IT Outsourcing Expense as a Percentage of Total IT Expense

Benchmarking Report

IT Outsourcing Expense as a Percentage of Total IT Expense

This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring IT Outsourcing Expense as a Percentage of Total IT Expense. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.


What is IT Outsourcing Expense as a Percentage of Total IT Expense?

Total outsourcing-related expense incurred by the IT Department divided by the total expense incurred by the IT Department over the same time period, as a percentage.

Why should IT Outsourcing Expense as a Percentage of Total IT Expense be measured?

IT Outsourcing Expense as a Percentage of Total IT Expense measures the level of outsourcing that is utilized by the IT function to maximize the efficiency of its operations. A relatively high value for this KPI indicates that the IT Department may be understaffed or that the Department's employees do not have sufficient knowledge to handle a wide spectrum of IT projects or tasks. A high percentage of IT expenses dedicated to outsourcing can also negatively affect employee morale due to a feeling that their positions may be replaced by third-party vendors. While a low value is typically preferred for this KPI, IT outsourcing budgets are based on company strategy, and investment in IT outsourcing can help mitigate risk, shift employee focus to more strategic company goals and may help with cost savings in the long run.


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