Gartner IT Enterprise Key Metrics Data 2011

Gartner IT Key Metrics Data2011 SUMMARY REPORT

Key Industry Measures: IT Spend & Staffsummary report

This report contains database averages and only represents a subset of the published metrics and prescriptive analysis capability available through Gartner Consulting Benchmark Analytics.

IT Key Metrics Data Summary Report

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IT Key Metrics Data 2011: 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 2011 Summary Report provides an overview of IT Spend and Staffing Key Metrics as well as offers some insight into the distribution of that spend on average.

Sourced from Gartner research notes (RN): RN# G00208190 IT Key Metrics Data 2011: Executive Summary, RN# G00208200 IT Key Metrics Data 2011: Key Industry Measures: Cross Industry Analysis: Current Year.

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Publication Date: January 15, 2011 2 © 2011 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 program was established in the 1995 to support the strategic IT investment decisions of a G8 nation. Today IT Key Metrics Data is delivered online in an annual Gartner publication series of over 2000 metrics across 92 documents categorized by 5 core technology topic areas to allow you to rapidly identify high level IT spending, staffing and performance trends across 21 different industries as well as by technology area.

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, Wintel server, Unix server, Storage, Client & Peripheral Support, IT Help Desk, Data and Voice Network environments. Metrics by workload size are often provided.

Key Applications Measures

Application Development and Application Support spend & 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# G00208192 IT Key Metrics Data 2011: Index of Published Documents and Metrics.

IT Key Metrics Data 2011: Summary Report


TABLE OF CONTENTS

IT Key Metrics Data 2011: Summary Report ..................................................................................... 4 Demographics: Distribution by Industry ................................................................................ 4

IT Intensity Measures ......................................................................................................................... 5 IT Spend Key Metrics: By Industry: IT Spend as a % of Revenue - 2010 ........................... 5 IT Spend Key Metrics: By Industry: IT Spending per Employee - 2010($US) ..................... 6 IT Staffing Key Metrics: By Industry IT FTEs as a % of Total Employees (2010) ................ 7

IT Resource Distributions ................................................................................................................... 8 IT Spend Key Metrics: Cross Industry: Capital vs. Operational Expenses ........................... 8 IT Spend Key Metrics: Cross Industry: IT Strategic Spend to Run, Grow, and Transform the Business ................................................................................................................................ 8 IT Spend Key Metrics: Cross Industry: Distribution of Spending on Hardware, Software, Personnel, Outsourcing......................................................................................................... 9 IT Staffing Key Metrics: Cross Industry: In-House vs. Contract Employees ......................... 9 Performance Measurement Solutions from Gartner ........................................................... 10 About Gartner ...................................................................................................................... 11



IT Key Metrics Data 2011: Summary Report Looking Ahead The measures that follow highlight key spend and sourcing measures in the IT Enterprise. The measures explored should help to identify overall trends, although 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.

Demographics: Distribution by Industry

Source: Gartner IT Key Metrics Data 2011

Sample = 2,252

2%

2%

2%

2%

3%

3%

3%

3%

3%

4%

4%

4%

4%

4%

5%

5%

7%

7%

8%

11%

14%

0% 5% 10% 15%

Energy

Chemicals

Consumer Products

Telecommunications

Media and Entertainment

Food and Beverage

Transportation

Industrial Electronics and Electrical Equipment

Pharmaceuticals Life Sciences and Medical Products

Construction Materials and Natural Resources

Healthcare Providers

Software Publishers and Internet Services

Industrial Manufacturing

Utilities

Government - State/Local

Retail and Wholesale

Education

Government - National/International

Insurance

Banking and Financial Services

Professional Services

Percent



IT Intensity Measures

IT Spend Key Metrics: By Industry: IT Spend as a % of Revenue - 2010


IT spending as a percent of revenue is helpful in understanding the relative level of IT investment.

0.7%

1.2%

1.2%

1.4%

1.4%

1.9%

2.0%

2.5%

2.7%

3.1%

3.1%

3.2%

3.3%

3.9%

4.5%

4.5%

4.7%

5.8%

6.0%

3.5%

0% 1% 2% 3% 4% 5% 6% 7%

Energy


Food and Beverage Processing


Chemicals


Consumer Products

Utilities


Transportation

Insurance



Telecommunications



Education

Software Publishing and Internet Services


Database

Percent



IT Spend Key Metrics: By Industry: IT Spending per Employee - 2010($US)


IT spending per employee is often used to determine the amount of IT support the average company employee receives.

$4,388

$4,400

$4,760

$5,078

$5,343

$5,812

$5,954

$7,140

$7,584

$7,758

$8,226

$10,426

$11,168

$11,610

$13,278

$13,297

$14,724

$15,012

$15,937

$22,961

$28,756

$12,350

$0 $10,000 $20,000 $30,000 $40,000




Education



Consumer Products

Transportation


Chemicals




Energy

Telecommunications



Utilities



Insurance

Database Average



IT Staffing Key Metrics: By Industry IT FTEs as a % of Total Employees (2010)


IT employees as % of total employees is an additional measure of IT support and IT intensity from a human capital perspective.

1.5%

1.8%

2.1%

2.2%

2.5%

2.5%

2.6%

2.9%

3.5%

3.5%

3.5%

4.0%

4.8%

5.4%

5.5%

6.0%

6.5%

6.6%

7.5%

9.4%

11.9%

5.4%

0% 2% 4% 6% 8% 10% 12% 14%





Consumer Products


Chemicals

Transportation




Energy

Education


Utilities

Telecommunications





Insurance

Database Average

Percent



IT Resource Distributions

IT Spend Key Metrics: Cross Industry: Capital vs. Operational Expenses


IT capital expenses vs. operational expenses helps to portray the investment profile for an organization in a given year.

IT Spend Key Metrics: Cross Industry: IT Strategic Spend to Run, Grow, and Transform the Business


The distribution of IT spending to “run”, “grow”, and “transform the business” provides a view of the investment profile in business terms. In some industries, it is not uncommon to see high “run” focus – typically because organizations in the industry are not planning strong changes in business model or high organic growth - so this often times translates into a more “cost center” role of IT in the industry.

25% 75%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Capital Operational

67% 19% 14%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Run Grow Transform



IT Spend Key Metrics: Cross Industry: Distribution of Spending on Hardware, Software, Personnel, Outsourcing


Distribution of spending between hardware, software, personnel, and outsourcing can show the dynamics of business investments in IT.

IT Staffing Key Metrics: Cross Industry: In-House vs. Contract Employees


In-house vs. contract employee can help provide a view of the IT staffing strategy.

17% 21% 41% 21%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Hardware Software Personnel Salaries & Benefits Outsourcing

81% 19%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Insourced Contractors



Performance Measurement Solutions from Gartner IT Custom Benchmark and Executive Solutions

These solutions analyze the costs associated with operating internal IT functions and the price competitiveness of outsourced IT services.

Gartner IT Custom Benchmarks are individually configured, project-specific benchmarks that support mergers and acquisitions, the implementation of packaged software, or the support of major outsourcing contract evaluation. Through on-site data collection and client interviews, Gartner’s IT custom benchmarks leverage proven tools, and pre-packaged measurement components to streamline the process and ensure quality.

Gartner IT Executive Benchmarks help to support periodic events such as a performance review, strategy planning and the annual budgeting cycle. The Gartner team helps to collect the necessary data and the results are delivered in a formal on-site presentation. IT Executive Benchmarks provide a detailed analysis of the situation and are focused on delivering tangible results.

We provide peer-group price & cost comparisons for clients in the following areas:

Application Development and Support (including ERP Support)

Client & Peripheral Support and IT Help Desk

Data and Voice Network

Enterprise Computing (Unix, Wintel, Linux, Mainframe) and Storage

IT Service Catalog Rate Assessments And more…

High-Level Spending and Performance Scorecards and Metrics Gartner for IT Leaders Scorecard: Provides an objective external assessment of IT

investment or costs and service levels designed to identify strengths and areas for improvement based on a peer comparison using standard measurement frameworks for tracking and communicating IT performance.

CIO Scorecard

IT Budget Scorecard

Application Development and Support Scorecard

Green Information & Communications Technology (ICT) Scorecard

Information Security Scorecard

Infrastructure & Operations Scorecard

PMO Scorecard

And more...

Gartner IT Key Metrics Data: Published Metrics, IT Key Metrics Data provides you with immediate access to authoritative data on staffing levels, spending, key performance metrics and trends for all areas of IT to support your business.



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