At times, most technicians will be asked to explain the cost structure of their organization. What are the macro-level IT and digital spending structures in my industry? How can we justify our IT cost allocation to businesses? Are there opportunities in our IT stuffing strategy that we can take advantage of? Despite the limitations of benchmarking, Forrester wants to make sure that you have what you need to give the best possible answer when benchmarking.
IT benchmarks are an integral way of adapting to current market conditions and provide industry-level insights for decision making and pricing. Benchmark Metrics allows executives to compare the performance of their IT firms with other firms, including those in their own industry, using standard metrics. Tech execs are interested in IT benchmarks for a variety of reasons and uses: from budget planning and performance improvement to cost chargeback and showback, portfolio comparison, and consolidation and acquisition.
Forrester has signed an exclusive partnership with ISG that enables us to equip technologists with high-quality, legitimate IT benchmarks. ISG provides a comprehensive metric on IT costs, staffing and quality of service that transcends categories such as:
- Here it is: A high-level view of an organization’s IT environment including metrics such as IT spend percentage of revenue and CAPEX vs. OPEX.
- Applications: Extensive KPIs on application development and maintenance.
- Infrastructure: Detailed KPI on mainframe, server, storage, network, workplace services and service desk.
- Digital: Digital spend as a percentage of revenue, a high-level view of an organization’s digital journey with metrics like digital spending per employee.
This data is carefully collected from 6,000+ projects across a wide area and industry. Our Forrester Decisions technology executives and clients of Forrester Decisions Technology Architecture and Delivery Services will have access to these benchmarking metrics and exclusive reports covering KPIs, as well as the best to use or interpret these data.
Before embarking on a benchmarking journey, it is important to understand the proper use of benchmarking, as well as whether or not this metric can be misused or misused. Technology executives using IT benchmarks must recognize that these data should not be used as the sole driver of technology budgets and operational decisions. However, when used properly, benchmarks can drive business value in a variety of ways. These metrics can help technology executives identify key trends in investment and operations in their industry and provide high-level context that can inform their IT strategies. These metrics can be used by technology execs to ask more granular questions that lead to effective action on IT costs and how to be more proactive about changes in the technology landscape.
Learn more about Forrester’s ISG benchmark offer, including our recently published report, “2022 IT and the Digital Budget Benchmark, North America.”
Through a partnership with the Information Services Group, a leading technology consultant and IT benchmarking firm, Forrester will provide its clients with unique IT benchmarking data and insights from ISG Inform 7. This information is carefully sourced from 6,000+ Assessment across a wide range of regions and industries. Learn more about ISG Inform 7 here: https://isg-one.com/consulting/isg-inform
Special thanks to Michael Carney for his contribution to this blog.