European IT Spending and Staffing Benchmarks Study

Key Metrics Descriptions

This section lists all the key metrics provided in the full study for all chapters.

Demographics

In Section 1, we describe the key characteristics of the sample to establish a basis for comparison with other IT organizations. These key metrics are as follows:

• • Organization size demographics, including revenue, employees, revenue per employee, and revenue per user
  • IT spending demographics, including total IT spending, IT operational spending, IT capital budget, and IT outsourcing budget
  • Key metrics of IT intensity, including users as a percentage of employees and PCs per user

Spending by Type

In Section 2, we provide IT spending benchmarks by type of spending. These key metrics not only provide additional demographic information but also identify IT trends. They include:

• • Outsourcing as a percentage of IT budget
  • Percentage of IT spending outside IT budget
  • Cloud software as a percentage of application spending

Total IT Spending Metrics

Section 3 presents key metrics for IT spending, which includes current-year IT operational and capital spending, but excludes depreciation. These key metrics include:

• • Total IT spending as a percentage of revenue
  • Total IT spending per user
  • Total IT spending per PC
  • Personnel spending as a percentage of total IT spending

IT Operational Spending Metrics

Section 4 presents key metrics for IT operational spending. These key metrics are as follows:

• • Trend in IT operational budgets
  • Change in IT operational budgets
  • IT operational spending as a percentage of revenue
  • IT operational spending per user
  • IT operational spending per PC
  • Personnel as a percentage of IT operational spending
  • Depreciation as a percentage of IT operational budget

IT Capital Spending Metrics

Section 5 provides an analysis of IT capital budgets, specifically IT capital budget as a percentage of IT budget.

IT Staffing Metrics

In Section 6, we provide key metrics and trend data on IT staffing, specifically:

• • Employees per IT staff member
  • Users per IT staff member

European Chapter Descriptions

Chapter 1: Executive Summary (Free Download)

This chapter provides an overview of the key findings from the European study and describes the contents of the subsequent chapters. It also includes information on the study participants and the survey methodology.

• • IT Operational Budget Change from Prior Year: US and Canada vs. Europe
  • IT Operational Budget Changes: US and Canada vs. Europe
  • IT Spending as a Percentage of Revenue: US and Canada vs. Europe
  • IT Operational Spending per User: US and Canada vs. Europe
  • IT Operational Spending per PC: US and Canada vs. Europe
  • Cloud Subscription Rates: US and Canada vs. Europe
  • Outsourcing as a Percentage of Total IT Budget: US and Canada vs. Europe
  • Personnel as a Percentage of IT Operational Budget: US and Canada vs. Europe
  • IT Personnel Spending Per IT Staff Member: US and Canada vs. Europe
  • Employees Per IT Staff Member: US and Canada vs. Europe

Chapter 2: Composite Benchmarks

This chapter provides composite metrics for all of the organizations surveyed, across all industry sectors and organization sizes. The key metrics provided in this chapter are listed in the Key Metrics Descriptions section above.

Chapters 3A, 3B, and 3C: Benchmarks by Organization Size

In these three chapters, we analyze each of our IT spending and staffing metrics by organization size. This chapter classifies organization size differently than most classification schemes. We use the size of the IT operational budget, as revenue is not always a good indicator of the size of the IT operation. This enables IT organizations to compare themselves against similar-size IT organizations. We define the size categories as follows:

• • Chapter 3A: Benchmarks for Small Organizations

IT operational budgets less than $5 million

• • Chapter 3B: Benchmarks for Midsize Organizations

IT operational budgets between $5 million and less than $20 million

• • Chapter 3C: Benchmarks for Large Organizations

IT operational budgets $20 million or greater

Despite the fact that this is a European study, we determined organization size in US dollars. This was to ensure an apples-to-apples size comparison between our main study and the European companion study. All metrics in the study are reported in euros. To avoid the problem of having very small organizations in our sample, we have excluded respondents with less than $50 million in annual revenue.

Chapter 4: Process Manufacturing Sector Benchmarks

Chapter 4 provides benchmarks for process manufacturers. Process manufacturers are defined as those where the production process adds value by mixing, separating, forming, or creating a chemical reaction. The sector includes manufacturers of chemicals, petrochemicals, semiconductors, pharmaceuticals, cosmetics, dietary supplements, food and beverage products, building materials, packaging materials, steel, glass, paper products, and other process-manufactured goods. The 40 respondents in the sample range in size from a minimum of about €50 million to a maximum €26 billion in annual revenue.

Chapter 5: Discrete Manufacturing Sector Benchmarks

Chapter 5 provides benchmarks for discrete manufacturing organizations. Discrete manufacturers are defined as those where the production process adds value by fabricating or assembling individual (discrete) unit production. The category includes manufacturers of consumer products, industrial equipment, telecommunications equipment, aerospace products, auto parts, electrical parts, medical devices, and electronic devices, among other products. The 20 respondents in this sample range in size from a minimum of €100 million to €85 billion in annual revenue.

Chapter 6: Retail Sector Benchmarks

Chapter 6 provides benchmarks for retailers. This sector includes retailers of clothing, hardware, furniture, sports equipment, groceries, pharmaceuticals, dietary supplements and health products, and general merchandise. They include department stores, furniture stores, pharmacies, sporting goods stores, and specialty retailers, both online and brick-and-mortar. We also include hospitality and consumer services in this sector. The 17 respondents in the sample range in size from €115 million to over €31 billion in annual revenue.  (36 pp., 21 fig.)

Chapter 7: Professional/Technical Services Sector Benchmarks

Chapter 7 provides benchmarks for professional and technical services organizations. The 20 respondents in the sample range in size from a minimum of about €93 million to about €85 billion in annual revenue. The sector includes firms that provide professional and technical services, including engineering, legal, accounting, financial advice, consulting, marketing, research, IT, and other services.

Chapter 8, Food and Beverage Subsector Benchmarks

Chapter 8 provides benchmarks for food and beverage manufacturers. The 14 respondents in the sample range in size from about €50 million to €26 billion in annual revenue. Food and beverage companies produce beverages, snack foods, meat products, seafood products, vegetables, dairy products, dietary supplements, pet food, and other consumable food products. Some are suppliers to other food manufacturers or to the food service industry, while many also distribute consumer products to retailers or directly to consumers.