European Chapter Descriptions
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
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:
IT operational budgets less than $5 million
IT operational budgets between $5 million and less than $20 million
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 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 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 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 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 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.