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Coronavirus Putting 2020 IT Budget Plans in State of Flux
Coronavirus Impact on IT Budgets Still Coming
How Digital Transformation Will Drive IT Organizations in the Post-Pandemic World
Digital Masters 2020 – COVID-19 Redefining Frontier of Digital Transformation
SAP S/4HANA—Laying a Foundation for Digital Transformation
IT Spending as a Percentage of Revenue by Industry, Company Size, and Region
How Does IT Spending Vary by Industry and Company Size?
Featured Research
IT Spending and Staffing Benchmarks 2020/2021: Full Study
July, 2020
Our IT Spending and Staffing Benchmarks study for 2020/2021 provides a comprehensive view of the current state of IT budgeting and staffing levels for business and governmental organizations in the U.S. and Canada, based on our 31st annual survey. Detailed metrics are provided by organization size and by industry sector. From within this article, you can purchase all 31 chapters at a significant discount off the individual chapter price. Individual chapters are also available for purchase – click the Full Study Description below for details. (1,895 pp., 1,145 figs.)
[Full Study Description and Individual Chapter Pricing]
[Full Study Description and Individual Chapter Pricing]
The Impact of COVID-19 on IT Budgets in 2020
July, 2020
The coronavirus pandemic of 2020 has led to a worldwide recession, with a significant impact on IT budgets. Because our current IT spending benchmarks adjust based on levels of business activity, they can still be applied in times of economic decline. Nevertheless, many IT leaders want to understand how IT spending is being influenced by current pandemic and economic conditions. Based on our special survey, this report outlines how the pandemic is affecting IT operational budgets, IT capital budgets, IT staff head counts, compensation, outsourcing, budgets for new projects, and the use of the public cloud. We also report how long IT leaders expect it will take for their budgets to recover from the current recession. We also forecast expected IT spending cuts by industry for all of 2020, along with our recommendations for IT leaders in managing their spending through the crisis. (22 pp., 11 fig.)[Research Byte]
Digital Masters 2020 RadarView
June, 2020
As IT leaders are aware, cloud systems are essential for digital transformation. That growing awareness is reflected in the surge of public cloud adoption, it grew by about 35% in 2019. But the advent of the coronavirus pandemic in 2020 has accelerated enterprise adoption of cloud and hybrid cloud infrastructure. Many companies are now honing their roadmaps for cloud-led digital transformation and have shown clear intent to accelerate their investments. As a result, we expect the growth rate for public cloud services to reach 40%-50% in 2020. Additionally, we expect adoption of industry-specific, cloud-based Software-as-a-Service (SaaS) solutions to grow three-fold this year. This is one of the key findings of Avasant’s latest, comprehensive Digital Masters 2020 RadarView™ report. (84 pp.)[Research Byte]
SAP S/4HANA Services 2020 RadarView
June, 2020
Tens of thousands of SAP customers face a decision in the next six years. As the end-of-support deadline for SAP ECC approaches in 2027, implementation labor costs for SAP’s next-generation S/4HANA ERP system are expected to skyrocket due to a lack of skilled resources. As a result, about 30% of service providers’ investments over the next 12 months are aimed at certifying their employees for S/4HANA. They’ll do this by leveraging SAP learning platforms, developing in-house learning programs, and establishing S/4HANA training programs in partnership with universities for their students. That is one of the key findings of Avasant’s SAP S/4HANA Services 2020 RadarView report. The report is a comprehensive study, packed with industry-first insights, analysis, and a close look at the leaders, disruptors, innovators, and challengers in this market. (74 pages)[Research Byte]
Network Support Staffing Ratios
May, 2020
Although computer networks are now more important than ever, the level of network support staffing has settled at a plateau in recent years and shows no signs of rebounding. This report will help IT managers determine whether their organization is keeping pace with improvements in network management by comparing their network support staffing ratios against industry benchmarks. We provide four benchmarks: network support staff as a percentage of the IT staff, network support staff as a percentage of the Network and Communications Group, network devices per network support staff member, and users per network support staff member. We provide benchmarks by organization size and sector. We conclude with recommendations for reducing or at least maintaining the cost of network support staff. (21 pp., 9 fig.)[Research Byte]
Database Administration Outsourcing Trends and Customer Experience
May, 2020
Database administration outsourcing often leads to satisfied customers who save money. But compared with other outsourcing categories in our annual study, the use of database administration service providers is not a widely practiced strategy. To help IT executives understand their options, this study examines adoption trends in database administration outsourcing. We report on the percentage of organizations outsourcing database administration (frequency), the average amount of work outsourced (level), and the change in the amount of work being outsourced (trend). We also present success rates for the customer cost and service experience and show how these trends differ by organization size and sector. We conclude with recommendations for improving the effectiveness of database administration outsourcing. (17 pp., 8 fig)[Research Byte]
COVID-19 Impact on IT Organizations and Service Provider Relationships
April, 2020
As the COVID-19 pandemic continues, IT leaders are asking what actions they should take and what a recovery will look like. The recovery will include reorganization of IT service delivery, invocation of force majeure, and renegotiation of support agreements with third parties. Newly updated for April, 2020, this presentation lays out the expected life-cycle stages for the current pandemic and its impact on IT services short-term and long-term. We also outline specific contractual and legal considerations that IT leaders should understand in renegotiating relationships with service providers. (34 slides).[Research Byte]
Data Center Outsourcing Trends and Customer Experience
April, 2020
Data center outsourcing provides good economic and service success, but the frequency by which IT organizations choose to outsource this function has been volatile. In this study, we provide IT executives with insight into how broadly their peers are undertaking outsourcing as a data center strategy. We also examine the success rates that organizations are having with reducing cost and improving service through outsourcing the critical data center function. We conclude with five steps for assessing the feasibility of data center outsourcing. (19 pp., 8 fig.)[Research Byte]
Web/E-Commerce Staffing Ratios
April, 2020
Web/e-commerce support personnel play a critical role in organizations, and that has become even more clear in the midst of the COVID-19 pandemic. Even before the coronavirus, the percentage of the IT staff dedicated to web/e-commerce functions rose in 2019, spiking to the highest percentage in five years. In this report, we provide benchmarks for staffing functions related to web and e-commerce development and operations. We benchmark web staffing with two ratios: web/e-commerce staff as a percentage of the IT staff and users per web/e-commerce staff member. Benchmarks are provided by organization size. We also assess the influence of sector on web/e-commerce staffing. (21pp., 8 fig.)Mobile App Adoption and Customer Experience
April, 2020
The quest for a fully mobile enterprise continues with increasing adoption in mobile applications. This report provides an overview of mobile application adoption and investment trends, providing data on how many organizations have the technology in place, how many are in the process of implementing it, and how many are expanding implementations. We look at the return on investment experience, total cost of ownership experience, considered or planned uses for new mobile app investment, as well as the platforms on which companies are developing them. We conclude with recommendations to make the most of mobile application investments. (20 pp., 10 fig.)[Research Byte]
Internet of Things Services RadarView 2020
April, 2020
The number of Internet of Things (IoT) projects is expected to grow in the near future as technologies that rely on rapid data collection from IoT devices, such as real-time analytics and artificial intelligence (AI), become more mainstream. Large-scale adoption of edge computing and the advent of 5G connectivity have disrupted the IoT market across three areas — connectivity, data, and security. Avasant’s new Internet of Things Services RadarView 2020 report is a comprehensive, deep-dive study of the IoT market that informs enterprises about new developments and best practices in the space. It highlights Avasant’s viewpoint on the direction of the industry over the next 12 to 18 months and also provides a granular understanding of key IoT service providers. (81 pages)[Research Byte]
Applied AI & Advanced Analytics Services RadarView 2020
April, 2020
Enterprises have been experimenting with artificial intelligence (AI), but few have deployed AI at full-scale. As with early adoption of many technologies, proof-of-concept projects have demonstrated success in reducing costs, increasing productivity, and improving customer experience. These early successes have led many companies to begin larger AI projects that will require access to additional skills both internally and externally to ensure that success continues. This is one of the top findings of Avasant’s latest, comprehensive Applied AI and Advanced Analytics Services RadarView 2020 report. The report assists enterprises in identifying use cases, transformation potential, success stories, challenges, and action plans to accelerate their efforts in AI and advanced analytics. (79 pages)[Research Byte]
Life Sciences Digital Services RadarView 2020-2021
April, 2020
Investments in gene editing, cancer vaccines, and treatments through microbiome and CAR-T therapies provides improved, personalized treatment to patients and reduces healthcare costs by more than 35%. Such advanced and innovative treatments leverage AI and analytics technologies to expedite the development cycle. As such, there is a greater need for life sciences service providers who understand the trends in the life science industry and the direction of the market over the next three years. This report provides a comprehensive, deep-dive study on the life science industry, including top trends, analysis, recommendations, and a close look at the leaders, innovators, disruptors, and challengers in this market. (89 pages)[Research Byte]
Vendor Discount Report (April 2020)
April, 2020
The largest and best discounts are often only offered to the vendors’ best customers, and buyers may find it difficult to determine whether the discount offered is typical or whether a better deal can be negotiated. The Vendor Discounts Report is designed to give procurement personnel, lessors, lessees and departmental manager’s insight and guidance regarding current discount structures on a variety of categories of equipment in the marketplace. (11 pp., 11 fig.).Agile Development Adoption and Best Practices
March, 2020
After more than two decades of maturation, agile development methodologies promise to deliver new systems more quickly, improve software quality, and increase user satisfaction. While adoption remains only moderate in corporate IT groups, agile development continues to gain adherents as organizations seek to respond to a continuously changing environment. In this study, we report how widely and deeply agile development is being embraced by IT groups today, by organization size and sector. We conclude with our recommendations on how to best use, and not misuse, agile development. (17 pp., 6 fig.)[Research Byte]
Trends in Telecommuting in the IT Workforce
March, 2020
The practice of working remotely has skyrocketed over the past 11 years for many reasons, and in early 2020 it got a huge boost with growing concerns about the COVID-19 coronavirus. This report examines the reasons for the rise in telecommuting, how often IT workers do so, and what benefits companies and employees are enjoying—while also being mindful of possible disadvantages. We conclude with best-practice recommendations for a sound telecommuting policy. (10 pp., 4 fig.)[Research Byte]
Cybersecurity Services RadarView 2020
March, 2020
This report provides highly detailed, comprehensive RadarView Profiles of the top 28 cybersecurity service providers along with their assets and experience in combating ever-growing security and privacy threats. It analyzes how the service provider landscape has evolved, not only in terms of categorization but also in the way they are investing in developing talent, enhancing organizational structures, expanding geographic focus, and strengthening their partner network. The service providers are judged on practice maturity, partnership ecosystem, and investments and innovation. (88 pp.)[Research Byte]
IT Project Management Staffing Ratios
March, 2020
In today’s environment of rapid change, the role of the IT project manager is critical. It is no surprise, then, that after two years of decline, the number of project managers as a percentage of the total IT staff increased in 2018 and 2019. In this study, we assess how many project managers a typical IT organization requires. We present five benchmarks: project managers as a percentage of the IT staff, project managers as a percentage of the Application Group, users per project manager, applications per project manager, and application programmers per project manager. Our analysis also includes the influence of organization size and industry sector. We conclude with recommendations on assessing the performance of the project management function. (25 pp., 11 fig.)[Research Byte]
Worldwide IT Spending and Staffing Outlook for 2020
January, 2020
Although IT leaders worldwide have a positive outlook for the global economy, that outlook seems a bit tinged with frustration compared to previous years. This report, based on our Q4 survey, provides data on the global and U.S./Canadian trends for IT spending and staffing in 2020. This year, our report assesses IT operational and capital spending plans, executive priorities for IT investment, and plans for hiring, outsourcing, and pay raises for IT organizations worldwide and in the U.S. and Canada. (34 pp., 24 fig.)[Research Byte]
IT Salary Report 2020
December, 2019
The Computer Economics IT Salary Report 2020 provides total compensation for 77 IT job functions for more than 400 U.S. metro areas and 20 industry sectors. The executive summary also provides our forecast for pay raises and hiring in 2020 and includes job descriptions for each job function. The salary tables are provided as a downloadable Microsoft Excel workbook, with total salaries reported at the 10th, 25th, 50th (median), 75th, and 90th percentiles. (37 pp., 8 figs., plus salary tables)[Research Byte]
[Full Description and Free Executive Summary]
IT Spending Benchmarks for Very Small Organizations 2019/2020
November, 2019
For the first time, Computer Economics has conducted a study on the IT spending habits of “very small” organizations in the U.S. and Canada, a population that is beneath the size threshold for our annual IT spending and staffing benchmark study. This report examines high-level IT spending, staffing metrics and trends for such very small IT organizations. We further break down the high-level metrics by three sectors: manufacturing, retail and wholesale distribution; professional and technical services; and financial services. To qualify as very small for the purposes of this study, a company has to be either under $50 million in revenue or under $1 million in IT operational spending. (36 pp., 17 fig.)[Research Byte]
IT Management Best Practices 2019/2020
September, 2019
The best-run IT organizations not only focus their process improvement efforts on those of other departments, they also seek to optimize their own IT management processes internally. In this study, we examine the growth and maturity of 34 IT management practices which we have grouped into five major categories: IT governance practices, IT financial management practices, IT operational management practices, IT security and risk management practices, and application development practices. (197 pp., 178 figs.)[Full Report Description and Sample Pages]
[Research Byte]
IT Outsourcing Statistics 2019/2020
August, 2019
This major study profiles outsourcing activity for 11 IT functions: application development, application management, data center operations, database administration, desktop support, disaster recovery services, help desk services, IT security, network operations, system implementation/integration and web/e-commerce systems. For each IT function, we measure the frequency and level of outsourcing. We also look at the current plans of IT organizations to increase or decrease the amount of work they outsource. We examine the customer experience to assess whether organizations are successfully lowering costs or improving service through outsourcing. Finally, we show the outsourcing frequency by sector for each function. (115 pp., 97 fig.)Full Report Description
[Research Byte]
IT Spending and Staffing Benchmarks 2019/2020: Full Study
July, 2019
Our 2019/2020 IT Spending and Staffing Benchmarks study provides a comprehensive view of the current state of IT budgeting and staffing levels for business and governmental organizations in the U.S. and Canada, based on our 30th annual survey. Detailed metrics are provided by organization size and by industry sector. From within this article, you can purchase all 31 chapters at a significant discount off the individual chapter price. Individual chapters are also available for purchase – click the Full Study Description below for details. (1,811 pp., 1,057 figs.)[Full Study Description and Individual Chapter Pricing]