Figure 1. Demographics: Key Industry Measures, Distribution by Industry, 2010...................................

11
Figure 2. Demographics: Key Industry Measures, Distribution by Region, 2010....................................12
Figure 3. IT Spending Percent Change, by Industry, 2009-2010...........................................................17
Figure 4. IT Spending Percent Change, by Region, 2009-2010............................................................18
Figure 5. IT Spending as a Percent of Revenue, by Industry, 2010.......................................................19
Figure 6. IT Spending as a Percent of Revenue, by Region, 2010.........................................................20
Figure 7. Agility: Revenue Percent Change vs. IT Spending Percent Change, 2009-2010.....................21
Figure 8. IT Spending as a Percent of Operating Expense, by Industry, 2010.......................................23
Figure 9. IT Spending as a Percent of Operating Expense, by Region, 2010.........................................24
Figure 10. Agility: Operating Expense Percent Change vs. IT Spending Percent Change, 2009-2010...25
Figure 11. IT Spending per Employee, by Industry, 2010......................................................................27
Figure 12. IT Spending per Employee, by Region, 2010.......................................................................28
Figure 13. IT Spending as a Percent of Revenue vs. Operating Profit, 2010..........................................29
Figure 14. IT Spending Percent Change, by Industry, 2010-2011.........................................................30
Figure 15. IT Spending Percent Change, by Region, 2010-2011..........................................................31
Figure 16. Spending Behaviors: Regional Distribution of Spending Changes by Type, 2010-2011........32
Figure 17. Spending Behaviors: Regional Average Spending Changes, by Type, 2010-2011...............33
Figure 18. IT Spending as a Percent of Revenue, by Industry, 2011 (Projection)...................................34
Figure 19. IT Spending as a Percent of Revenue, by Region, 2011 (Projection).....................................35
Figure 20. IT Spending as a Percent of Operating Expense, by Industry, 2011 (Projection)...................36
Figure 21. IT Spending as a Percent of Operating Expense, by Region, 2011 (Projection).....................37
Figure 22. IT Spending per Employee, by Industry, 2011 (Projection)....................................................38
Figure 23. IT Spending per Employee, by Region, 2011 (Projection).....................................................39
Figure 24. IT Operational vs. Capital Spending, 2006-2010..................................................................40
Figure 25. IT Operational vs. Capital Spending, by Region, 2010..........................................................41
Figure 26. IT Spending to Run, Grow and Transform the Business, 2006-2011....................................42
Figure 27. IT Spending to Run, Grow and Transform the Business, by Region, 2010...........................45
Figure 28. Business Value Category Decision Tree...............................................................................46
Figure 29. Distribution of IT Spending on Hardware, Software, Personnel and Outsourcing, 2010........48
Figure 30. Distribution of IT Spending on Hardware, Software, Personnel and Outsourcing, by Region,
2010....................................................................................................................................................49
Figure 31. Distribution of IT Cost by Technology Domain, 2006-2010...................................................50
Figure 32. Distribution of IT Cost by Technology Domain, by Region, 2010..........................................51
Figure 33. IT FTEs as a Percent of Employees, by Industry, 2010.........................................................53
Figure 34. IT FTEs as a Percent of Employees, by Region, 2010..........................................................54
Figure 35. Distribution of IT FTEs: Insourced vs. Contractor, by Industry, 2010.....................................55
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Figure 36. Distribution of IT FTEs: Insourced vs. Contractor, by Region, 2010......................................56
Figure 37. Distribution of IT Staff by Technology Domain, 2006-2010...................................................57
Figure 38. Distribution of IT Staff by Technology Domain, by Region, 2010...........................................58
Analysis
Overview
How Does Your IT Organization Stack Up Against the Competition?
IT and business leaders are constantly dealing with dynamic market conditions, wherein the
business is evolving and technology is changing. Gartner IT Key Metrics Data (ITKMD), which is
published annually, provides insight into the latest industry trends to help enterprises change, make
fact-based decisions and answer key questions similar to these:

Are you measuring the alignment between business and IT?

Are your staffing and investment levels competitive in infrastructure and operations?

Are you managing your technology performance?

Can you prove the success of current and future IT investments?

This research provides an overview of the key findings on spending and staffing trends from leading
organizations around the world.
Depending upon your subscription level for Gartner services, you may have access to more detailed
information that is specific to individual ITKMD vertical industries (see Table 1 and Related
Research).
Gartner, Inc. | G00210146 Page 5 of 70
Table 1. Key Industry Measures: Vertical Industry Document Index, ITKMD
Document Current Year Multiyear
Cross-Industry Current Year Multiyear
Banking and Financial Services Current Year Multiyear
Chemicals Current Year Multiyear
Construction, Materials and Natural Resources Current Year Multiyear
Consumer Products Current Year Multiyear
Education Current Year Multiyear
Energy Current Year Multiyear
Food and Beverage Processing Current Year Multiyear
Government National and International Current Year Multiyear
Government State and Local Current Year Multiyear
Healthcare Providers Current Year Multiyear
Industrial Electronic and Electrical Equipment Current Year Multiyear
Industrial Manufacturing Current Year Multiyear
Insurance Current Year Multiyear
Media and Entertainment Current Year Multiyear
Pharmaceuticals, Life Sciences and Medical Products Current Year Multiyear
Professional Services Current Year Multiyear
Retail and Wholesale Current Year Multiyear
Software Publishing and Internet Services Current Year Multiyear
Telecommunications Current Year Multiyear
Transportation Current Year Multiyear
Utilities Current Year Multiyear
Source: Gartner ITKMD (January 2011)
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Research Project and Background
The information contained in this research was leveraged from the Gartner ITKMD program that was
established in 1995 to support the strategic IT investment decisions of a G8 nation. Today, ITKMD
is delivered online in an annual Gartner publication series of more than 2,000 metrics across 92
documents to allow you to rapidly identify high-level IT spending, staffing and performance trends
across 21 different industries, as well as by technology area.
In an ongoing effort to study, analyze, evolve and improve enterprise performance, Gartner drives a
number of initiatives to continuously capture IT data and information from the Gartner client
community to support the growth of our database, our industry insight and our published IT metrics
series. We invite you to participate in and contribute to the ITKMD Industry Measures study to
represent your vertical industry and region. The Gartner client community provides an exemplary
window into the global IT community, and, therefore, your participation is essential to this
publication series.
Click here to participate in the 2011 Key Industry Measures study.
Using This Research
This research was created to help IT and business leaders compare the investment levels of their
enterprise IT spending with that of similar industry organizations. As with any published data, many
potential interpretations and analyses exist. The dataset represents a mix of organizations of
different sizes and vertical industry segmentations.
The industry-specific spending profiles published here represent key metrics data collected directly
from CIOs, CTOs, IT leaders and practitioners with respect to their organizations' IT investment
levels and future IT budgets. Most IT organizations follow an annual IT budgeting process and
adjust their budgets based on changing economic and business conditions. In many organizations,
IT spending levels are reviewed and revised on a quarterly or even monthly basis. Therefore,
published IT spending benchmarks represent a "snapshot in time," but do not necessarily indicate
what enterprises will ultimately spend on IT in the coming year.
Although the published figures represent what Gartner calls a "stalking horse" (that is, a position
resulting from analysis of data that represents trends and results), each organization should assess
its own situation carefully, and should not arbitrarily change to conform to published results (which
do not necessarily represent best practices). For example, the metric of IT spending as a percent of
revenue does not, by itself, provide valid comparative information that should be used to allocate IT
or business resources. Moreover, IT spending statistics alone do not measure IT effectiveness and
are not a gauge of successful IT organizations. They simply provide an indicative view of global
investment levels for the market in general.
While the industry-specific spending metrics published here and in other research provide a high-
level overview of spending priorities, many organizations feel the need to "go deeper" when
benchmarking. Many firms decide that a formal benchmarking exercise one that is highly
customized and prescriptive for the individual firm is a natural follow-on to using the results
presented in this research and in Gartner ITKMD publications. In such exercises, companies can be
Gartner, Inc. | G00210146 Page 7 of 70
more assured that they are getting an "apples to apples" benchmark with a comparable peer group,
and that the benchmark takes into consideration complexity, industry, enterprise size, platforms,
applications and other key variables.
Gartner recommends that organizations consider an investment in such customized or in-depth
benchmarking engagements to support the budget cycle, or whenever they make significant IT-
cost-based decisions. The information published in this research can be used during the time
periods in between these benchmark engagements.
For more information on Gartner Benchmark Analytics, contact your Gartner account executive or
e-mail .
Points of Clarification
Gartner's ITKMD: Key Industry Measures publication series looks at IT spending from a "cash view"
perspective, in that IT spending is defined as "the total of the IT operating budget (excluding
depreciation and amortization), plus IT capital expenditure (capex) for the current year." This view
allows organizations to understand the current year's cash outlay based on current-year
management plans and future-state strategy objectives. Many organizations monitor IT spending
results using what is sometimes called the "book view" or "accounting view," which represents the
IT operating expenditure (opex) budget, including current depreciation (the allocation of prior years'
IT capitalized expenses, which the company records on its books for the current year). Capital
budgets for the year in this accounting-based view are typically collected and reported separately.
While this accounting view is helpful in outlining the annual cost of IT, it does not accurately reflect
the current strategy (and the reflective investment decisions) because depreciation represents
decisions made in the past. In this research, the ratio of IT operating vs. capital spending is
provided so that detailed comparisons can be made.
Although Gartner publishes worldwide vertical-industry-specific IT spending and staffing metrics,
ITKMD does not publish metrics by vertical industries within key geographic regions because
previous research has shown that spending patterns are broadly similar by vertical market across
regions. So, for example, financial services tend to spend a relatively high percentage of revenue
compared with other vertical industries, whether the company is in Europe, Asia/Pacific or North
America.
It should be noted that IT spending as a percent of revenue in the ITKMD is calculated on the basis
of the current year's IT spending (budget) divided by the previous year's stated revenue. The
calculation is made in this way because the current year's financial data is typically not available at
the time of publication, while the IT spending/budget data is available. Also, the IT budget for a
future year is based on experience from the current year.
Changes and Updates to Vertical Industry Classifications
During the course of 2010, Gartner reviewed and updated our ITKMD vertical industry definitions to
better reflect how organizations define their industries. For many industries, this has not resulted in
a significant change to the subcategories we include; rather, it only adds a more comprehensive
definition. Therefore, we recommend checking the individual industry definitions to understand what
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specific subcategories are included. In making these changes, Gartner has also reviewed and
updated our historical data to match the new industry definitions; therefore, some of the values may
have changed from those that were previously published in the multiyear documents to reflect the
new industry classification. See "IT Key Metrics Data 2011: Definitions of Industries" for a
comprehensive definition of all vertical industries published in the ITKMD series.
Gartner IT Key Metrics Data (ITKMD) Series
Depending upon your subscription level for Gartner services, some clients have access to the
Gartner ITKMD publication series via the link at gartner.com (Quick Links, Tools and Metrics, IT Key
Metrics Data).
ITKMD is part of the Gartner Benchmark Analytics range of solutions, and offers a macrolevel look
at Gartner's global database of comprehensive cost and performance measures. ITKMD provides
you with immediate access to authoritative data on IT staffing and investment levels, as well as key
technology cost and performance metrics. These metrics enable improved budget and investment
decisions with regard to the changing environments of business and IT.
The ITKMD annual publication series contains more than 2,000 IT metrics published by way of 92
Gartner Benchmark Analytics research notes. In addition to the key IT financial metrics in this
research, a variety of IT productivity and staffing metrics are available in the areas listed below.
Some reports show vertical industry tendencies, while others tend to be cross-industry
perspectives. Many of the metrics show averages by revenue scale or size of IT infrastructure
environment supported (e.g., number of servers or number of desktops/laptops).
These key metrics reports are broadly defined by five key areas of the IT portfolio:

Key Industry Measures

Enterprise-level total IT spending and staffing metrics across 21 vertical industries,

including current-year and multiyear averages. Metrics based on enterprise size are often
provided.

Key Infrastructure Measures

Technology-domain-specific unit cost, productivity and performance measures for the IT

infrastructure environments, including current-year and multiyear averages for the
mainframe, Wintel server, Unix server, storage, client and peripheral support, IT help desk,
and data and voice network environments. Metrics by workload size are often provided.

Key Applications Measures

Application development and application support spending and staffing metrics, project
measures, life cycle phases, and productivity and quality measures (current year and
multiyear).

Key Information Security Measures

Enterprise-level total spending and staffing measures by industry and region.

Gartner, Inc. | G00210146 Page 9 of 70

Key Outsourcing Measures

Enterprise-level total spending and staffing measures by industry and region.

For a complete outline of all related published research in the series, see "IT Key Metrics Data 2011:
Index of Published Documents and Metrics."
ITKMD Source
Information for ITKMD is collected globally, year-round through direct fact-finding in our many
benchmarking and consulting engagements, through surveys of the Gartner community and at
Gartner events, in addition to surveys of non-Gartner-based communities. Financial information,
such as revenue and operating income, is also collected from secondary research sources, such as
annual reports.
Key Industry Measures Demographics
In 2010, Gartner collected enterprise-level total IT investment figures from 2,252 public and private
enterprises from more than 75 countries in 21 industry sectors (see Figure 1 and Figure 2). The
result is the most comprehensive and authoritative IT spending, staffing and performance data in
the industry.
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Figure 1. Demographics: Key Industry Measures, Distribution by Industry, 2010
2
2
2
2
3
3
3
3
3
4
4
4
4
4
5
5
7
7
8
11
14
0 2 4 6 8 10 12 14 16
Energy
Chemicals
Consumer Products
Telecommunications
Media and Entertainment
Food and Beverage Processing
Transportation
Industrial Electronics and Electrical Equipment
Pharmaceuticals, Life Sciences and Medical Products
Construction, Materials and Natural Resources
Healthcare Providers
Software Publishing and Internet Services
Industrial Manufacturing
Utilities
Government State/Local
Retail and Wholesale
Education
Government National/International
Insurance
Banking and Financial Services
Professional Services
Percentage of Respondents
Sample = 2,252
Source: Gartner ITKMD (January 2011)
Gartner, Inc. | G00210146 Page 11 of 70
Figure 2. Demographics: Key Industry Measures, Distribution by Region, 2010
6
7
31
56
0 10 20 30 40 50 60
Asia/Pacific
Latin America and Caribbean
EMEA
North America
Percentage of Respondents
Sample = 2,252
Source: Gartner ITKMD (January 2011)
For more information, see "IT Key Metrics Data 2011: Demographics."
Table 2 shows the average size of the organizations that responded in each industry (annual
revenue and number of employees).
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Table 2. Revenue and Enterprise Employees, by Industry (Averages)
Industry 2009 Revenue (Billions
of $)
2010 Employees
(Enterprise FTEs)
All Industries 5.6 13,074
Banking and Financial Services 5.5 12,142
Chemicals 4.4 6,802
Construction, Materials and Natural
Resources
4.8 12,678
Consumer Products 5.5 17,499
Education 0.6 4,345
Energy 37.2 18,967
Food and Beverage Processing 3.8 12,216
Government National/International
(Operating Expenses)
3.8 13,711
Government State/Local (Operating
Expenses)
1.7 6,672
Healthcare Providers 2.2 11,800
Industrial Electronics and Electrical
Equipment
9.3 26,234
Industrial Manufacturing 13.1 35,165
Insurance 6.3 6,294
Media and Entertainment 2.2 7,594
Pharmaceuticals, Life Sciences and Medical
Products
8.5 17,695
Professional Services 1.1 6,270
Retail and Wholesale 9.9 32,209
Software Publishing and Internet Services 3.5 10,539
Telecommunications 8.0 22,514
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