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% of Corp. Gross to IT

By admin ·
Does anyone know of or have any guidelines as to what percentage of gross company profit is allocated to IT, on the average? I know this is probably industry specific to some extent, but in a meeting this morning there was some complaint about the rising cost of IT. I pointed out that we were spending less than 1% of our gross on IT, and people thought this was too high. I'm pretty sure it's not, but I can't find any hard data.

If this concept is normally measured another way, I would be interested in that too.

Any help would be much appreciated. Thanks!

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Depends on Industry, 8% is round number

by JamesRL In reply to % of Corp. Gross to IT

If you subscribe to Gartner Group services you can get a detailled spending survey by standard industry codes.

If you go to Informationweek's Jan 8/2001 edition(available online) you will see the main story is the spending outlook for IT as a whole -8% is what they put on the cover.

The variables include whether the spending is centralized or decentralized (not all IT spending is within an IT department), industry type, size of organization etc.

Hope this helps.

James

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Thanks James!

by admin In reply to Depends on Industry, 8% ...

That Outlook 2001 article was exactly the sort of thing I was looking for.

Much appreciated.

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Cost per desk

by SBWorks In reply to % of Corp. Gross to IT

Mnay of the small and medium business owners I've worked with had a hard time grasping percentage of gross numbers as related to anything real so I tend to average out IT costs per desk (or per person) per year. Since they can relate that amount they pay an employee, they can relate to the cost of computer support.

I can't imagine trying to make this system work in a large company, though. Too many variables.

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