Perspective: An Asset Management Enigma — U.S. Agencies Spend Four Times More on IT per Employee Versus Industry Average

This IDC Government Insights Perspective looks at the information technology (IT) cost per employee across 26 different U.S. federal departments. On average, the U.S. federal government spends nearly four times more on information technology, per employee, than other industries. Currently, the federal government spends an average of about $39,177 per employee on a wide range of IT solutions. However, the average across all other industries (excluding government and education) is just under $9,900. That's a high average number for the feds, but some agencies do display greater IT efficiencies than others. The Veterans Administration weighs in at a moderately efficient $12,993 annually per employee. At the other end of the scale, the Department of Health and Human Services spends over $187,580 per employee.

In This Perspective
Simple Formula, Complex Issues
Challenges Faced by Government
IT CPE by Agency
Better Asset Management Could Turn the Tide
What if We Measure IT Costs per IT Worker (Rather than per All Employees)?
Essential Guidance
Actions to Consider
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Related Research

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