The most substantial IT key figures in benchmarking: the key to optimising your IT performance

Digitalisation is presenting companies with ever greater challenges. Having an effective (IT) strategy is crucial in order to remain successful and competitive in the long term. In this field, IT benchmarking offers an opportunity to objectively assess the performance of your IT infrastructures, applications and processes and to improve them in a targeted manner. In this article, you will find out which IT key figures are particularly interesting in IT benchmarking.

But before we go into the importance of the right IT key figures in benchmarking and present them in detail, let us briefly clarify what we at the BAMAC GROUP mean by IT benchmarking.

What is IT benchmarking?

IT benchmarking is a methodical approach in which a company’s IT performance is compared with that of other, usually leading, companies. The aim is to evaluate a company’s own IT processes, identify weaknesses and adopt best practices. This comparison enables companies to measure and continuously improve their IT performance.

The importance of the right IT key figures

In other words, IT benchmarking enables companies to make informed decisions based on objective data. By comparing themselves with the best in the industry, companies can identify inefficient areas and make targeted improvements. This not only leads to cost savings, but also to a better alignment of IT with business requirements.

It should be noted that it is not only necessary to agree on meaningful key figures in order to achieve a true comparison. It is also essential to be able to read these key figures. For example, a low value for IT costs as a percentage of revenue does not automatically mean that IT is effective and efficient. Rather, it may be due to a reluctance to invest in new, more modern IT applications. For this reason, we will look at some of the most meaningful key figures for IT benchmarking below.

The most substantial IT key figures in benchmarking

IT expenses as a percentage of revenue (IT cost as % of revenue)

This aforementioned key figure is often used to clarify the current situation and for decision-making. After all, it is easy to understand and seemingly simple to calculate. However, caution is required: As indicated above, a low value can indicate both high efficiency and an inadequate IT investment. This is why best-in-class companies either orientate themselves towards the lower end of the spectrum, if IT is merely seen as a means to an end, or towards the upper end, if IT is an important factor for turnover and success.

IT expenditure for Run, Grow and Transform

The split of IT expenditure into run, grow and transform costs shifts the focus from the pure management of day-to-day business (run) to growth and transformation activities. In our consulting practice, we clearly see a trend towards a reduction in the run share with a simultaneous increase in the transform share of IT costs. This change indicates an increasing focus on innovation and transformation.

Availability of core systems during critical times

This key figure measures the availability of core systems at critical times, such as the year-end closing or other busy periods, and shows the stability of the system under pressure. In order to maintain a balance between costs and benefits, many companies define variable availabilities for their IT systems. Higher availability is often required during business-critical phases.

Share of offshore and nearshore in total person-days

This key figure shows the ratio of nearshore and offshore resources to total IT performance. Standardised tasks in IT operations and application development are often outsourced to low-cost nearshore and offshore capacities. This enables companies to reduce costs and concentrate on strategic core tasks.

Customer satisfaction

IT customer satisfaction comprises various key figures that serve as a feedback loop for IT decisions and services. One example is the Net Promoter Score, which indicates how likely it is that IT services will be recommended to others. These key figures help to recognise trends and problems at an early stage and support IT demand management.

Share of the cloud in the IT infrastructure

The cloud share in the IT infrastructure (servers, storage) shows the progress of cloud integration. A larger cloud share is not automatically better, but must be evaluated in the context of the corporate strategy.

Support ratio (users per support employee)

This key figure indicates how many end users are supported by a support agent. Efficient companies achieve values of over 600 supported users per agent. Automation and self-service have significantly improved the support ratio of many companies in recent years.

Daily rates for IT services

The costs of external IT staff and the daily rates for various skills and roles are crucial for budget planning. Market price analyses and rate card models support the optimisation of these costs. The following applies: the cheapest provider is not always the best choice.

Further key figures in IT benchmarking

Of course, other key figures can also be compared in IT benchmarking. In this article, we have presented the most meaningful key figures based on our many years of experience. Please contact us for detailed advice!

Find out why you should know your location and the basic benefits of IT benchmarking. If you want to dive deeper into the topic of IT benchmarking, we have an IT benchmarking case study for you!