Service Innovation: Spending Metrics — IT Spending by Industry Sector
This IDC study provides a data-driven overview of the current trends in IT spending. It is intended to assist CIOs, IT executives, and line- of- business technology professionals in making informed budgeting decisions. This study focuses specifically on three metric categories: IT spending as a percentage of revenue, capex and opex as a percentage of total technology expenditures, and key technology groupings (i.e., hardware, software, IT services, and IT staffing and salaries) as a percentage of total technology expenditures. IT budgeting has always been an inexact process. Every company has different IT needs, and even when two companies' needs align, the solution won't always be the same. However, there is always value to be gained from benchmarking against peers: A strong understanding of sector practices provides valuable information for organizations working to ensure ongoing technological competency in a rapidly changing environment. This study focuses on IT spending metrics at the industry sector level. Some key features of this study are:
IDC believes that IT spending as a percentage of revenue is a tool that can be employed to inform IT budgeting decisions. However, IDC recognizes that IT spending as a percentage of revenue has limitations. Any decisions based on IT spending as a percentage of revenue should be carefully evaluated for alignment with a company's business model and strategy.
"With the ever-growing dichotomy between controlling costs and driving growth through new technology investments, there is increased scrutiny on the way IT budgets are being built," says Geoff Ryder, research analyst with IDC's IEP and CIO Agenda and Technology Professionals program. "It is more important than ever to remain aware of trends in IT spending habits across sectors and industries."Please Note: Extended description available upon request.