Best Practices for Benchmarking IT Budget Ratios

February, 2013


Benchmarking is a popular way for IT organizations to justify their IT budgets and better focus their efforts toward continuous improvement. But without following certain principles, business leaders will likely question the validity of the outcome. This report, based on many years of benchmarking exercises at Computer Economics, a division of Avasant Research outlines three complementary approaches to benchmarking. It then identifies five best practices for defining peer groups, selecting key metrics, understanding variations by industry and organization size, analyzing gaps, and translating findings into actions. (15 pp., 6 figs.)

[Research Byte]