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Pay for Performance: Popularity and Impact of Incentive Pay in the IT Workforce
Incentive pay programs have been popular for decades, because many business managers believe that paying for performance can motivate workers and increase productivity. Nevertheless, the largest incentive-pay packages are becoming less common, and there is a flattening of incentive pay as a component of overall compensation. This report we provide data on the percentage of employees receiving incentive pay by job level, the percentage of compensation comprising incentive pay, and the percentage of incentive pay based on individual, group, and company performance. We conclude with recommendations for implementing effective incentive pay programs and mitigating the unintended consequences. (17 pp., 4 fig.) [Research Byte]
November, 2019
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A Noble Cause Showing the Importance of Smart Integration
When companies look for new finance and accounting systems, they give high priority to financial requirements. But what about the integration requirements for all the surrounding systems? One organization that shows the importance of system integration is Room to Read, a nonprofit that works to improve literacy and girls’ education in low-income communities around the world.
October, 2019
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IT Security Spending Increases Not Going Toward More Security Personnel
Security remains a top priority for organizations in terms of new investment, according to our annual IT Spending and Staffing Benchmarks study, though little of that spending is heading toward additional security head count. After two years of increases, IT security personnel have declined slightly as a percentage of total IT staff. This Research Byte looks at the five year trend in IT security staffing, based on our full report.
October, 2019
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IT Security Staffing Ratios 2019
IT security budgets are rising again this year in the wake of a continuing onslaught of high-profile ransomware attacks. For many IT organizations, this means it may be time to reassess the adequacy of their IT security staffing levels. In this report, we present the five-year trend in IT security staffing and provide benchmarks for understanding IT security staff head count: as a percentage of the IT staff and as a percentage of the Network and Communications Group. We also analyze IT security staffing in terms of the number of applications, the number of users, and the number of network devices. In addition, our analysis includes the influence of organization size and sector on staffing requirements. We conclude with recommendations for optimizing IT security staffing. (22pp., 9 fig.) [Research Byte]
October, 2019
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Oracle Wants Us to Take Our Hands off the Wheel…Are We Ready?
Last year, Oracle announced an autonomous database. This year it’s an autonomous operating system. But are customers ready to give up control to this extent?
September, 2019
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IFS and Acumatica Moving in Together in the ERP Space
When does the relationship between two tech vendors look like a merger but is not actually a merger? For all intents and purposes, that’s exactly what just happened with two players in the enterprise resource planning (ERP) industry, Acumatica and IFS. The move has prompted many questions, which company executives attempted to answer at a recent analyst event.
September, 2019
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IT Management Best Practices 2019/2020
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]
September, 2019
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Progress in IT Security Practices Mixed but Not Improving Overall
Computer Economics has released its major annual study on 34 IT management best practices, and one important category of practices–IT security and risk management–is showing mixed results. Adoption of one vital IT security best practice is down, while others are up or flat. This Research Byte highlights our findings on IT security best practices along with an overview of the contents of the full report. The full report analyzes the growth and maturity of all 34 best practices, which are grouped into five major categories: IT governance, IT financial management, IT operational management, IT security and risk management, and application development.
September, 2019
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IT Outsourcing Statistics 2019/2020
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. (115 pp., 97 fig.) Full Report Description [Research Byte]
August, 2019
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IT Outsourcing Rebounds with Big Jump
Outsourcing is bouncing back. After a temporary drop last year, the average percentage of total IT budget that organizations are spending on outsourcing is now at a five- year high, according to the new IT Outsourcing Statistics 2019/2020 study from Computer Economics. This Research Byte takes a look at the factors behind the jump in IT outsourcing this year and highlights seven top line findings from the full report.
August, 2019
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The Benefits of Business Process Framing
In selecting and implementing a new enterprise system, business leaders have learned the importance of evaluating business processes. However, they often think that this means they should begin with detailed process mapping of their existing processes. We propose a better way: Begin with an exercise we call business process framing. In this post we provide a definition of process framing, explain the differences between process framing and process mapping, and outline the benefits of beginning with process framing before moving on, selectively, to process mapping.
August, 2019
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Greatest Changes in Enterprise IT as Seen through 30 Years of Surveys
A lot can change in three decades. We asked the survey respondents of the Computer Economics IT Spending and Staffing Benchmarks study, now in its 30th year, what technologies they felt had the largest impact on the IT organization since we began our study in 1989. This report details the results of that survey and the 12 technologies that we felt had the biggest impact over the past thirty years.
July, 2019
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Journey to the Cloud—The Long and Winding Road
Would it surprise you to discover out that, for most companies, they’ve barely started the cloud transition? Modern-day SaaS providers as we know them today have been around since just before the turn of the century. Amazon Web Services and other public cloud services are at least a decade old. But according to the Computer Economics annual IT Spending and Staffing Benchmarks study for 2019/2020, the cloud transition still has a long way to go.
July, 2019
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If IT Budgets Are Growing in 2019, Why Aren’t IT Headcounts?
IT operational budgets are growing for companies of all sizes in 2019, but that growth is not being mirrored in IT staffing levels, which are essentially flat at the median. According to Computer Economics, fewer than half (46%) of all companies are planning to increase IT head count. At the same time, the economy is strong and we do not see widespread layoffs of IT personnel on the horizon. This Research Byte explores the reason for this apparent contradiction.
July, 2019
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