Computer Economics -- for IT metrics, ratios, benchmarks, and research advisories for IT management
Metrics for
IT Management
Free Research Bytes
Server Support Staffing Ratio Stops Freefall
Data Management Staffing Catching up with Data Explosion
How Service Providers Can Help Retailers, CPG Firms Navigate the COVID Seas
What’s Behind the Five-Year Upward Trend in IT Outsourcing?
Strategies for Managing Outsourcing Spend in the Post-COVID World
IT Spending as a Percentage of Revenue by Industry
Featured Research
Server Support Staffing Ratios
September, 2020
In state-of-the-art data centers—whether operated on-premises or by managed service providers—demand for server support administrators has declined since 2012. How many server support staff members does an organization need today? To answer that question, we provide four key benchmarks: server support staff as a percentage of the IT staff, users per server support staff member, physical servers per server support staff member, and OS instances per server support staff member. We provide these metrics for small, midsize, and large organizations. We also assess how industry sector can influence server support staffing metrics. We conclude with recommendations for improving server support productivity. (22 pp., 10 fig.)[Research Byte]
Data Management Staffing Ratios
September, 2020
The data explosion is finally making an impact on data management staffing. Through the middle of the decade, data management staffing plateaued despite the fact that organizations of all sizes were making more use of data. However, data management head count recently has increased significantly. In this study, we use four benchmarks to assess data management staffing levels: data management staff as a percentage of the IT staff, data management staff as a percentage of the Application Group, users per data management staff member, and applications per data management staff member. (21 pp., 10 fig.)[Research Byte]
Retail & CPG Digital Services 2020-2021 RadarView
August, 2020
In one of the most visible outcomes of the COVID-19 pandemic and recession, more than 8,000 brick-and-mortar stores have closed. However, online sales have skyrocketed. As home-bound customers shop for essential items online, many retailers are stocking up their online marketplaces.. Leading consumer packaged goods (CPG) companies have reported more than 30% revenue growth in e-commerce sales by increasing investments in direct-to-customer operating models and by leveraging digital technologies. As a result, e-commerce sales now account for more than 10% of their overall revenue. Additionally, with curbside pick-up and “buy online pick-up in store” (BOPIS) gaining traction, we expect more growth in online sales.[Research Byte]
IT Outsourcing Statistics 2020/2021
August, 2020
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. (113 pp., 97 fig.)Full Report Description
[Research Byte]
Artificial Intelligence Adoption Trends and Customer Experience
August, 2020
Artificial intelligence is not a single technology but several closely grouped technologies that allow for a machine to absorb and analyze data in order to make a recommendation or take an action. AI is not yet a mature technology, but interest in it is growing. Although only 13% of companies that completed our Technology Trends 2020 survey have adopted any type of AI solution, 27% indicate that they are investing in new AI capabilities. This report provides an overview of AI adoption and investment trends, providing data on how many organizations have solutions in place, how many are in the process of implementing it, and how many are expanding implementations. We also look at the return on investment experience, total cost of ownership experience, and which type of solutions are the most popular. We conclude with steps to consider when planning for an AI implementation. (21 pp., 10 fig)[Research Byte]
IaaS Adoption Trends and Customer Experience
July, 2020
IT organizations are growing their use of infrastructure as a service (IaaS) for a variety of purposes, including internal production systems, systems development and testing, and disaster recovery. We expect that growth to continue, though some companies are reticent to adopt IaaS. This report quantifies the current adoption and investment trends for IaaS, as well as the benefits driving adoption and the buyer concerns holding it back. We assess these trends by organization size, sector, and region. We also look at the return on investment and total cost of ownership experience of those who have adopted IaaS and conclude with practical advice for IT leaders seeking to gain support for IaaS investments. (18 pp., 12 fig)[Research Byte]
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]
Vendor Discount Report, July 2020
July, 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., 10 fig.).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]
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]
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]
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]
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]