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IT Metrics

Are you continually measuring your IT investments? Every year, Gartner delivers over 5,500 IT cost and performance benchmarks by 5 critical perspectives: IT Enterprise, IT Infrastructure, Applications, Information Security, and IT Outsourcing.

Published on: May 21, 2012

Service Desk Costs Drop 3.5% YOY

Cost optimization efforts may be helping to drive IT service desk costs down year over year (from $20.10 per contact to $19.39), although without the context of quality, some efforts may negatively impact end-user satisfaction.

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As with all cost-efficiency metrics, no one measure ever tells the whole story. Context such as business requirements and scale, in addition to staff productivity, service levels and the level of automation, should all be considered in tandem with cost-efficiency metrics.

On average, IT service desk costs per agent handled contact are down year over year 3.5%, to $19.39. Within the same period, first-contact resolution rate is down 2.4% to 62.7%, as compared to the previous year.

The first-contact resolution metric remains a fundamental metric, and is a "must know" for IT service desk management and a key metric reported to senior management. First-contact resolution rate is a unique metric, because it provides guidance concerning end-user satisfaction, service desk efficiencies and service support cost optimization. When combined with cost-efficiency metrics such as cost per agent handled contact, IT leaders can gain a better understanding of the required balance between cost and quality.

Looking only at transforming the business, telecommunications also devoted, on average, the highest percentage of IT spending to this category, at 17%. Software publishing and Internet services, media and entertainment, and utilities devoted 16%. This indicates that these industries endeavor to drive new revenue, enter new marketplaces or create new business models with the aid of IT.

Click the "Take the Survey" link above, participate in a brief survey on the topic and download your complimentary IT Service Desk metrics summary report from Gartner today!

Published on: May 7, 2012

Healthcare Strategic IT Spend Jumps to 35% of IT Budget

Complete a short survey and receive a free IT Spending and Staffing summary report containing vertical industry specific and cross industry IT metrics from Gartner.

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The distribution of IT spending to "run," "grow," and "transform" the business provides a view of the IT investment profile to support business performance.

Sixty-five percent of a healthcare provider's IT budget is spent on basics, down from 71% the previous year. This reduction in "run the business" IT costs enabled an increase in IT spending focused on business growth and transformation. Healthcare providers increased their IT spending to grow the business from 16% of total IT budget to 20%, while also increasing transform the business spending to 15% from 13%.

Subtle hints of an industry's IT investment profile can be seen in a higher percentage of IT spending devoted to grow and transform activities, which comes at the expense of the run category from a percentage perspective. For example, the state/local government sector shows the lowest level of investment in grow and transform activities which, combined with the almost flat levels of IT spending, reflect the tightened financial situation that many public sector organizations find themselves in -- it becomes harder to justify new IT investment while other essential services are being cut. Education and national/international government sectors are also showing lower investment levels in grow and transform spending.

Telecommunications companies showed the highest grow/transform percentage at 45%, followed by software publishing and Internet services at 42%. The aim of transform levels this high is to drive revenue growth or achieve significant productivity improvements.

Looking only at transforming the business, telecommunications also devoted, on average, the highest percentage of IT spending to this category, at 17%. Software publishing and Internet services, media and entertainment, and utilities devoted 16%. This indicates that these industries endeavor to drive new revenue, enter new marketplaces or create new business models with the aid of IT.

Click the "Take the Survey" link above, participate in a brief survey on your organization's IT Budget and download your free IT Spending and Staffing metrics summary report!

Published on: April 23, 2012

What Consumes 24% of Your Application Development Project Life Cycle?

Identifying where your time and effort are spent on a development project can increase your opportunities for targeted improvements. Receive a complimentary Gartner IT Key Metrics Data 2012: Application Development summary report in exchange for completing a short survey.

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Complimentary Metrics Include:
  • Application Development Spend Distribution
  • Application Development Spend to Run, Grow & Transform the Business
  • Application Development Life cycle Distribution
  • Development Practices: Use of a Formal Software Process Assessment
  • Development Practices: Project Methodology Used

Best in class organizations maintain constant visibility into their application development project life cycles to better understand where time and effort are spent so they can increases their opportunities for targeted improvements. While 24% of a development project life cycle is consumed by "Development Time and Unit Testing," project "Design" and "Requirements Analysis and Management" efforts together, consume 29% of the project life cycle.

Development Time and Unit Testing: Includes activity that translates the result of the detailed design activity into a working program in a given language or languages and unit testing plan and tests. All effort necessary for data migration or maintenance of other applications is collected in the Training and Other section. All effort associated with supplemental activity because of the identification of defects during testing is collected in the Defect Removal section.

Requirements Analysis and Management: Includes analysis and management of the business requirement specifications, which includes definitions of what the user requires in a precise, full and consistent manner, identification of the functions to be carried out, the conditions of operation and use, the performances and acceptance criteria.

Design: Includes external design of the software architecture and scope of the application in technical terms. The external design file includes a description of the functions to be carried out, the architecture that is closest to meeting these various functions, a justification of the options and a logic that guarantees the feasibility of the chosen solution. Phases associated with external design that are captured here include general specification, choice of architecture, prototyping, modeling and call for bids. This also includes detailed design specifications of the preliminary external design, both on an algorithmic level and on a data structure level, to a sufficient level that allows coding to begin.

For more information participate in a brief survey on your Development environment and download your complementary Application Development metrics report.

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