The most important IT KPIs for 2025: How to measure your IT performance effectively

Even at the risk of repeating ourselves, the fact remains that in 2025, IT will become the nervous system of the company in the age of digital transformation and its performance will therefore be a key success factor. If you want to ensure the efficiency, availability and cost-effectiveness of IT, data-supported analyses are essential. IT key performance indicators (KPIs) help to create transparency, identify optimisation potential and make well-founded decisions. But which KPIs will be particularly relevant in 2025? In this article, we present the most important IT KPIs and show you how you can optimise their use in your IT performance management.

IT as a value driver: more than just a cost centre

Modern IT must not only be seen as a cost factor, but also as a strategic value driver for the company. High-performance IT increases innovative strength, improves the customer experience and creates new business opportunities. IT KPIs should therefore not only measure efficiency and stability, but also visualise the added value of IT for the company.

igh-performance IT operations are largely based on recognising and analysing performance deviations at an early stage, even before they have an impact on the company’s success. A practical example illustrates this:

At one of our customers, the performance of an internal, business-critical application dropped slightly within a short period of time. This went unnoticed by the employees. However, this change became visible on the IT team’s IT dashboard. Targeted analyses revealed that an unauthorised software installation within a business unit had led to an unexpected system load. Although no serious disruptions occurred initially, early identification enabled the IT team to take countermeasures before significant disruptions occurred that would have had an impact on business operations and sales.

As you can see, by continuously monitoring the right KPIs and using modern IT reporting tools, companies can actively influence their IT performance and minimise risks at an early stage. Data-driven, forward-looking IT management is crucial to ensure stability, efficiency and scalability in the long term. But which KPIs measure your IT performance effectively?

IT KPIs for internal employees vs. IT KPIs for end customers

A key aspect of IT performance management is the distinction between IT KPIs for employees and IT KPIs for end customers. Both groups have different requirements for IT systems, and inefficient processes have different economic effects.

IT KPIs for employees: The performance of internal systems has a direct impact on the productivity of the workforce. Let’s take the example of an insurance company where an employee processes damage reports on a daily basis. If internal software works slower than necessary and only takes 1 minute longer per claim, this results in considerable costs due to lost working time:

• Per working day: 3,000 additional minutes (50 hours) for 100 employees in claims settlement
• Per working week: 15,000 additional minutes (250 hours)
• Per working year: 750,000 additional minutes (12,500 hours)

This equates to more than 520 additional working days per year caused by inefficient IT processes alone – a considerable economic loss. By optimising internal applications, companies can not only increase employee satisfaction, but also achieve significant savings.

IT KPIs for end customers: The performance and availability of online services are crucial for customers. A slow website or app can have a direct impact on sales and customer satisfaction. Studies show that any delay of more than 3 seconds in the loading time of a website leads to a significant drop in the conversion rate. In addition, poor performance increases the likelihood that customers will contact support instead of resolving their concerns independently using self-service functions. This leads to a double burden: on the one hand, higher costs are incurred for customer support and, on the other, the company may lose potential sales.

The most important IT KPIs for 2025

1. system availability (uptime): Ensuring stable IT operations

System availability is a decisive KPI for IT performance and indicates how often IT systems are available without interruption. High downtimes can cause considerable financial and reputational damage. Likewise, maximising uptime and creating a user-friendly IT environment are essential to ensure efficiency and productivity without losing sight of risks and costs.

This goes hand in hand with service availability: this KPI focuses on the service provided by the IT department. Adherence to schedules and service promises is a key indicator of the IT department’s performance and reflects the extent to which defined standards and expectations are met. The avoidance of service failures and the continuous optimisation of critical systems contribute significantly to the stability and reliability of the IT infrastructure.

Proactive measures are essential to ensure maximum availability. These include the use of redundant servers, automated error detection and an effective monitoring system. Regular maintenance outside of peak usage times and rapid troubleshooting also contribute to stability.

2. first call resolution (FCR): quality of IT support

First Call Resolution, or FCR for short, indicates how many IT queries can be resolved on the first contact with support. A high value indicates high service quality and efficiency of IT support.

Ways to improve this include the creation and provision of detailed knowledge databases and self-service portals. Regular training of IT support staff and the use of AI-supported chatbots for initial diagnosis also help to increase the FCR.

3. mean time to resolve (MTTR): efficiency of IT support processes

The Mean Time to Resolve, or MTTR for short, measures the average time it takes to resolve IT problems. A low MTTR means that the IT support team is working efficiently and faults are resolved quickly.

In this case, the use of automated ticket systems for error recording and processing as well as AI-supported error analysis and self-service options for employees have proven their worth. Continuous training and standardisation for IT support teams also improve this key figure.

4. change success rate: measuring the success of IT implementations

As the name suggests, this KPI indicates how successfully changes to IT systems are implemented without causing unexpected problems. A high rate means that IT teams implement changes stably and efficiently. Establishing structured change management processes, carrying out risk assessments and tests before going live, as well as the reliable and consistent implementation of feedback and improvement mechanisms after each change, are among the methods used to maintain or improve this KPI at a high level. If new digital technologies can be implemented smoothly, this is not only an indirect indication that IT investments are worthwhile because integration does not hinder business processes. This KPI also indicates that new digital services such as AI-supported consulting tools or similar can open up additional sources of revenue.

Practical example: A financial services provider planned the introduction of a new online banking portal. Thanks to a structured change management strategy with intensive testing, the changeover took place without any major disruptions. Result: 98% successful system changes without critical failures. Increase in user numbers by 15 % within the first three months.

5. performance of online applications:

The performance of online applications measures the loading and rendering times of software and cloud apps. Fast response times are crucial for an optimal user experience and high work efficiency. The performance of online applications has a direct impact on customer satisfaction, employee productivity and ultimately sales. Companies that make targeted optimisations in this area not only increase IT efficiency, but also open up new business opportunities.

Various measures are suitable for improving performance. These include the optimisation of server and network capacities, the use of content delivery networks (CDNs) and efficient caching. Regular load tests and the use of performance monitoring tools also help to recognise and eliminate bottlenecks at an early stage.

Practical example: An e-commerce company discovered through monitoring that the loading times of its online shop increased by 20% at peak times. This led to higher bounce rates and loss of sales. By using a content delivery network (CDN) and targeted caching, the loading time was reduced by 30%. The result: more completed purchases and a 12% increase in sales – direct business added value through optimised IT performance.

Overall, it can be said that faster and more stable online platforms enable companies to establish new digital business models, e.g. real-time personalisation for customers or the expansion of international markets, without technical hurdles slowing down growth.

6. IT cost ratio: Evaluating the efficiency of IT investments

Even though we repeatedly emphasise that the benefits and value of IT should not be assessed solely in terms of costs, this does not mean that costs do not play a role. The IT cost ratio puts the total IT costs in relation to the company’s total turnover. It is a decisive indicator for the economic efficiency of IT and helps to control budgets in a targeted manner. The aim is to stay within budget while maximising technical performance. By implementing IT cost control strategies, organisations can achieve better cost transparency, which not only leads to optimised use of resources, but also to well-founded decision-making processes. The IT cost ratio shows how efficiently IT investments are utilised in relation to company turnover. A low IT cost ratio with high performance means that IT is operating efficiently and utilising resources strategically.

At the same time, however, the IT cost ratio is a relatively rough indicator that only provides limited information about the efficiency or business benefits of IT. A falling IT cost ratio can have various causes. On the one hand, it can be a sign of increased efficiency if, for example, costs are reduced through automation or cloud utilisation without affecting business operations. On the other hand, savings in the wrong place can lead to a reduction in innovation and growth potential.

It should therefore be combined with other KPIs. Important supplementary key figures are

• Return on IT Investment (ROIT): What measurable economic benefits result from IT investments?
• Business value contribution: To what extent do IT initiatives contribute directly to sales increases or cost savings?
• IT costs per employee or customer: Are the IT costs optimised in relation to the size of the company?

Another critical aspect is the interpretation of the IT cost ratio in the context of the company as a whole. If the IT cost ratio alone falls, this does not automatically mean greater efficiency. For example, if both IT costs and turnover fall in the same proportion, the IT cost ratio remains unchanged – a fact that says little about the actual IT performance.

Reasonable targets for the IT cost ratio

As you have seen, there are risks involved in defining the IT cost ratio purely as a target figure. Companies that reduce their IT expenditure in order to achieve a certain value could lose out on innovation and business opportunities. It should therefore be seen more as a control parameter that is linked to other KPIs. Useful questions in this context are:

• IT cost ratio vs. business impact: Are IT costs being reduced without negatively impacting business growth or customer satisfaction?
• IT budget vs. innovation rate: Does an appropriate proportion of the IT budget flow into new technologies and competitive advantages?
• IT investments and increased productivity: To what extent does IT expenditure support the growth of the company?

Optimisation instead of pure cost reduction

Sensible utilisation of the IT cost ratio shows how IT investments have a positive impact on the business and create long-term competitive advantages. A strategic focus is better than simply setting a target such as ‘The IT cost ratio must fall’: ‘The IT cost ratio should be optimised while at the same time increasing innovative strength and productivity through IT.’ This ensures that cost efficiency is not achieved at the expense of growth and innovation.

The most common measures to increase cost efficiency include the automation of routine tasks, the increased use of cloud services and the optimisation of existing hardware and software. In addition, regular benchmarking analyses with competitors and the division of costs into strategic and operational IT expenditure are essential to ensure balanced management of IT budgets.

Through data-driven, forward-looking IT management, companies can actively influence their IT performance, recognise risks at an early stage and ensure long-term stability, efficiency and scalability.

Further KPIs for measuring IT performance

In addition to the KPIs already presented, there are other important key figures for measuring IT performance. These KPIs help to evaluate the stability, efficiency and user-friendliness of IT services. Through continuous monitoring and optimisation, failures can be minimised and service quality improved.

Error rate: The frequency of errors and failures in systems or applications. Low error rates are an indicator of high reliability and quality of IT services.

Network utilisation: The volume of data traffic compared to the maximum network capacity. Optimum network utilisation ensures stable and fast communication.

User satisfaction: User satisfaction with IT services, measured through surveys and feedback. High user satisfaction indicates that the IT services fulfil or exceed expectations.

Conclusion: IT KPIs as a management tool for efficient IT

An effective KPI system enables companies to continuously monitor IT performance, identify weaknesses and take targeted measures to optimise IT operations. IT KPIs are much more than just measured values – they serve as a strategic management tool to optimise IT performance in a targeted manner and make the added value of IT visible for the entire company. By using suitable KPIs, companies can reduce costs, improve service quality and minimise IT risks. In addition, a holistic view of various KPIs enables end-to-end control, through which IT processes can be optimally coordinated and efficiently managed across all areas.

In addition to regularly reviewing the performance of IT KPIs, it is also necessary to set benchmarks with the competition and make data-driven decisions.

Data-supported IT performance management makes it possible to make informed decisions, control costs and sustainably improve the quality of IT services, both for internal business processes and for your end customers. Those who consider IT KPIs not just as pure reporting values, but actively use them for control purposes, create an IT environment that drives innovation, successfully shapes digital change and thus creates a real competitive advantage.

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