Benchmarking
Avasant’s Benchmarking Services for IT Spend, Staffing, IT Services, BPO Services, Software Licences, Cloud Services and Rate Cards
Client Case Study
Avasant benchmarked an IT Infrastructure Service Contract (TCV: $250M) for a multinational engineering and construction firm, with client’s IT Service Provider was actively engaged. Our benchmarking experts prepared a cost baseline across 14 countries and 7 service towers, and compared the baseline to comparable market benchmarks. In addition to this, Avasant also provided guidance to align the contract structure to current market requirements.
Acting on Avasant’s benchmark findings and recommendations, the client realized savings of over $98M for contract term. The provider was able to retain the client without competitive bidding and also managed to increase the contract scope .
IT SPENDING BENCHMARK
Avasant provides deep expertise in IT cost and staff analysis, with a library of over 75 metrics across more than 25 Industry verticals. This capability allows us to provide targeted and data-driven recommendations to optimize the IT spend of our clients.
Guided by our commitment to help our clients make better data-driven decisions, we acquired research and data powerhouse Computer Economics™. Computer Economics has been publishing IT Spend and Staffing benchmarking since 1990—longest running in the industry.
TCO AND SPEND TRANSPARENCY ANALYSIS
As IT organizations continue to evolve as value drivers governed by principles of business management, Avasant offers TCO Analysis for Enterprise IT organizations, by categorizing IT Spend in standard Service Areas and Cost pools.
This standardized TCO view enables a comparison of your IT Costs to industry peers.
In addition to this, Avasant can help you compare multiple scenarios to develop the relevant business case for sourcing and organization-level transformations.
STAFFING AND SALARY BENCHMARK
Having the right in-house IT talent is of strategic importance for today’s businesses, and their cost and availability is governed by multiple factors, including skillset and geography.
Avasant’s database includes salary benchmarks for more than 100 job titles across locations in US, UK and Canada.
In addition to these, we provide staffing benchmarks for 16 IT functions, that provide a comprehensive view of IT staff ratio for industry peers.
IT INFRASTRUCTURE SERVICES BENCHMARK
With ubiquity of Digital Workplace and Cloud-based infrastructure, IT Infrastructure Services have gained strategic importance within Enterprise Architecture. In recent years, IT Infrastructure solutions have achieved cost efficiencies through innovation and economies of scale, and Avasant has been at forefront to track their impact on market.
Avasant offers the most current market price comparison for end to end Managed Services, covering over 90 resource units in 50 geographies.
As the benchmark data is sourced from actual negotiated IT contracts, it covers a diverse set of IT service providers in terms of the rate they offer for a comparable IT Service/Resource Unit.
DIGITAL AND APPLICATION SERVICES BENCHMARK
With Digital and Application Services, enterprises need to maintain the right balance of investment in innovation and cost management for on-going operations. This service area is the most strategic compared to other IT service areas, with offerings from Service Providers across tiers and specializations.
With access to over 50,000 contracts, Avasant is uniquely positioned to provide accurate market rates (hourly / monthly) for over 100 IT roles covering skillset in Digital Services, Service Management, Application Management, Infrastructure Management, and Cloud Services.
Our Rate Card benchmarks across these services address all the key attributes that impact the market price, including delivery location, environment (long-term v. short-term projects) and billing model (Managed Services, Time & Material).
BPO SERVICES BENCHMARK
Enterprise Business Processes continue to focus on cost efficiency, especially with right-shoring, RPA and other IT interventions.
Avasant provides market price comparison for the entire gamut of enterprise BPO services as well as certain industry specific areas like Healthcare BPO and Insurance Services.
We use industry standard metrics to benchmark the cost (like process cost per transaction) and performance efficiency (error rate, cycle time).
CLOUD ENTERPRISE AGREEMENTS BENCHMARK
As Public Cloud services make inroads in established enterprises, negotiating a Cloud Enterprise Agreement with market competitive terms is key to optimally realize the ROI.
Avasant consultants have extensive experience in helping our clients optimize their Azure/Google Cloud/AWS pricing, and develop saving plans through Enterprise Discounts and Private Pricing.
IT SOFTWARE LICENSE BENCHMARK
As the software licenses cost and associated maintenance and services consume a substantial portion of IT budgets, we cover software license cost from Total Cost of Ownership perspective, covering all key cost elements in our benchmarks:
- License cost
- Hosting cost
- Release & on-going maintenance cost
- Implementation support cost
- Upgrade support cost
- Training and technical consulting cost
Avasant’s benchmarking services help companies optimize software spend for enterprise applications, strategic business applications, and commercial off the shelf (COTS) solutions.
Contact Us
Akshay Khanna
Partner
Avasant
Robert Joslin
Partner
Avasant
Anuj Jain
Benchmarking Practice Lead
Avasant
