provides you with immediate access to authoritative data on IT staffing and investment levels as well as key technology cost and performance metrics. The spending profiles published represent key metrics data collected directly from CIOs, CTOs, IT leaders and practitioners with respect to their organizations’ IT investment levels and future IT budgets. These metrics enable improved budget and investment decisions with regards to the business and IT’s changing environments. The IT Key Metrics Data annual publication series contains more than 2,000 IT metrics published by way of 93 Gartner Benchmark Analytics research notes. In addition to the key IT financial metrics in this research, a variety of IT staffing and productivity metrics are available in the areas listed below. Some reports show vertical industry tendencies, while others tend to be cross-industry perspectives. Many of the metrics show averages by revenue scale or size of IT infrastructure environment supported (i.e., number of server operating system instances, number of installed MIPS, number of personal computing devices). These key metrics reports are broadly defined by 5 key areas of the IT portfolio:  Key Industry Measures Enterprise-level total IT spending and staffing metrics across 21 industry verticals. Including current year and multiyear averages. Metrics based on enterprise size are often provided.  Key Infrastructure Measures Technology domain specific unit cost, productivity and performance measures for the IT infrastructure environments. Including current year and multiyear averages for the mainframe, Windows server, Linux server, Unix server, Storage, End-user Computing, IT service desk, data and voice network environments. Metrics by workload size are often provided.  Key Applications Measures Application Development and Application Support spending & staffing metrics, project measures, life cycle phase, productivity and quality measures (current year and multiyear).  Key Information Security Measures Enterprise-level total spending and staffing measures by industry and region.  Key Outsourcing Measures Enterprise-level total spending and staffing measures by industry and region. For a complete outline of all related published research in the series, see RN# G00245597 IT Key Metrics Data 2013: Index of Published Documents and Metrics (http://www.gartner.com/resId=2274915).
    • IT Key Metrics Data Summary Report 3 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. Table of Contents IT Key Metrics Data 2013: IT Enterprise Summary Report ........................................ 4 Demographics: Distribution by Industry..................................................................... 4 IT Spending Key Metrics: By Industry:........................................................................ 5 IT Spending as a % of Revenue – 2012 .............................................................................5 IT Spending per Employee - 2012($US).............................................................................8 IT Staffing Key Metrics: By Industry............................................................................ 9 IT FTEs as a % of Total Employees - 2012 ........................................................................9 Cross Industry IT Resource Distributions ................................................................ 10 IT Operational vs. Capital Spending .................................................................................10 Strategic IT Spending Categories: IT Spending to Run the Business, IT Spending to Grow the Business and IT Spending to Transform the Business ........................11 IT Spending Distribution: Hardware, Software, Personnel, Outsourcing ...........................12 Distribution of IT FTEs: Insourced vs. Contractor .............................................................13 About Gartner Benchmarking .................................................................................... 15 About Gartner.............................................................................................................. 18
    • IT Key Metrics Data Summary Report 4 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. IT Key Metrics Data 2013: IT Enterprise Summary Report Using this research The measures that follow highlight key spend and sourcing measures in the IT Enterprise. The measures explored should help to identify overall trends, and help IT and business leaders compare the investment levels of their enterprise IT spending with that of similar industry organizations. The datasets represent a mix of organizations of different sizes and vertical industry segmentations; and individual variations from these trends may be justified by specific business needs and objectives, as well as differences due to the size and complexity of an organization’s IT environment. Therefore Gartner recommends that each organization should assess its own situation carefully, and should not arbitrarily change to conform to published results (which do not necessarily represent best practices). For example, the metric of IT spending as a percent of revenue does not, by itself, provide valid comparative information that should be used to allocate IT or business resources. IT spending statistics alone do not measure IT effectiveness and are not a gauge of successful IT organizations. However they do provide an indicative view of global investment levels for the market in general. Data Sources Information for IT Key Metrics Data is collected globally, year-round through direct fact-finding in our many benchmarking and consulting engagements, through surveys of the Gartner community and at Gartner events, in addition to surveys of non-Gartner-based communities. Financial information, such as revenue and operating income, is also collected from secondary research sources, such as annual reports. Demographics: Distribution by Industry In 2012, Gartner collected IT Key Metrics Data from 2,295 public and private enterprises from more than 80 countries in 21 industry sectors. The result is the most comprehensive and authoritative IT spending, staffing and performance data in the industry. Figure 1 shows the distribution by industry of the data points that contributed to our key industry measures.
    • IT Key Metrics Data Summary Report 5 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. Figure 1. Demographics: Distribution by Industry Source: Gartner IT Key Metrics Data 2013 Sample = 2,295 IT Spending Key Metrics: By Industry: IT Spending as a % of Revenue – 2012 IT spending as a percent of revenue is helpful in understanding the relative level of IT investment, and varies considerably between industry sectors. 2% 2% 2% 2% 3% 3% 3% 3% 4% 4% 4% 4% 5% 5% 5% 6% 6% 7% 8% 12% 12% 0% 5% 10% 15% Chemicals Energy Media and Entertainment Telecommunications Consumer Products Software Publishing and InternetServices Food and Beverage Processing Pharmaceuticals,Life Sciences and Medical Products Industrial Electronics and Electrical Equipment Healthcare Providers Transportation Education Government- State/Local Utilities Industrial Manufacturing Construction,Materials and Natural Resources Government - National/International Retail and Wholesale Insurance Professional Services Banking and Financial Services Percent
    • IT Key Metrics Data Summary Report 6 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. Figure 2. IT Spending as a % of Revenue Source: Gartner IT Key Metrics Data 2013 Revenue is defined as "The enterprise revenue associated with the business units supported by the IT organization (banks should use total interest income plus noninterest income minus provision for loan losses, while insurance companies should use gross written premiums and other income)." The value of this measure is that it assists in identifying the competitiveness of investment levels relative to the most fundamental measure of business performance: revenue. While this has been viewed as a must-have, "back pocket" metric for many enterprises, common misuses include:  Looking at a single year rather than in terms of multiyear trends  Basing decisions on the assumption that this figure will not change in the future, sometimes dramatically  Failing to understand and address changes in the numerator and the denominator  Considering just the average rather the range of values (which can be found in Gartner IT Key Metrics Data reports specific to vertical industries) 1.0% 1.0% 1.1% 1.3% 1.5% 1.7% 2.0% 2.3% 2.8% 2.8% 3.3% 3.4% 3.9% 4.1% 4.5% 4.6% 4.7% 6.6% 8.1% 3.5% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% Energy Construction,Materials and Natural Resources Chemicals Food and Beverage Processing Retail and Wholesale Industrial Manufacturing Consumer Products Industrial Electronics and Electrical Equipment Utilities Transportation Pharmaceuticals,Life Sciences and Medical Products Insurance Healthcare Providers Telecommunications Professional Services Media and Entertainment Education Banking and Financial Services Software Publishing and InternetServices Database Percent
    • IT Key Metrics Data Summary Report 7 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. For the purpose of this report, Gartner has defined "total IT spending" as "The best estimate of total spending at the end of the 12-month budget period for IT to support the enterprise. IT budget/spending can come from anywhere in the enterprise that incurs IT costs, and it is not limited to the IT organization. It is calculated on an annualized 'cash out' basis, and, therefore, contains capital spending and operational expenses, but not depreciation or amortization." IT spending/budget includes, from a resource or cost perspective:  Hardware, software, personnel (including contractors, travel, benefits and training), outsourcing (external IT services like consulting, system integration, data and voice transmission), disaster recovery, and occupancy costs associated with supporting IT within the enterprise.  Occupancy costs include fully burdened costs for the facilities being used by the IT staff supporting the enterprise. Some examples include office space, furniture, electricity, maintenance, property taxes, security and office supplies. Occupancy costs for space dedicated to IT functions, such as the data center, including power/heat management and raised floor, are also included. Occupancy costs also include all taxes (except value- added tax where it is recovered or refunded to the organization). IT spending/budget includes, from an IT domain or activity perspective:  The data center (i.e., mainframes, servers, storage), end-user computing devices (desktops, laptops, PDAs, smartphones), voice and data networks (including, but not limited to, voice and data transmissions, fixed and mobile telephony, and Internet access services), IT service desk, and applications (development and maintenance).  IT support functions, such as the office of the CIO; supervisory management; finance and administrative costs, such as purchasing; asset management; process management; and marketing of IT services.  Dedicated data processing equipment used in operations, production and engineering environments—examples are computer-aided design/computer-aided manufacturing (CAD/CAM) and standard computing equipment used in devices for factory automation, and tablet PCs used by healthcare professionals. IT spending/budget does not include:  Costs for technology or services that are resold. Examples include salaries for developers involved in building commercially packaged software, or IT-skilled employees who provide services for the organizations' clients.  Operational technology that is equipment-built or purchased for non-data-processing purposes, but which has computerized components. Examples include robotic manufacturing machines, automated teller machines, specialized point-of-sale devices, scanners and blood pressure monitors.  Depreciation or amortization expenses, which could lead to double counting from an accounting perspective.  Internal ―cross charges‖ and corporate allocations related to expenses such as reductions in workforce, redundancy, relocations, retirement, human resources and chairperson's salary etc.  Business data subscriptions and services (such as Bloomberg), even if they are managed by the IT organization.
    • IT Key Metrics Data Summary Report 8 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. IT Spending per Employee - 2012($US) IT spending per employee is often used to determine the amount of IT support the average company employee receives. Figure 3. IT Spending per Employee Source: Gartner IT Key Metrics Data 2013 In calculating this metric ―Employees ―includes the count of employees within the organization (i.e., the head count, excluding enterprise contractors and consultants), regardless of whether these employees are frequent users of the technology supported by the IT organization. This includes full-time and part-time employees, or as reported in the public record." This measure helps to establish a link between IT investment and automation levels within the context of the workforce that supports revenue. Variations in this measure can represent niche- industry-specific delivery processes for service or product delivery, and, thus, should be viewed in conjunction with revenue and operating income per employee. Organizational staffing strategies and the use of contract employees can also impact this measure. $4,454 $5,190 $5,379 $5,606 $5,947 $6,385 $6,430 $7,060 $7,432 $7,670 $8,041 $10,807 $12,080 $13,810 $14,967 $16,362 $18,362 $18,556 $20,662 $26,060 $28,441 $13,197 $0 $10,000 $20,000 $30,000 Construction,Materials and Natural Resources Food and Beverage Processing Retail and Wholesale Industrial Manufacturing Healthcare Providers Education Consumer Products Government- State/Local Transportation Chemicals Industrial Electronics and Electrical Equipment Professional Services Pharmaceuticals,Life Sciences and Medical Products Energy Media and Entertainment Telecommunications Software Publishing and InternetServices Utilities Government - National/International Banking and Financial Services Insurance Database Average USD
    • IT Key Metrics Data Summary Report 9 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. IT Staffing Key Metrics: By Industry IT FTEs as a % of Total Employees - 2012 IT employees as % of total employees is an additional measure of IT support and IT intensity from a human capital perspective. Figure 4. IT FTE as a % of Total Employees Source: Gartner IT Key Metrics Data 2013 As the combination of functions performed by individual physical staff may vary from one organization to another, Gartner uses the concept of Full Time Equivalents (FTE) to ensure a like for like comparison. An IT FTE represents the logical staff that support functions performed by the physical staff, measured in calendar time. This includes all staffing levels within the organization, from managers and project leaders to daily operations personnel. This also includes insourced FTEs and contract FTEs. However, this excludes the staff of a third-party vendor (e.g., IT outsourcing), which is not operationally managed by the insourced staff, but rather is managed by the vendor. Understanding the relative level of IT staff dedicated to supporting the business can also assist in identifying whether the staff size is appropriate. This should be considered within the context 1.7% 1.7% 1.8% 2.3% 2.4% 2.7% 2.8% 2.8% 3.1% 3.6% 4.0% 4.1% 4.5% 4.9% 6.6% 6.8% 7.8% 8.3% 8.5% 9.5% 11.6% 5.3% 0% 5% 10% 15% Food and Beverage Processing Construction,Materials and Natural Resources Industrial Manufacturing Consumer Products Retail and Wholesale Chemicals Healthcare Providers Industrial Electronics and Electrical Equipment Transportation Government - State/Local Energy Pharmaceuticals,Life Sciences and Medical Products Education Professional Services Utilities Telecommunications Media and Entertainment Government - National/International Software Publishing and InternetServices Banking and Financial Services Insurance Database Average Percent
    • IT Key Metrics Data Summary Report 10 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. of the overall enterprise sourcing strategy and future-state objectives. Variables to consider in tandem with this metric include IT staffing distribution, contract vs. insourced FTEs, and IT outsourcing as a percent of IT spending, as well as the enterprise sourcing strategy (i.e., does the total employee count accurately represent the organization's workforce that is supported by IT? Do you have the ability to track the total number of internal users supported by IT? Cross Industry IT Resource Distributions IT Operational vs. Capital Spending IT operational vs. capital spending helps to portray the IT investment profile for an organization in a given year. Figure 5. IT Operational vs Capital Spending Source: Gartner IT Key Metrics Data 2013 IT operational expense is defined as:  "The total day-to-day operations and maintenance expenses for this fiscal year that have not been capitalized. These do not include any amortization and depreciation expenses." IT capital spending is defined as:  "The total capitalized IT spending for the fiscal year (i.e., the full value of capitalized assets acquired in the fiscal year). This includes investments in new application development and IT infrastructure." This information is typically available in most accounting or IT finance departments, and, thus, it may be easy to obtain year over year. This metric can provide visibility into the cyclical nature of capital investments (such as hardware, software and large service contracts) compared with recurring operational expenses (such as personnel, facilities and maintenance expenses). The challenge is in leveraging this information to communicate the linkage between IT investment and business results, because it is a traditional accounting view of IT cash flow and does not highlight how IT investment enables improved business performance. 28% 72% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Capital Operational
    • IT Key Metrics Data Summary Report 11 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. Strategic IT Spending Categories: IT Spending to Run the Business, IT Spending to Grow the Business and IT Spending to Transform the Business The distribution of IT spending to "run the business," "grow the business" and "transform the business" provides a view of the IT investment profile to support business performance. In some industries, it is not uncommon to see a high "run" focus — typically because organizations in the industry are not planning strong changes in business model growth or high organic growth — which often translates into a more "cost center" role for IT in the industry or niche sector. Figure 6. IT Spending to Run, Grow and Transform the Business Source: Gartner IT Key Metrics Data 2013 Classifying IT spending into categories that show impact on business outcomes or success can aid alignment and quantify underinvestment in IT. Gartner uses the following portfolio spending categories and defines them as follows: Run the business:  This is an indicator of how much of the IT resource is consumed and focused on the continuing operation of the business. It includes all nondiscretionary expenses as part of the run-the-business cost. Grow the business:  This is an indicator of how much of the IT resource is consumed and focused on developing and enhancing IT systems in support of business growth (typically organic growth). Discretionary investments are more likely to be included in the grow-the- business or transform-the-business cost. Transform the business:  This is an indicator of how much of the IT resource is consumed and focused on implementing technology systems that enable the enterprise to enact new business models. This is very much a "venture" category and would be represented by activities such as a brick-and-mortar retailer moving to online shopping; a traditional bank offering online banking (or moving into offering insurance services); or a commercial airline offering new freight services. 65% 20% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Run Grow Transform
    • IT Key Metrics Data Summary Report 12 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. Gaps in business alignment can be found by examining IT spending as it relates to the day-to- day operations of a business (run), the organic growth of the business or productivity improvement (grow) and its support of major business transformation, new products, services or business models (transform). A common misconception with this measure is that an IT initiative that may transform the IT organization, such as data center modernization or virtualization, should be classified as a "transform the business" investment. While these IT initiatives do transform the IT organization, they should primarily be classified as "run the business" investments because they support pre- existing IT services. IT transformation often leads to new business process improvements that enable the business to grow or build new revenue streams; therefore, these costs would need to be evaluated and distributed based on IT service and business performance. The run, grow and transform the business framework should always be viewed in business terms with respect to how IT will enable the business to grow or transform revenue, operating income and/or profit margins. IT Spending Distribution: Hardware, Software, Personnel, Outsourcing The distribution of spending between hardware, software, personnel and outsourcing costs can show the dynamics of IT investments. For the purpose of this research, personnel includes occupancy/facilities costs. Figure 7. IT Spending Distribution: hardware, Software, Personnel, and Outsourcing Source: Gartner IT Key Metrics Data 2013 The definitions of each category are as follows:  Hardware Expenses: These include all hardware expenses described in the IT budget/spend definition.  Software Expenses: These include all software expenses described in the IT budget/spend definition.  Personnel Expenses: These include:  Salary and Benefits Expenses: These should include salary (including overtime pay), benefits and "other" employee costs, such as travel and training for all IT FTEs. The "benefit load" should include costs for bonuses, paid holidays, vacations, medical/dental coverage, life and accident insurance, retirement plans, stock plans, 17% 21% 41% 21% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Hardware Software Personnel Salaries & Benefits Outsourcing
    • IT Key Metrics Data Summary Report 13 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. disability, Social Security, unemployment compensation, dependent care, tuition reimbursements and employee assistance programs (for example, physical exams, exercise programs and similar costs).  Occupancy/Facilities Expenses: These include fully burdened costs for the facilities being used by the staff that supports the enterprise. Some examples include office space, furniture, electricity, maintenance, property taxes, security and office supplies. Occupancy costs for space dedicated to IT functions, such as the data center (including power/heat management and raised floor), are also included.  Outsourcing Expenses: These include the fees for third-party or outsourcing contracts in which "outsourcing" is defined as "any situation in which the full operational responsibility for IT services is completely handed over to an external service provider (e.g., subcontracting microfiche, print, maintenance, procurement, system management, equipment)." This includes outsourced transmission services/expenses. This measure can be helpful in adding context to the IT investment strategy from a sourcing perspective, in terms of accounting-based resources that may be insourced (e.g., IT hardware, software, personnel and occupancy/facilities costs) vs. services delivered by a third party (e.g., outsourced services and data/voice transmission costs). As an organization increases or decreases the level of third-party/outsourced services, it may find an inverse effect in its associated personnel, hardware and/or software expenditures, depending on the scope of third- party services retained and on business requirements. The cyclical nature of capital investments in IT hardware and software may also play a significant role in an organization's IT spending outlay during a given year. Distribution of IT FTEs: Insourced vs. Contractor The distribution of IT FTEs: insourced vs. contractor can help provide a view of the IT staffing strategy. Figure 8. Distribution of IT FTEs: Insourced vs Contractor Source: Gartner IT Key Metrics Data 2013 Insourced IT FTEs are defined as:  FTEs who are employed by the IT organization (excluding contractors and consultants). These include all full-time and part-time employees supporting the IT environment, as defined by IT budget/spending. 80% 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Insourced Contractors
    • IT Key Metrics Data Summary Report 14 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. Contract IT FTEs are defined as:  Contract FTEs (contractors) are supplemental to your staff and are "operationally" managed by the in-house staff. These include all full-time, part-time and temporary contractors supporting the IT environment, as defined by IT budget/spending. IT contract labor or contractor usage can be an effective approach to maintaining flexibility and agility when business conditions are changing. However, keeping contractors for extended periods can be costly and limit process standardization.
    • IT Key Metrics Data Summary Report 15 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. About Gartner Benchmarking Gartner benchmarks are a starting point in helping IT organizations identify and assess IT performance against peer organizations and those considered best in class. Gartner benchmarks are individually configured, project-specific benchmarks that help support such IT challenges as cost optimization, growth planning, charging for IT services, budget validation, mergers and acquisitions, end-user satisfaction, application rationalization and the support of outsourced service contract evaluation. Benchmarking offers both a stake in the ground to determine where an enterprise is today and a future road map that shows where opportunities lie. While financial analysis of IT provides valuable insight into operational efficiency, our analytics go beyond the budget to understand and compare IT’s efficiency and effectiveness, enabling it to demonstrate value to the business, leverage external markets and reduce costs. Gartner Benchmarking supports clients across many roles and initiatives including: CIOs & IT Executives Average-performing organizations spend up to 41% more on IT than their more successful peers. Though cost control is now a must-have for any enterprise serious about its supply-side competitiveness, focus among executives has broadened to include value-creating demand- side elements such as employee productivity, customer retention, revenue growth and competitive advantage. There is a pressing need to ensure that IT spending (on average, 4% of revenue) drives business value and financial performance — not simply keep the lights on. We understand the key issues you are facing. Many IT optimization efforts fail due to an inability to recognize the importance of a holistic approach. Ideas are often one-dimensional and evaluated on their cost-saving potential, with insufficient insight into customer, competitive and operational factors or the organization’s ability to execute. Analytics are often too narrow and short-sighted, capturing point-in-time comparisons to static benchmarks without regard to the broader market context of supply and demand. Previous efforts focused on extracting costs from the IT supply side; today’s efforts require a focus on business demand to determine if the right IT systems are being supported. Infrastructure and Operations I&O benchmarks are a starting point in helping IT organizations identify and assess IT cost and performance levels against peers. Our benchmarks are based on defined-consensus models, which examine the performance of mainframe, Windows server , Unix server, storage, Linux x86, end-user computing, IT service desk, voice and data networks, cloud computing, and service catalogs.
    • IT Key Metrics Data Summary Report 16 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. We understand the key issues you are facing.  Modernization and consolidation  Cloud computing  Virtualization  IT service portfolio  IT service catalog  Networking Applications With application development and support typically representing 40% to 50% of the IT budget, applications benchmarks can be a good starting point in the process of helping IT identify and assess productivity and cost-efficiency issues in the area most likely to drive high costs. We understand the key issues you are facing. Application organizations face ever-expanding application portfolios and unprecedented demand for projects, all while being challenged by the business to reduce costs. They possess enormous amounts of data, but at the same time lack a holistic picture by which to communicate their overall performance. Ever-elusive measures of application and project workload are a key challenge many organizations face in establishing continuous improvement programs — it is difficult to establish consistent measures of performance, including productivity/unit cost and product quality as measured by defects. Perception-based measures of customer satisfaction can also be just as important as quantitative metrics. Given the diverse mix of applications and technologies in the portfolio, and multisourced delivery models, organizations are asking, "How do our productivity, efficiency and effectiveness compare with those of our competitors?" Sourcing & Vendor Relationships Financial analysis of IT Services provides valuable insight into market competitiveness. Our analytics go beyond the budget to understand and compare IT Services, scale, service levels, geography, terms and conditions and labor factors to demonstrate value to the business by leveraging external markets for cost justification. Our comprehensive price benchmarks provide answers to key questions:  Do I have a competitive market price for the services under contract ?  How do services, service levels, terms, etc. compare to the market? We understand the key issues you are facing.  Support throughout the full sourcing lifecycle  Evaluation of competitive pricing  Negotiating/renegotiating contracts  Focusing on governance for future success
    • IT Key Metrics Data Summary Report 17 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. End-User Satisfaction End-user satisfaction can make or break IT’s credibility and future success. Our unique IT customer satisfaction benchmark establishes a baseline and creates a road map by capturing both the importance of, and satisfaction with, the services provided — enabling prioritization of efforts and limited resources to improve future satisfaction levels. We understand the key issues you are facing.  What is our level of IT customer satisfaction?  What are end-users' top concerns?  What are the strengths of IT?  Are there any issues/pain points IT needs to be aware of?  Are the techniques being used to evaluate customer satisfaction levels based on trusted information?  Are we comparing our customer satisfaction levels with peers that have utilized similar survey methodologies?  How can we maximize customer satisfaction while operating under resource constraints? IT Business Effectiveness CIOs and IT managers are constantly challenged to support rapidly changing business needs while managing costs and performance in an increasingly complex environment. Strong IT management and governance processes are required to drive strategic planning, optimal decision making and effective use of existing resources. Support of revenue generation activities is a paramount responsibility. Our benchmarks establish a baseline for IT’s effectiveness in meeting business needs, and identify opportunities to better align the IT organization with the enterprise for optimal results. Our methodology focuses respondents exclusively on factors contributing to perceptions of IT’s effectiveness in meeting business requirements. We understand the key issues you are facing.  How well are the BUs and IT aligned in developing business strategies?  How effective is the IT organization in partnering with BU executives to implement technology that addresses the needs of business processes and adds value to the enterprise?  Are the techniques being used to evaluate business effectiveness based on trusted information?  How can you better align the goals of the IT organization with those of the business?  How can you prioritize IT initiatives for increased productivity and ROI? TO LEARN MORE about our benchmarking capabilities and how Gartner can help you with your IT challenges: Contact your Account Executive or email us at benchmarkinginfo@gartner.com
    • IT Key Metrics Data Summary Report 18 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. About Gartner Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. We deliver the technology-related insight necessary for our clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, we are the valuable partner to thousands of clients in 12,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, we work with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 5,200 associates, including 1,280 research analysts and consultants, and clients in 85 countries. Gartner Consulting brings together research insight, benchmarking data, problem-solving methodologies and hands-on experience to improve the return on your IT investment. Understanding: We know the issues you face.  70% of the Fortune 1000 use Gartner for their key technology initiatives.  We deliver business value in 1,800 high-impact initiatives a year.  Every year, we deliver over 5,500 IT cost and performance benchmarks, the largest repository in the industry. Capabilities: We have the data, tools and capabilities to help.  Gartner solutions address the specific needs of each industry.  All of our solutions are based on our extensive research.  Every solution makes use of our performance benchmarking data.  We employ seasoned consultants, with an average of 15 years’ experience. Experience: We help you deliver tangible results.  Our benchmarking clients typically spend 19% less than their peers for the same workload.  We produce $400 million in annual aggregate cost savings for our clients. Get more information on Gartner Benchmark Analytics by contacting your account executive, or visiting gartner.com/benchmarking. To participate in more IT Key Metrics Data surveys, visit: gartner.com/surveys.