Gartner Research

IT Metrics: New Economic Rules of IT Spending and Staffing Metrics

Published: 19 September 2011

ID: G00217561

Analyst(s): Kurt Potter

Summary

CIOs and other IT leaders should use these nine new economic rules of IT spending and staffing metrics to build the right planning assumptions to remain viable and successful, and to avoid the risk of false economies from IT and business initiatives.

Table Of Contents
  • Overview

Analysis

  • Making the Decision to Be a Market Leader — Or Not
  • Focusing on a Different Part of the Value Equation Delivers the Same Results
  • New Rule No. 1: Many Large Market Leaders Spend More as a Percentage of Revenue
  • New Rule No. 2: Market Leaders Track IT Spending Against Strategic Planning Pillars
  • New Rule No. 3: Big Global Enterprises' IT Spending Metrics Are Alike, Regardless of Their Headquarters' Locations
  • New Rule No. 4: Productivity Improvements From IT Investments Should Yield a Higher Figure for IT Spending per Enterprise Employee
  • New Rule No. 5: Cost-Benefits From Cloud Computing Will Be Offset by Higher Consumption
  • New Rule No. 6: Centralization of IT Will Increase IT Spending in the Long Term Without the Accountability Created by Better IT Financial Management
  • New Rule No. 7: IT Goals Based Only on Benchmark Averages Will Produce Average Performance
  • New Rule No. 8: Mature Companies Should Increase IT Spending Less Than Average
  • New Rule No. 9: IT Management Costs Will Increase as IT Resource Costs Decline
  • The Convergence of IT Service Portfolios, External IT Services and Chargeback Processes

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