IT Spending and Staffing Benchmarks 2022/2023—IT Budget and Cost Key Metrics by Industry and Company Size

Chapter 1: Executive Summary (Free Download)

This chapter provides an overview of the key findings from the full 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
  • Net percent increasing IT operational spending
  • IT operational spending growth by organization size
  • Adequacy of current IT operational budget to support the business
  • Total IT spending as percentage of revenue
  • IT operational spending per user
  • Change in IT operational budgets from prior year
  • Percentage of organizations changing IT capital spending
  • Capital budget as a percentage of IT spending
  • Spending priorities by IT initiative
  • Historical cloud subscription rates
  • Percentage of IT budget spending for running, growing, and transforming the business
  • Percentage of organizations changing IT staff head count

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. These chapters classify 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 Organization

IT operational budgets between $5 million and less than $25 million

• • Chapter 3C: Benchmarks for Large Organizations

IT operational budgets $25 million or greater

To avoid the problem of having very small organizations in our sample, we have excluded respondents with less than $50 million in annual revenue.

This year, to facilitate common definitions for IT cost data, we continue to align our metrics with the Technology Business Management (TBM) taxonomy. For more information, visit the TBM Council’s community website.

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 chemical reaction. The sector includes manufacturers of chemicals, petrochemicals, semiconductors, pharmaceuticals, dietary supplements, food and beverage products, cosmetics, building materials, packaging materials, steel, glass, paper products, and other process-manufactured goods. The 56 respondents in the sample range in size from a minimum of about $50 million to a maximum $60 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, athletic equipment, industrial equipment, telecommunications equipment, aerospace products, furniture, auto parts, electrical parts, medical devices, and electronic devices, among other products. The 56 respondents in this sample range in size from a minimum of about $50 million to over $100 billion in annual revenue.

Chapter 6: Banking and Finance Sector Benchmarks

Chapter 6 provides benchmarks for banking and financial services companies. The firms in this sector include commercial banks, investment banks, credit unions, mortgage lenders, consumer finance lenders, and other types of lenders and financial services providers. The 24 respondents in this sector range in size from a minimum of about $50 million to over $40 billion in annual sales.

Chapter 7: Insurance Sector Benchmarks

Chapter 7 provides benchmarks for insurance companies. The firms in this sector include companies that sell medical and dental insurance, life insurance, property and casualty insurance, auto insurance, disability insurance, and other types of insurance. The 17 respondents in this sector range in size from a minimum of $100 million to over $100 billion in annual revenue.

Chapter 8: Retail Sector Benchmarks

Chapter 8 provides benchmarks for retailers. This sector includes retailers of clothing, jewelry, hardware, furniture, sports equipment, groceries, pharmaceuticals, and general merchandise. They include department stores, fashion stores, furniture stores, pharmacies, convenience stores, sporting goods stores, and specialty retailers. We also include hospitality and consumer services in this sector. The 34 respondents in the sample range in size from $50 million to over $100 billion in annual revenue.

Chapter 9: Wholesale Distribution Sector Benchmarks

Chapter 9 provides benchmarks for wholesale distributors. The category includes wholesale distributors of building products, home furnishings, home improvement products, auto parts, industrial components, fuel supply, electronics, food and beverage, and other products. The 21 respondents in the sample range in size from a minimum of about $50 million to $6 billion in revenue.

Chapter 10: Energy and Utilities Sector Benchmarks

Chapter 10 provides benchmarks for public utilities, oil and gas producers, service companies, and midstream distributors across all organization sizes. The 19 respondents in this sector include public utilities (water, gas, and electric), integrated energy companies, upstream exploration and production companies, natural gas companies, pipeline operators, and other energy and utilities companies. The companies in our sample range in size from a minimum of about $50 million to more than $40 billion in annual revenue.

Chapter 11: Healthcare Services Sector Benchmarks

Chapter 11 provides benchmarks for healthcare services companies. The 50 respondents in this sector include community hospital groups, multiregional hospital systems, healthcare systems, dental service organizations, university hospitals, long-term care facilities, and other healthcare organizations. These organizations range in size from a minimum of about $50 million to $50 billion in annual revenue.

Chapter 12: Professional and Technical Services Sector Benchmarks

Chapter 12 provides benchmarks for professional and technical services organizations. The 58 respondents in the sample range in size from a minimum of about $50 million to about $40 billion in annual revenue. The sector includes firms that provide professional and technical services, including engineering, legal, accounting, financial advice, consulting, marketing, research, and other services.

Chapter 13: Transportation and Logistics Sector Benchmarks

Chapter 13 provides benchmarks for the transportation and logistics sector. The 18 respondents in this sample range in size from a minimum of $55 million to over $40 billion. The category includes organizations that operate buses, trucks, railways, airlines, barges, and ships. The sector also includes logistics companies that transport goods and transportation companies as well as regional transportation authorities that move people.

Chapter 14: Construction and Trade Services Sector Benchmarks

Chapter 14 provides benchmarks for construction and trade services companies. The 27 respondents in the sample range in size from about $50 million to over $28 billion in annual revenue. The category includes engineering and construction companies, commercial, residential, and industrial construction contractors, specialty contractors, oil field services firms, firms that provide mining services, environmental services firms, and other construction and trade services firms.

Chapter 15: IT Services and Solutions Sector Benchmarks

Chapter 15 provides IT spending and staffing statistics for the IT services and solutions sector. The category includes software companies, software-as-a-service providers, systems integrators, IT solution providers, business process outsourcing firms, and other providers of technology services and solutions. There are 31 organizations in the sample, ranging in size from around $50 million to over $50 billion in annual revenue.

Chapter 16: Government Sector Benchmarks

Chapter 16 provides benchmarks for government organizations. The 38 respondents in the sample range in size from about $44 million to $40 billion in annual revenue. The category includes city and county governments, federal and state agencies, law enforcement agencies, organizations that provide IT services to government agencies, and other government organizations.

Chapter 17: Nonprofits and Charitable Organizations Sector Benchmarks

Chapter 17 provides benchmarks for nonprofits and charitable organizations. The sector includes local and national charity organizations, conservation groups, youth development organizations, organizing bodies, and other nonprofit organizations. We do not include organizations where the nonprofit status only reflects the entity type, such as nonprofit hospitals, where for all intents and purposes they operate from an IT perspective in a way that is not significantly different from for-profit hospitals. The 25 respondents in the sample range in size from a minimum of about $31 million to $700 million in annual revenue.

Chapter 18: Education Sector Benchmarks

Chapter 18 provides benchmarks for the education sector. The sector includes public and private colleges and universities, business and medical schools, for-profit educational institutions, school districts, and foundations. The 23 respondents in the sample have annual revenues ranging in size from a minimum of about $50 million to around $2.4 billion.

Chapter 19: Commercial Real Estate Sector Benchmarks

Chapter 19 provides benchmarks for commercial real estate organizations. The 36 respondents in the sample range in size from about $50 million to over $1.5 billion in annual revenue. The sector includes retail, office, industrial, multifamily, and other property management companies, commercial real estate developers, real estate investment firms, and real estate brokers, consultants, and advisors.

Chapter 20: Media and Information Services Sector Benchmarks

Chapter 20 provides benchmarks for the media and information services sector. The sector includes publishing, broadcasting, entertainment, and digital media organizations, as well as other media and information services companies. The 13 respondents in the sample have annual revenues ranging in size from about $50 million to around $50 billion.

Chapter 21: High-Tech Subsector Benchmarks

Chapter 21 provides benchmarks for high-tech companies. The category includes computer products manufacturers, telecommunications equipment manufacturers, semiconductor manufacturers, aerospace and defense manufacturers, pharmaceutical makers, biotechnology product makers, software developers, software-as-a-service providers, and other high-tech companies. The 24 respondents in this sample range in size from a minimum of about $50 million to $50 billion in revenue.

Chapter 22: Food and Beverage Subsector Benchmarks

Chapter 22 provides benchmarks for food and beverage manufacturers. The 23 respondents in the sample range in size from about $65 million to $60 billion in annual revenue. Food and beverage companies produce beverages, snack foods, meat products, seafood products, dairy products, dietary supplements, 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 direct to consumers.

Chapter 23: Industrial and Automotive Subsector Benchmarks

Chapter 23 provides benchmarks for industrial and automotive manufacturers. The 31 respondents in this subsector make auto parts, aviation products, material handling equipment, engines, machinery, vehicles, and similar capital goods. The manufacturers in the sample range in size from about $50 million to over $100 billion in annual revenue.

Chapter 24: Commercial Banking Subsector Benchmarks

Chapter 24 provides benchmarks for commercial banks. This subsector includes credit unions and community, regional, international, and national banks. The 15 respondents in this sample have annual revenue ranging from a minimum of about $50 million to over $42 billion.

Chapter 25: Brick-and-Mortar Retail Subsector Benchmarks

Chapter 25 provides benchmarks for brick-and-mortar retailers. This subsector includes department stores, clothing stores, convenience stores, pet stores, pharmacies, hardware stores, nonprofit retailers, furniture retailers, agricultural retailers, and other retailers. The 22 respondents in this sample have annual revenue ranging from about $80 million to over $100 billion.

Chapter 26: Online Retail Subsector Benchmarks

Chapter 26 provides benchmarks for online retailers. This subsector includes clothing retailers, home furnishing retailers, dietary supplements and health products retailers, agricultural retailers, pharmaceutical retailers, educational products retailers, sports equipment retailers, and other online retailers. The 16 respondents in this sample have annual revenue ranging from about $100 million to over $100 billion.

Chapter 27: Utilities Subsector Benchmarks

Chapter 27 provides benchmarks for utilities. The 14 respondents in this subsector range in size from $85 million to $10 billion in annual revenue. This category includes gas and electric utilities, power transmission distributors, water and power utilities, and telecommunications service providers.

Chapter 28: Hospital Subsector Benchmarks

Chapter 28 provides benchmarks for hospitals. The 36 respondents in this subsector range in size from $50 million to around $80 billion in annual revenue. This category includes community hospitals, university hospitals, nonprofit hospitals, health clinics, healthcare systems, and regional healthcare providers.

Chapter 29: City and County Government Subsector Benchmarks

Chapter 29 provides benchmarks for city and county governments. This chapter is concerned with the IT workings of city or county governments and not individual agencies within larger governments (which can be found in Chapter 30). The 17 respondents in this subsector have annual operating budgets ranging from $50 million to $1.2 billion.

Chapter 30: Government Agencies Subsector Benchmarks

Chapter 30 provides benchmarks for federal, state, and regional government agencies. The category includes public health agencies, courts and law enforcement agencies, organizations that provide IT services to government agencies, social service agencies, state parks, and other federal, state, and regional government units. The 23 respondents in the sample have operating budgets that range in size from about $62 million to about $40 billion.

Chapter 31: Logistics Subsector Benchmarks

Chapter 31 provides benchmarks for logistics providers. The 16 respondents in this sample range in size from $52 million to about $52 billion. The sector is comprised of logistics companies that transport goods, including refined petroleum distributors, national moving or courier companies, freight transportation companies, supply chain logistics providers, and other logistics companies.

Chapter 32: Higher Education Subsector Benchmarks

Chapter 32 provides benchmarks for higher-education institutions. The sector includes public and private colleges and universities, research universities, business and medical schools, and for-profit institutions. The 21 respondents in the sample have annual revenues ranging in size from about $50 million to about $1.7 billion.