What is a good IT budget/revenue relation in percentage?

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CIO in Healthcare and Biotech, 5,001 - 10,000 employees
I would say about 3 to 5%.
Director in Manufacturing, 1,001 - 5,000 employees
Our target was always under 2% of revenue and in some areas under 1%
For total IT it was 1.8% of revenue in a normal year.

It’s highly dependent on the type of business and it’s maturity
Director in Manufacturing, 1,001 - 5,000 employees
This is highly dependent on the type of business.  When I worked for a $1 billion sized engineering firm our IT budget was 3% of revenues.  Our employee base had a very high percentage of engineers and PhD chemists doing research.   Once we were purchased by a much larger $40billion dollar company our target was 2%, then 1.8%, then ... you know how it goes, to 1%.   However averaged across the company that wasn't that bad because a large percentage of the 130k employees were factory workers who didn't have assigned PC's.   I think around 60k at most had PC's.    If we were a small manufacturing company, that didn't do a lot of new engineering 1% of revenues would be very very generous.  If it was a brand new company, innovating a lot, with a high percentage of high cost talent and engineering staff, then 5% or higher might be very reasonable, or even low if you were a software company.
CIO in Manufacturing, 1,001 - 5,000 employees
It depends on how tech mature the industry is ,from what I have seen it’s rarely above 5% and should not be below 2% , this provides a balance between strategic investments, operational needs and innovation.
CEO in Services (non-Government), Self-employed
Varies by industry, company size, country, and strategic outcomes to be delivered. In large mfg enterprise leveraging on technology for competitive advantage it was 6% during periods of growth (planned M&A) but 3.5% thereafter.

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Less than 1%9%

1 - 3%48%

3 - 5%24%

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We've basically had to absorb the cost and figure out how to defer other less important initiatives.
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