ThisITBudgetreportwascreatedforJamieGuevaraon12Feb16.

Assessmentname:2016SampleITBudgetOutputReport

HealthcareProvidersverticalindustrycomparison

Tobesuccessfulwithdigitalbusinesstransformationandoptimization,CIOsandITleadersmustcommunicatethefinancialstoryofITusingmature
budgetingpracticesenabledbyactionablefinancialtransparency.TheITBudgettoolprovidesavehicletocompareITbudgetlevelstotheindustryas
wellastranslateITcostsintobusinessservices.
ITBudgetStructuredApproach
ThisreportcontainstotalITinvestment,costandstaffingcomparisonsagainstpublishedGartnerBenchmarkAnalyticsindustrystandardITmetrics.
ReferencestotheGartnerITKeyMetricsDatareferspecificallytotheGartnerBenchmarkAnalyticsResearchNote#G00291357,ITKeyMetricsData
2016:KeyIndustryMeasures:HealthcareProvidersAnalysis:CurrentYearandResearchNote#G00291328,ITKeyMetricsData2016:Executive
Summary.

SampleOrganiza onKeyMetricDataInput
SurveyrespondentdatainputsusedinthiscomparisonreportarenotvalidatedbyGartnerandarebasedonthefollowingusersubmitteddata.
ITkeymetricdatainputsorcomparisongroupscanbeupdatedusingthe"Copy"buttonontheGartnerITBudgetMyAssessmentspage.
http://www.gartner.com/explore/tools/itbudget

InputCurrency:USD 2015 2016 2017

Revenue 4,892,464,000 5,080,765,000
OperatingExpense 3,892,464,000 4,080,765,000
Employees 6,807 6,890
ITBudget*(CapEx+OpEx) 2016ITBudget 2017ITBudget 20162017%Change
ITSpending/Budget* 109,893,000 115,889,000 5.5%
ITBudget*byAsset/Resource
Hardware 13% 14% 13.6%
Software 14% 16% 20.5%
Personnel/Occupancy 49% 57% 22.7%
Outsourcing/ThirdPartyITServices 24% 11% 51.7%

ITBudget*byInvestmentClass
RuntheBusiness 70% 70% 5.5%
GrowtheBusiness 25% 15% 36.7%
TransformtheBusiness 5% 15% 216.4%
ITBudget**(OpEx+Depr.) 2016ITBudget 2017ITBudget 20162017%Change
ITAnnualCost/Budget** 97,015,000 104,448,000 7.7%
ITBudget**byITFunction
InfrastructureandOperations 59% 56% 2.2%
Applications 38% 41% 16.2%
ITMgt,Finance,Admin 3% 3% 7.7%
ITStaff 2016ITBudget 2017ITBudget 20162017%Change
ITFulltimeEquivalents(FTE) 360 380 5.6%
ITStaffbySource
InsourcedITFTE 86% 86% 5.6%
ContractITFTE 14% 14% 5.6%
ITStaffbyITFunction
InfrastructureandOperations 49% 49% 5.7%
Applications 46% 45% 4.9%
ITMgt,Finance,Admin 6% 6% 9.5%

Note:*ITspending/budgetincludesoperatingexpensespluscapitalinvestmentstorepresentITcashoutlay.**ITcost/budgetincludesoperatingexpensesplusdepreciationandamortizationexpensesto
representannualtotalcostofownershipofITfunctionalresourcesandITbusinessservices.

2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 1 / 25

 InsourcedITFTE 86% 86% 5.6%
ContractITFTE 14% 14% 5.6%
ITStaffbyITFunction
InfrastructureandOperations 49% 49% 5.7%
Applications 46% 45% 4.9%
ITMgt,Finance,Admin 6% 6% 9.5%

Note:*ITspending/budgetincludesoperatingexpensespluscapitalinvestmentstorepresentITcashoutlay.**ITcost/budgetincludesoperatingexpensesplusdepreciationandamortizationexpensesto
representannualtotalcostofownershipofITfunctionalresourcesandITbusinessservices.

Descrip onofComparisonGroup(s)
Yourorganizationhasbeencomparedtoaprimaryandsecondarycomparisongroup.Youhaveselectedyourprimarycomparisongroupas
organizationswithintheHealthcareProvidersverticalindustryasdefinedbelow.Asanadditionalpointofreference,youhaveselectedthe
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 2 / 25
NorthAmericaCrossIndustryAverageasasecondarycomparisongroup.

HealthcareProvidersverticalindustryoverview
 Descrip onofComparisonGroup(s)
Yourorganizationhasbeencomparedtoaprimaryandsecondarycomparisongroup.Youhaveselectedyourprimarycomparisongroupas
organizationswithintheHealthcareProvidersverticalindustryasdefinedbelow.Asanadditionalpointofreference,youhaveselectedthe
NorthAmericaCrossIndustryAverageasasecondarycomparisongroup.

HealthcareProvidersverticalindustryoverview
IndustryAverageSize:
Revenue: $3.16 BillionUSD
Employees: 18.7 ThousandEmployees

HealthcareProvidersverticalindustrydefinition
Organizationsfromwhichtheirprimaryrevenuestreamisderivedfromoneormoreofthefollowing:

HealthcareFacilities,AssistedLivingFacilitiesandServices,NursingHomes,RetirementCommunities,HospitalsandHealthcareCenters,
VeterinaryServicesandAnimalHospitals,HealthcareServices,DentalServices,HomeHealthcareServices,MidwiferyandChildBirth
PreparationServices,NursingServices,SpecialistServices,ChiropracticServices,OptometryServices,HealthcareReferralServices.
MedicalLaboratoryServices,MentalCareFacilities,RehabilitationServices,OccupationalTherapyServices,PhysicalTherapyServices,
SpeechandLanguageTherapyServices,MedicalPracticeOrganizations,PhysicianPracticeManagementCompanies,PrimaryCare
PractitionerServices,AmbulanceServices.

ITBudgetComparisonSummary
ThepurposeofthistoolistosupportyourorganizationsannualITbudgetprocess.Itprovidesastructuredandconsistentvehicletoeasily
compareyourorganization'sITbudgetandstafflevelsagainstGartnerITKeyMetricsDatapublishedindustryaverages.

NorthAmericaCross
SampleOrganiza on HealthcareProviders
Industry
2016 2017
IndustryAverages Averages
ITInvestmentMetrics ITBudget ITBudget
ITSpendingasa%ofRevenue 2.2% 2.3% 4.1% 3.5%
ITSpendingasa%ofOperatingExpenses 2.8% 2.8% 4.4% 4.4%
ITSpendingperEmployee(USD) $16,144 $16,820 $6,546 $14,261
ITSpending,byAccountingCategory
ITCapital 27% 26% 30% 27%
ITOperational 73% 74% 70% 73%
ITSpending,byAssetClass
Hardware 13% 14% 16% 15%
Software 14% 16% 28% 22%
Personnel/Occupancy 49% 57% 43% 43%
Outsourcing/ThirdPartyITServices 24% 11% 13% 20%
ITSpending,byStrategicCategory
RuntheBusinessITSpending 70% 70% 70% 69%
GrowtheBusinessITSpending 25% 15% 16% 19%
TransformtheBusinessITSpending 5% 15% 14% 12%
ITAnnualCost,byITFunctionalArea
DataCenter 31% 31% 20% 22%
EndUserComputing 12% 10% 9% 11%
ITServiceDesk 7% 6% 6% 7%
DataNetwork 5% 6% 7% 8%
VoiceNetwork 4% 3% 5% 6%
ApplicationDevelopment 23% 27% 15% 17%
ApplicationSupport 15% 14% 26% 18%
ITManagement 2% 2% 8% 7%
ITFinance&Administration 1% 1% 4% 4%
ITStaffing
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 3 / 25
ITFTEsas%ofTotalEmployees 5.3% 5.6% 2.6% 5.2%
ITStaffing,bySource
InsourcedFTEs 86% 86% 89% 83%
 HealthcareProvidersverticalindustrydefinition
Organizationsfromwhichtheirprimaryrevenuestreamisderivedfromoneormoreofthefollowing:

HealthcareFacilities,AssistedLivingFacilitiesandServices,NursingHomes,RetirementCommunities,HospitalsandHealthcareCenters,
VeterinaryServicesandAnimalHospitals,HealthcareServices,DentalServices,HomeHealthcareServices,MidwiferyandChildBirth
PreparationServices,NursingServices,SpecialistServices,ChiropracticServices,OptometryServices,HealthcareReferralServices.
MedicalLaboratoryServices,MentalCareFacilities,RehabilitationServices,OccupationalTherapyServices,PhysicalTherapyServices,
SpeechandLanguageTherapyServices,MedicalPracticeOrganizations,PhysicianPracticeManagementCompanies,PrimaryCare
PractitionerServices,AmbulanceServices.

ITBudgetComparisonSummary
ThepurposeofthistoolistosupportyourorganizationsannualITbudgetprocess.Itprovidesastructuredandconsistentvehicletoeasily
compareyourorganization'sITbudgetandstafflevelsagainstGartnerITKeyMetricsDatapublishedindustryaverages.

NorthAmericaCross
SampleOrganiza on HealthcareProviders
Industry
2016 2017
IndustryAverages Averages
ITInvestmentMetrics ITBudget ITBudget
ITSpendingasa%ofRevenue 2.2% 2.3% 4.1% 3.5%
ITSpendingasa%ofOperatingExpenses 2.8% 2.8% 4.4% 4.4%
ITSpendingperEmployee(USD) $16,144 $16,820 $6,546 $14,261
ITSpending,byAccountingCategory
ITCapital 27% 26% 30% 27%
ITOperational 73% 74% 70% 73%
ITSpending,byAssetClass
Hardware 13% 14% 16% 15%
Software 14% 16% 28% 22%
Personnel/Occupancy 49% 57% 43% 43%
Outsourcing/ThirdPartyITServices 24% 11% 13% 20%
ITSpending,byStrategicCategory
RuntheBusinessITSpending 70% 70% 70% 69%
GrowtheBusinessITSpending 25% 15% 16% 19%
TransformtheBusinessITSpending 5% 15% 14% 12%
ITAnnualCost,byITFunctionalArea
DataCenter 31% 31% 20% 22%
EndUserComputing 12% 10% 9% 11%
ITServiceDesk 7% 6% 6% 7%
DataNetwork 5% 6% 7% 8%
VoiceNetwork 4% 3% 5% 6%
ApplicationDevelopment 23% 27% 15% 17%
ApplicationSupport 15% 14% 26% 18%
ITManagement 2% 2% 8% 7%
ITFinance&Administration 1% 1% 4% 4%
ITStaffing
ITFTEsas%ofTotalEmployees 5.3% 5.6% 2.6% 5.2%
ITStaffing,bySource
InsourcedFTEs 86% 86% 89% 83%
ContractFTEs 14% 14% 11% 17%
ITStaffing,byITFunctionalArea
DataCenter 25% 25% 14% 16%
EndUserComputing 8% 7% 13% 11%
ITServiceDesk 7% 7% 10% 10%
DataNetwork 6% 6% 4% 5%
VoiceNetwork 4% 4% 3% 4%
ApplicationDevelopment 27% 28% 16% 22%
ApplicationSupport 19% 18% 28% 20%
ITManagement 4% 4% 7% 7%
ITFinance&Administration 1% 2% 5% 5%
Source:GartnerITKeyMetricsData2016

ITServicePor olio2017Plan
Page 4 / 25
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch.
ManyingredientsareinvolvedinfindingordeliveringthebusinessvalueofIThowever,Gartnerresearchshowsthatthreebestpracticescan
demonstratethevalueofITservices(see"ThreeKeyStepsAreNeededtoShowtheValueofITServices,"RN#G00267245).

DefineITservicesinthelanguageofthebusiness.
 DataNetwork 6% 6% 4% 5%
VoiceNetwork 4% 4% 3% 4%
ApplicationDevelopment 27% 28% 16% 22%
ApplicationSupport 19% 18% 28% 20%
ITManagement 4% 4% 7% 7%
ITFinance&Administration 1% 2% 5% 5%
Source:GartnerITKeyMetricsData2016

ITServicePor olio2017Plan

ManyingredientsareinvolvedinfindingordeliveringthebusinessvalueofIThowever,Gartnerresearchshowsthatthreebestpracticescan
demonstratethevalueofITservices(see"ThreeKeyStepsAreNeededtoShowtheValueofITServices,"RN#G00267245).

DefineITservicesinthelanguageofthebusiness.
Createvaluestatementsthattietheservicestobusinessoutcomes.
Identifymetricstomeasurethebusinessimpact.

2017 ITServicePortfolioBudget
ITExpense ITExpense
Distribution DistributionUSD
Total 100% 104,448,000
AutomatedFinancialReporting 15% 16,158,106
AutomatedHumanCapital
16% 16,523,674
Management
AutomatedOperations/Manufacturing 33% 34,008,269
AutomatedProcurement 15% 15,165,850
BusinessTransformation 10% 10,538,803
InformationTechnologyProvisioning 12% 12,053,299

ITKeyMetricsDataComparisonDetail
TotalITSpending/BudgetDeni on
Forthepurposeofthisresearch,Gartnerhasdefined"totalITspending"asthefollowing:
"Thebestestimateoftotalspendingattheendofthe12monthbudgetperiodforITtosupporttheenterprise.ITspending/budgetcancome
fromanywhereintheenterprisethatincursITcosts,anditisnotlimitedtotheITorganization.Itincludesestimatesbyenterpriseson
decentralizedITspendingandor'shadow'IT.Itiscalculatedonanannualized'cashflowview'basis,and,therefore,containscapitalspending
andoperationalexpenses,butnotdepreciationoramortization."

WhattheITSpending/BudgetIncludes,FromaResourceorCostPerspective
Hardware,software,personnel(includingcontractors,travel,benefitsandtraining),outsourcing(externalITserviceslikeconsulting,system
integration,dataandvoicetransmission,softwareasaservice,infrastructureasaservice,platformasaservice)disasterrecoveryand
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 5 / 25
occupancycostsassociatedwithsupportingITwithintheenterprise.Costsalsoincludealltaxes(exceptvalueaddedtaxwhereitisrecovered
orrefundedtotheorganization).
Note:Occupancycosts,includefullyburdenedcostsforthefacilitiesbeingusedbytheITstaffsupportingtheenterprise.Someexamples
includeofficespace,furniture,electricity,maintenance,propertytaxes,securityandofficesupplies.OccupancycostsforspacededicatedtoIT
 ITKeyMetricsDataComparisonDetail
TotalITSpending/BudgetDeni on
Forthepurposeofthisresearch,Gartnerhasdefined"totalITspending"asthefollowing:
"Thebestestimateoftotalspendingattheendofthe12monthbudgetperiodforITtosupporttheenterprise.ITspending/budgetcancome
fromanywhereintheenterprisethatincursITcosts,anditisnotlimitedtotheITorganization.Itincludesestimatesbyenterpriseson
decentralizedITspendingandor'shadow'IT.Itiscalculatedonanannualized'cashflowview'basis,and,therefore,containscapitalspending
andoperationalexpenses,butnotdepreciationoramortization."

WhattheITSpending/BudgetIncludes,FromaResourceorCostPerspective
Hardware,software,personnel(includingcontractors,travel,benefitsandtraining),outsourcing(externalITserviceslikeconsulting,system
integration,dataandvoicetransmission,softwareasaservice,infrastructureasaservice,platformasaservice)disasterrecoveryand
occupancycostsassociatedwithsupportingITwithintheenterprise.Costsalsoincludealltaxes(exceptvalueaddedtaxwhereitisrecovered
orrefundedtotheorganization).
Note:Occupancycosts,includefullyburdenedcostsforthefacilitiesbeingusedbytheITstaffsupportingtheenterprise.Someexamples
includeofficespace,furniture,electricity,maintenance,propertytaxes,securityandofficesupplies.OccupancycostsforspacededicatedtoIT
functions,suchasthedatacenter,includingpower/heatmanagementandraisedfloor/slabusingoverheadcabletrays,etc.,arealsoincluded.

WhattheITSpending/BudgetIncludes,FromanITFunctionalAreaorActivityPerspective
Thedatacenter(forexample,mainframes,serversandstorage),endusercomputingdevices(forexample,desktops,laptops,tablets,thin
clientsandsmartphones),voiceanddatanetworks(including,butnotlimitedto,voiceanddatatransmissions,fixedandmobiletelephony,and
Internetaccessservices),ITservicedesk,andapplications(forexample,developmentandsupport).
ITsupportfunctions,suchastheofficeoftheCIOsupervisorymanagementfinanceandadministrativecosts,suchaspurchasingasset
managementprocessmanagementandmarketingofITservices.
Dedicateddataprocessingequipmentusedinoperations,productionandengineeringenvironmentsexamplesarecomputeraided
design/computeraidedmanufacturing(CAD/CAM)andstandardcomputingequipmentusedindevicesforfactoryautomation,andtabletPCs
usedbyhealthcareprofessionals.

WhattheITSpending/BudgetDoesNotInclude
Costsfortechnologyorservicesthatareresold.Examplesincludesalariesfordevelopersinvolvedinbuildingcommerciallypackaged
software,orITskilledemployeeswhoprovideservicesfortheorganizations'externalclients.
Operationaltechnologythatis:
Equipmentbuiltorpurchasedfornondataprocessingpurposes,butwhichhascomputerizedcomponents.Examplesincluderobotic
manufacturingmachines,automatedtellermachines,specializedpointofsaledevices,scanners,bloodpressuremonitorsandsensorsona
supervisorycontrolanddataacquisition(SCADA)system.
Appliancelikeorproprietarydataprocessingequipmentthathasasingle(typicallyindustryvertical)purposeandcannotbeusedforother
generalpurposes.Atypicalexampleisacomputerthatcanonlycontroltheflowofelectricitythroughthepowergrid.Sinceitcannotbe
repurposed,itisnotincludedinourmodel.Notethatothersystemsthatgatherdatafromthistypeofcomputerandcanbeusedforother
purposeswouldnotbeconsideredoperationaltechnologyand,therefore,wouldbeinscopeofourmodel.
Depreciationoramortizationexpenses,whichcouldleadtodoublecountingfromanaccountingperspective.
Internal"crosscharges"andcorporateallocationsrelatedtolarge,significantand/orunusualonetimeexpenses,suchasreductionsin
workforce,redundancy,relocations,retirement,humanresourcesandchairperson'ssalary.
Businessdatasubscriptionsandservices(suchasBloomberg),eveniftheyaremanagedbytheITorganization.
Businessprocessoutsourcingservices(BPO)whereorganizationsoutsourceentirebusinessfunctionssuchaspayrollorbenefits
management.ThisincludescaseswheretheBPOvendorprovidesaccesstosoftware,andalsoguaranteesthattheoutcomesoftheir
serviceswillmeetbusinessrequirements,suchastaxandwithholdingregulations.Note:whereavendorprovidesSoftwareasaServiceand
onlyguaranteesthatthesoftwarewillperformasspecified,thenthisisinscopeoftheITspending/budget.TraditionaloutsourcingofIT
functions,forexampleserversandemail,arealsostillwithinthescopeofITspending/budget.

ITSpendingasaPercentofRevenue
ITspendingasapercentofrevenueisthemostrecognizedmeasureoftotalITinvestmentrelativetotoplinebusinessresults.
Thevalueofthismeasureisthatitassistsinidentifyingthecompetitivenessofinvestmentlevelsrelativetothemostfundamentalmeasureof
businessperformance:revenue.Whilethishasbeenviewedasamusthaveandreadilyavailablemetricformanyenterprises,common
misusesinclude:
Lookingatasingleyearratherthanmultiyeartrends
Basingdecisionsontheassumptionthatthisfigurewillnotchangeinthefuture,sometimesdramatically
Failingtounderstandandaddresschangesinthenumeratorandthedenominatorofthecalculation
Consideringjusttheaverageratherthantherangeofvaluesortheupperandlowerquartiles
ITspendingasapercentofrevenuealonedoesnothighlightwhyspendinglevelsareat,aboveorbelowaverage(whichareoften
misinterpretedas"good"or"bad"),nordoesitreflectIT'scontributiontobusinessperformance.Thus,ITspendingasapercentofrevenue
needstobeconsideredintandemwithotherITintensitymeasures,aswellasthecontextofbusinessobjectives,therateofchangeandthe
overallcircumstancesaffectingthenumerator,aswellasthedenominator,ofthecalculation.
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 6 / 25

ITSpendingasaPercentofRevenue
 Depreciationoramortizationexpenses,whichcouldleadtodoublecountingfromanaccountingperspective.
Internal"crosscharges"andcorporateallocationsrelatedtolarge,significantand/orunusualonetimeexpenses,suchasreductionsin
workforce,redundancy,relocations,retirement,humanresourcesandchairperson'ssalary.
Businessdatasubscriptionsandservices(suchasBloomberg),eveniftheyaremanagedbytheITorganization.
Businessprocessoutsourcingservices(BPO)whereorganizationsoutsourceentirebusinessfunctionssuchaspayrollorbenefits
management.ThisincludescaseswheretheBPOvendorprovidesaccesstosoftware,andalsoguaranteesthattheoutcomesoftheir
serviceswillmeetbusinessrequirements,suchastaxandwithholdingregulations.Note:whereavendorprovidesSoftwareasaServiceand
onlyguaranteesthatthesoftwarewillperformasspecified,thenthisisinscopeoftheITspending/budget.TraditionaloutsourcingofIT
functions,forexampleserversandemail,arealsostillwithinthescopeofITspending/budget.

ITSpendingasaPercentofRevenue
ITspendingasapercentofrevenueisthemostrecognizedmeasureoftotalITinvestmentrelativetotoplinebusinessresults.
Thevalueofthismeasureisthatitassistsinidentifyingthecompetitivenessofinvestmentlevelsrelativetothemostfundamentalmeasureof
businessperformance:revenue.Whilethishasbeenviewedasamusthaveandreadilyavailablemetricformanyenterprises,common
misusesinclude:
Lookingatasingleyearratherthanmultiyeartrends
Basingdecisionsontheassumptionthatthisfigurewillnotchangeinthefuture,sometimesdramatically
Failingtounderstandandaddresschangesinthenumeratorandthedenominatorofthecalculation
Consideringjusttheaverageratherthantherangeofvaluesortheupperandlowerquartiles
ITspendingasapercentofrevenuealonedoesnothighlightwhyspendinglevelsareat,aboveorbelowaverage(whichareoften
misinterpretedas"good"or"bad"),nordoesitreflectIT'scontributiontobusinessperformance.Thus,ITspendingasapercentofrevenue
needstobeconsideredintandemwithotherITintensitymeasures,aswellasthecontextofbusinessobjectives,therateofchangeandthe
overallcircumstancesaffectingthenumerator,aswellasthedenominator,ofthecalculation.

ITSpendingasaPercentofRevenue

Source:GartnerITKeyMetricsData2016

ITSpendingasaPercentofOpera ngExpense
ITspendingasapercentofoperatingexpenseisanotherviewofITinvestmentlevelsintermsoftheroleITplaysinoverallbusinessspending
patterns.
Whilerevenuemaybesubjecttoexternalmarketbasedvolatilities,businessoperationalexpensetypicallyremainsmuchmoreconsistentand
predictableyearoveryearthus,itbetterreflectstheoverallbusinessinvestmentstrategy.Typically,organizationswithagreaterlevelofIT
investmentrelativetooperatingexpenseviewITasastrategicenabler,andthiscanimprovebusinessperformanceandproductivitylevels.

ITSpendingasaPercentofOperatingExpense

Source:GartnerITKeyMetricsData2016

ITSpendingperEmployee
ITspendingperemployeeisoftenusedtodeterminetheamountofITsupporttheaverageorganization'sworkforcereceives.
ThismeasurehelpstoestablishalinkbetweenITinvestmentandautomationlevelswithinthecontextoftheworkforcethatsupportsrevenue.
Variationsinthismeasurecanrepresentnicheindustryspecificdeliveryprocessesforserviceorproductdelivery,and,thus,shouldbeviewed
inconjunctionwithrevenueandoperatingincomeperemployee.Organizationalstaffingstrategiesandtheuseofcontractemployeescanalso
impactthismeasure.
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 7 / 25
AnincreaseinITspendingperemployeeisoftenviewedasanegativetrend.However,thismaynotalwaysbethecase,asadecreasein
employees(oralackofincreaseofadditionalemployeeswhenbusinessimproves)canresultinahighervalue,simplybecausetherearea
smallernumberofemployeesthataredividedintothesameorincreasingITspendingsize.Therefore,theoveralltrendmayhavebeen
impactedbycontinuinglowerlevelsofgeneralemploymentandthefactthat,inmanycases,organizationshavereturnedtoprofitability,but
 Source:GartnerITKeyMetricsData2016

ITSpendingperEmployee
ITspendingperemployeeisoftenusedtodeterminetheamountofITsupporttheaverageorganization'sworkforcereceives.
ThismeasurehelpstoestablishalinkbetweenITinvestmentandautomationlevelswithinthecontextoftheworkforcethatsupportsrevenue.
Variationsinthismeasurecanrepresentnicheindustryspecificdeliveryprocessesforserviceorproductdelivery,and,thus,shouldbeviewed
inconjunctionwithrevenueandoperatingincomeperemployee.Organizationalstaffingstrategiesandtheuseofcontractemployeescanalso
impactthismeasure.

AnincreaseinITspendingperemployeeisoftenviewedasanegativetrend.However,thismaynotalwaysbethecase,asadecreasein
employees(oralackofincreaseofadditionalemployeeswhenbusinessimproves)canresultinahighervalue,simplybecausetherearea
smallernumberofemployeesthataredividedintothesameorincreasingITspendingsize.Therefore,theoveralltrendmayhavebeen
impactedbycontinuinglowerlevelsofgeneralemploymentandthefactthat,inmanycases,organizationshavereturnedtoprofitability,but
havebeenreluctanttoincreasehiring.Forinformationintensiveenterprises,anincreaseintheirfigureforITspendingperemployeemay
indicateaproductivityimprovement,duetoautomationordigitization.

ITSpendingperEmployee(USD)

Source:GartnerITKeyMetricsData2016

BusinessProductivity
RevenueperEmployee

Revenueperemployeecanhelpdetermineemployeeproductivityintermsofrevenuegenerationintensity.Thismeasureistypicallyinfluenced
byorganizationalbusinessmodelandstaffingstrategy.Thoseenterprisesthatarehighlylaborintensiveoperationstendtogeneratealesser
amountofrevenueperindividualascomparedtothoseenterpriseswhoarehighlyautomated.EffectiveandefficientusesofITenable
businessprocessestobestreamlined,thusincreasethelevelofemployeeproductivityintermsofbusinessresults.Whilerevenuemay
representtoplinebusinessresults,itdoesnotrepresentanorganizationsabilitytogenerateincome.Thismeasureshouldbeconsidered
withinthecontextoftheenterpriseoperatingmodelwhichdrivesoperatingincomeandprofitmarginaswellaswithinthecontextofthetotal
workforcestrategy.

RevenueperEmployee(USD)

Source:GartnerITKeyMetricsData2016

ITBudgetDistributions:UncovertheFacts Page 8 / 25
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch.
Uptothispoint,thefigureshaveshownspendingtrendsoverallwithoutdistinguishingbetweenthestrategic,financialoroperationalcategories
thatcomposethem.Throughthesecategories,youcandrawconclusionsaboutcriticalinvestmentareas,keyinvestmentthemesand
competitivespendinglevels.
 Source:GartnerITKeyMetricsData2016

BusinessProductivity
RevenueperEmployee

Revenueperemployeecanhelpdetermineemployeeproductivityintermsofrevenuegenerationintensity.Thismeasureistypicallyinfluenced
byorganizationalbusinessmodelandstaffingstrategy.Thoseenterprisesthatarehighlylaborintensiveoperationstendtogeneratealesser
amountofrevenueperindividualascomparedtothoseenterpriseswhoarehighlyautomated.EffectiveandefficientusesofITenable
businessprocessestobestreamlined,thusincreasethelevelofemployeeproductivityintermsofbusinessresults.Whilerevenuemay
representtoplinebusinessresults,itdoesnotrepresentanorganizationsabilitytogenerateincome.Thismeasureshouldbeconsidered
withinthecontextoftheenterpriseoperatingmodelwhichdrivesoperatingincomeandprofitmarginaswellaswithinthecontextofthetotal
workforcestrategy.

RevenueperEmployee(USD)

Source:GartnerITKeyMetricsData2016

ITBudgetDistributions:UncovertheFacts
Uptothispoint,thefigureshaveshownspendingtrendsoverallwithoutdistinguishingbetweenthestrategic,financialoroperationalcategories
thatcomposethem.Throughthesecategories,youcandrawconclusionsaboutcriticalinvestmentareas,keyinvestmentthemesand
competitivespendinglevels.

ITOpera onalvs.CapitalSpending
IToperationalvs.capitalspendinghelpstoportraytheITinvestmentprofileforanorganizationinagivenyear.
ThisinformationistypicallyavailableinmostaccountingorITfinancedepartments,and,thus,itmaybeeasytoobtainyearoveryear.This
metriccanprovidevisibilityintothecyclicalnatureofcapitalinvestments(suchashardware,softwareandlargeservicecontracts)compared
withrecurringoperationalexpenses(suchaspersonnel,facilitiesandmaintenanceexpenses).Thechallengeisinleveragingthisinformation
tocommunicatethelinkagebetweenITinvestmentandbusinessresults,becauseitisatraditionalaccountingviewofITcashflowanddoes
nothighlighthowITinvestmentenablesimprovedbusinessperformance.

ITOperationalvs.CapitalSpending

Source:GartnerITKeyMetricsData2016

ITSpendingDistribu on:Hardware,So ware,Personnel,Outsourcing

2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 9 / 25
Thedistributionofspendingbetweenhardware,software,personnelandoutsourcingcostscanshowthedynamicsofITinvestments.Forthe
purposeofthisresearch,personnelincludesoccupancy/facilitiescostsandoutsourcingincludesthirdpartynetworktransmissionexpenses.
ThismeasurecanbehelpfulinaddingcontexttotheITinvestmentstrategyfromasourcingperspective,intermsofaccountingbased
 Source:GartnerITKeyMetricsData2016

ITBudgetDistributions:UncovertheFacts
Uptothispoint,thefigureshaveshownspendingtrendsoverallwithoutdistinguishingbetweenthestrategic,financialoroperationalcategories
thatcomposethem.Throughthesecategories,youcandrawconclusionsaboutcriticalinvestmentareas,keyinvestmentthemesand
competitivespendinglevels.

ITOpera onalvs.CapitalSpending
IToperationalvs.capitalspendinghelpstoportraytheITinvestmentprofileforanorganizationinagivenyear.
ThisinformationistypicallyavailableinmostaccountingorITfinancedepartments,and,thus,itmaybeeasytoobtainyearoveryear.This
metriccanprovidevisibilityintothecyclicalnatureofcapitalinvestments(suchashardware,softwareandlargeservicecontracts)compared
withrecurringoperationalexpenses(suchaspersonnel,facilitiesandmaintenanceexpenses).Thechallengeisinleveragingthisinformation
tocommunicatethelinkagebetweenITinvestmentandbusinessresults,becauseitisatraditionalaccountingviewofITcashflowanddoes
nothighlighthowITinvestmentenablesimprovedbusinessperformance.

ITOperationalvs.CapitalSpending

Source:GartnerITKeyMetricsData2016

ITSpendingDistribu on:Hardware,So ware,Personnel,Outsourcing

Thedistributionofspendingbetweenhardware,software,personnelandoutsourcingcostscanshowthedynamicsofITinvestments.Forthe
purposeofthisresearch,personnelincludesoccupancy/facilitiescostsandoutsourcingincludesthirdpartynetworktransmissionexpenses.
ThismeasurecanbehelpfulinaddingcontexttotheITinvestmentstrategyfromasourcingperspective,intermsofaccountingbased
resourcesthatmaybeinsourced(e.g.,IThardware,software,personnelandoccupancy/facilitiescosts)vs.servicesdeliveredbyathirdparty
(e.g.,outsourcedservicesanddata/voicetransmissioncosts).Asanorganizationincreasesordecreasesthelevelofthirdparty/outsourced
services,itmayfindaninverseeffectinitsassociatedpersonnel,hardwareand/orsoftwareexpenditures,dependingonthescopeofthird
partyservicesretainedandonbusinessrequirements.ThecyclicalnatureofcapitalinvestmentsinIThardwareandsoftwaremayalsoplaya
significantroleinanorganization'sITspendingoutlayduringagivenyear.

ITSpendingDistribution:Hardware,Software,Personnel,Outsourcing

Source:GartnerITKeyMetricsData2016

StrategicITSpendingCategories:ITSpendingtoRunthebusiness,ITSpendingtoGrowthebusinessandITSpending
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 10 / 25
toTransformthebusiness
ThedistributionofITspendingto"runthebusiness,""growthebusiness"and"transformthebusiness"providesaviewoftheITinvestment
profiletosupportbusinessperformance.Insomeindustries,itisnotuncommontoseeahigh"run"focustypicallybecauseorganizationsin
 Source:GartnerITKeyMetricsData2016

StrategicITSpendingCategories:ITSpendingtoRunthebusiness,ITSpendingtoGrowthebusinessandITSpending
toTransformthebusiness
ThedistributionofITspendingto"runthebusiness,""growthebusiness"and"transformthebusiness"providesaviewoftheITinvestment
profiletosupportbusinessperformance.Insomeindustries,itisnotuncommontoseeahigh"run"focustypicallybecauseorganizationsin
theindustryarenotplanningstrongchangesinbusinessmodelgrowthorhighorganicgrowthwhichoftentranslatesintoamore"cost
center"roleforITintheindustryornichesector.

ClassifyingITspendingintocategoriesthatshowimpactonbusinessoutcomesorsuccesscanaidalignmentandquantifyunderinvestmentin
IT.Gartnerusesthefollowingportfoliospendingcategoriesanddefinesthemasfollows:

Runthebusiness:ThisisanindicatorofhowmuchoftheITresourceisconsumedandfocusedonthecontinuingoperationofthebusiness.It
includesallnondiscretionaryexpensesaspartoftherunthebusinesscost.
Growthebusiness:ThisisanindicatorofhowmuchoftheITresourceisconsumedandfocusedondevelopingandenhancingITsystemsin
supportofbusinessgrowth(typicallyorganicgrowth).Discretionaryinvestmentsaremorelikelytobeincludedinthegrowthebusinessor
transformthebusinesscost.
Transformthebusiness:ThisisanindicatorofhowmuchoftheITresourceisconsumedandfocusedonimplementingtechnologysystems
thatenabletheenterprisetoenactnewbusinessmodels.Thisisverymucha"venture"categoryandwouldberepresentedbyactivitiessuch
asaninsurerintroducingusagebasedinsuranceproductssuchastelematicsorasupermarketcombiningrealtimeanalyticmonitoringwithin
storetaskmanagementtoprovideautomatedalertstostorestafftoperformpreemptivetasks.

GapsinbusinessalignmentcanbefoundbyexaminingITspendingasitrelatestothedaytodayoperationsofabusiness(run),theorganic
growthofthebusinessorproductivityimprovement(grow)anditssupportofmajorbusinesstransformation,newproducts,servicesor
businessmodels(transform).

AcommonmisconceptionwiththismeasureisthatanITinitiativethatmaytransformtheITorganization,suchasdatacentermodernizationor
virtualization,shouldbeclassifiedasa"transformthebusiness"investment.WhiletheseITinitiativesdotransformtheITorganization,they
shouldprimarilybeclassifiedas"runthebusiness"investmentsbecausetheysupportpreexistingITservices.ITtransformationoftenleadsto
newbusinessprocessimprovementsthatenablethebusinesstogroworbuildnewrevenuestreamstherefore,thesecostswouldneedtobe
evaluatedanddistributedbasedonITserviceandbusinessperformance.Therun,growandtransformthebusinessframeworkshouldalways
beviewedinbusinesstermswithrespecttohowITwillenablethebusinesstogrowortransformrevenue,operatingincomeand/orprofit
margins.

StrategicITSpending:ITSpendingtoRunthebusiness,ITSpendingtoGrowthebusinessandITSpendingtoTransformthe
business

Source:GartnerITKeyMetricsData2016

DeterminingtheBusinessContextforValue
Asorganizationsleveragetherunthebusiness,growthebusinessandtransformthebusinessconceptsatamacrolevel,Gartnerhasfoundit
helpfultodefinevariousITinvestments(andportionsofinvestments)withthesamebasicframeworktoillustratetheprojectedimpactatthe
individualITinitiativeandprojectlevels.

Withabasicunderstandingoftheframework,asoutlinedhere,organizationscanapplythedecisiontreetoselectthecategorythatbest
describesbusinessvaluefortheirITinitiatives.

StrategicITSpending:DecisionTree
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 11 / 25
 Source:GartnerITKeyMetricsData2016

DeterminingtheBusinessContextforValue
Asorganizationsleveragetherunthebusiness,growthebusinessandtransformthebusinessconceptsatamacrolevel,Gartnerhasfoundit
helpfultodefinevariousITinvestments(andportionsofinvestments)withthesamebasicframeworktoillustratetheprojectedimpactatthe
individualITinitiativeandprojectlevels.

Withabasicunderstandingoftheframework,asoutlinedhere,organizationscanapplythedecisiontreetoselectthecategorythatbest
describesbusinessvaluefortheirITinitiatives.

StrategicITSpending:DecisionTree

Source:Gartner2016

TheLinktoStrategy
Therungrowtransformframeworkisastartingpointfortheoverallprocessofdescribing,forecastingandmeasuringITvalue.Gartnerbelieves
thattheinitiallanguageandmetricsusedforbusinessvaluearecriticalsuccessfactorsintheorganization'sabilitytomakegoodITinvestment
decisions.Fororganizationsthatarelookingforbestpractice,considerlinkingindividualITservicestoindividualbusinessprocess
performancesinacausalchain.Formoreinformation,seeASimpleFrameworktoTranslateITBenefitsIntoBusinessValueImpact.

Distribu onofITCost,byITFunc onalArea

ThedistributionofITcostbyITfunctionalareaprovidesaviewofkeyITbudgetconsumptioninthecontextoftheoverallITportfolioandthe
annualexpensetosupportthoseITfunctionaloperations:

Thisdistributionisdifferentfromallthepreviousmetricsbecauseitrepresentsan"annualexpenseview"ofITspendingthatincludes
depreciationandamortization,aswellasthecurrentyear'soperational,leaseandmaintenanceexpenses.Thisviewreflectsthetotalannual
costoftheITenvironmentandexcludesthefullcapitalexpenseoutlayofthegivenyear.ITfunctionalareadefinitionsareoutlinedinthe"IT
FunctionalAreaFramework"sectionoftheAppendix.

ThedistributionofITexpensesintothesecategorieshelpstodefinetherelativelevelofITresourcesrequiredtosupportthetechnology
environmentportfolio.ThisisoftenleveragedintandemwithITresourceplanningexercises,whereinannualcostandstaffresourceallocations
canbeviewedintermsofITinfrastructure(datacenter,endusercomputing,ITservicedesk,datanetworkandvoicenetwork)vs.applications
(applicationdevelopmentandapplicationsupport)vs.IToverhead(ITmanagement,ITfinanceandITadministration).Whilethismeasureis
helpfulinidentifyingrelativevolumesofITresourceconsumptionbyITfunctionalarea,ascomparedtoindustry,itdoesnotaidinidentifying
whetherresourcesarebeingleveragedinacosteffectiveorproductivemanner.

DistributionofITCost,byITFunctionalArea

2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 12 / 25

 TheLinktoStrategy
Therungrowtransformframeworkisastartingpointfortheoverallprocessofdescribing,forecastingandmeasuringITvalue.Gartnerbelieves
thattheinitiallanguageandmetricsusedforbusinessvaluearecriticalsuccessfactorsintheorganization'sabilitytomakegoodITinvestment
decisions.Fororganizationsthatarelookingforbestpractice,considerlinkingindividualITservicestoindividualbusinessprocess
performancesinacausalchain.Formoreinformation,seeASimpleFrameworktoTranslateITBenefitsIntoBusinessValueImpact.

Distribu onofITCost,byITFunc onalArea

ThedistributionofITcostbyITfunctionalareaprovidesaviewofkeyITbudgetconsumptioninthecontextoftheoverallITportfolioandthe
annualexpensetosupportthoseITfunctionaloperations:

Thisdistributionisdifferentfromallthepreviousmetricsbecauseitrepresentsan"annualexpenseview"ofITspendingthatincludes
depreciationandamortization,aswellasthecurrentyear'soperational,leaseandmaintenanceexpenses.Thisviewreflectsthetotalannual
costoftheITenvironmentandexcludesthefullcapitalexpenseoutlayofthegivenyear.ITfunctionalareadefinitionsareoutlinedinthe"IT
FunctionalAreaFramework"sectionoftheAppendix.

ThedistributionofITexpensesintothesecategorieshelpstodefinetherelativelevelofITresourcesrequiredtosupportthetechnology
environmentportfolio.ThisisoftenleveragedintandemwithITresourceplanningexercises,whereinannualcostandstaffresourceallocations
canbeviewedintermsofITinfrastructure(datacenter,endusercomputing,ITservicedesk,datanetworkandvoicenetwork)vs.applications
(applicationdevelopmentandapplicationsupport)vs.IToverhead(ITmanagement,ITfinanceandITadministration).Whilethismeasureis
helpfulinidentifyingrelativevolumesofITresourceconsumptionbyITfunctionalarea,ascomparedtoindustry,itdoesnotaidinidentifying
whetherresourcesarebeingleveragedinacosteffectiveorproductivemanner.

DistributionofITCost,byITFunctionalArea

Source:GartnerITKeyMetricsData2016

TobetterunderstandITfunctionalcostefficiencylevels,GartnerrecommendsidentifyingwhichITfunctionalareaishasthelargestvariance
fromtheindustrymean,thenevaluatetheindividualITfunctionalannualcostscomparedwiththeworkloadsupported,withinthecontextofyour
servicelevels,complexity,demandandscalebasedonthemodelandmetricsoutlinedinGartner'svarious"ITKeyMetricsData:Key
InfrastructureMeasures"researchoutlinedinthe"ITFunctionalAreaFramework"sectionoftheAppendix.

ITPortfolioTrends:Staffing
Aswehaveseeninprecedingfigures,internalstafftypicallyrepresentsmorethanonethirdoftheoverallITinvestment,whichdemonstratesthe
considerablehumancomponentoftheITportfolio.Assuch,itiscriticalfororganizationstounderstandwhethertheyarestaffedadequately,
whethertheirhumanresourcesareeffectiveandwhethertheyaresufficientlytrainedandmotivatedtomeetchangingbusinessneeds.The
followingmetricsprovideabroadviewofITstaffinglevelsascomparedtotheindustry.

ITFullTimeEquivalents(FTEs)asaPercentofEmployees
ITFTEsasapercentofemployeesisakeymeasureofITsupportinvestmentfromahumancapitalperspective.
UnderstandingtherelativelevelofITstaffdedicatedtosupportingthebusinesscanalsoassistinidentifyingwhetherthestaffsizeis
appropriate.Thisshouldbeconsideredwithinthecontextoftheoverallenterprisesourcingstrategyandfuturestateobjectives.Variablesto
considerintandemwiththismetricincludeITstaffingdistribution,contractvs.insourcedFTEs,andIToutsourcingasapercentofITspending,
aswellastheenterprisesourcingstrategy(i.e.,doesthetotalemployeecountaccuratelyrepresenttheorganization'sworkforcethatis
supportedbyIT?DoyouhavetheabilitytotrackthetotalnumberofinternaluserssupportedbyIT?

2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos
ITFTEsasaPercentofEmployees cToolanddoesnotcons tuteGartnerresearch. Page 13 / 25
 Source:GartnerITKeyMetricsData2016

TobetterunderstandITfunctionalcostefficiencylevels,GartnerrecommendsidentifyingwhichITfunctionalareaishasthelargestvariance
fromtheindustrymean,thenevaluatetheindividualITfunctionalannualcostscomparedwiththeworkloadsupported,withinthecontextofyour
servicelevels,complexity,demandandscalebasedonthemodelandmetricsoutlinedinGartner'svarious"ITKeyMetricsData:Key
InfrastructureMeasures"researchoutlinedinthe"ITFunctionalAreaFramework"sectionoftheAppendix.

ITPortfolioTrends:Staffing
Aswehaveseeninprecedingfigures,internalstafftypicallyrepresentsmorethanonethirdoftheoverallITinvestment,whichdemonstratesthe
considerablehumancomponentoftheITportfolio.Assuch,itiscriticalfororganizationstounderstandwhethertheyarestaffedadequately,
whethertheirhumanresourcesareeffectiveandwhethertheyaresufficientlytrainedandmotivatedtomeetchangingbusinessneeds.The
followingmetricsprovideabroadviewofITstaffinglevelsascomparedtotheindustry.

ITFullTimeEquivalents(FTEs)asaPercentofEmployees
ITFTEsasapercentofemployeesisakeymeasureofITsupportinvestmentfromahumancapitalperspective.
UnderstandingtherelativelevelofITstaffdedicatedtosupportingthebusinesscanalsoassistinidentifyingwhetherthestaffsizeis
appropriate.Thisshouldbeconsideredwithinthecontextoftheoverallenterprisesourcingstrategyandfuturestateobjectives.Variablesto
considerintandemwiththismetricincludeITstaffingdistribution,contractvs.insourcedFTEs,andIToutsourcingasapercentofITspending,
aswellastheenterprisesourcingstrategy(i.e.,doesthetotalemployeecountaccuratelyrepresenttheorganization'sworkforcethatis
supportedbyIT?DoyouhavetheabilitytotrackthetotalnumberofinternaluserssupportedbyIT?

ITFTEsasaPercentofEmployees

Source:GartnerITKeyMetricsData2016

Distribu onofITFTEs:Insourcedvs.Contractor
ThedistributionofITFTEsinsourcedvs.contractorcanhelpprovideaviewoftheITstaffingstrategy.
ITcontractlabororcontractorusagecanbeaneffectiveapproachtomaintainingflexibilityandagilitywhenbusinessconditionsarechanging.
However,keepingcontractorsforextendedperiodscanbecostlyandlimitprocessstandardization.

DistributionofITFTEs:Insourcedvs.Contractor

Source:GartnerITKeyMetricsData2016

Distribu onofITSta,byITFunc onalArea

ThedistributionofITstaffbyITfunctionalareaprovidesaviewofkeyITresourceconsumptioninthecontextoftheoverallITportfolio.
Byviewinghumanresources(ITFTEs)withinthecontextofthetotalportfolio,organizationsareabletoidentifywhichenvironmentisthemost
laborintensiveasapercentoftheITlaborpool.Typically,applicationactivities(developmentandsupport)demandthemostresourcesfroma
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 14 / 25
costaswellasastaffingperspective.Thedegreetowhichanorganizationoutsourcesshouldbeconsideredalongsidesuchstaffingmetrics.
TobetterunderstandITfunctionalareastaffproductivitylevels,GartnerrecommendsevaluatingindividualITfunctionalstaffinglevelscompared
withtheworkloadsupported,withinthecontextofservicelevels,complexity,demandandscale.Formoreinformationonproductivitymeasures
byITfunctionalarea,seeGartner'svarious"ITKeyMetricsData:KeyInfrastructureMeasures"research(whichiscitedthroughoutthisreport).
 Source:GartnerITKeyMetricsData2016

Distribu onofITSta,byITFunc onalArea

ThedistributionofITstaffbyITfunctionalareaprovidesaviewofkeyITresourceconsumptioninthecontextoftheoverallITportfolio.
Byviewinghumanresources(ITFTEs)withinthecontextofthetotalportfolio,organizationsareabletoidentifywhichenvironmentisthemost
laborintensiveasapercentoftheITlaborpool.Typically,applicationactivities(developmentandsupport)demandthemostresourcesfroma
costaswellasastaffingperspective.Thedegreetowhichanorganizationoutsourcesshouldbeconsideredalongsidesuchstaffingmetrics.
TobetterunderstandITfunctionalareastaffproductivitylevels,GartnerrecommendsevaluatingindividualITfunctionalstaffinglevelscompared
withtheworkloadsupported,withinthecontextofservicelevels,complexity,demandandscale.Formoreinformationonproductivitymeasures
byITfunctionalarea,seeGartner'svarious"ITKeyMetricsData:KeyInfrastructureMeasures"research(whichiscitedthroughoutthisreport).

DistributionofITStaff,byITFunctionalArea

Source:GartnerITKeyMetricsData2016

NextSteps:
Shi theFocustoBusinessOp miza on
Creationoftheserviceportfolioisnotthefinalendgame.AfterIThascreatedtheserviceportfolio,itisimportanttodemonstratethevalueeach
servicecanbringtothebusinessbycreatingalinktobusinessmetrics.Inthisdiagram,wecanseehoweachITservicecontributesto
improvementofabusinessoutcome.CIOsandITleadersshouldalwayskeepthislinkinmindandtalkinbusinessoutcomesratherthan
focusingonlyonITcostsandITservicelevels.Costmanagementisimportantinthatithelpstodemonstratethecredibilityofcost
managementbyitself,however,itdoesverylittletodemonstratebusinessvalue.CIOsthatcanmasterrunningITasabusinessstanda
greaterchanceofbeingabletoaccessgreaterbudgetsacrossthebusiness.OnceITcanbecomeknowninthebusinessashavingtheability
tohelpcontributetowardfactorssuchasimprovingcustomerretentionoroperationalefficiency,CIOswillbeinvitedtocontributeatagreater
leveltowardhelpingshapebusinessstrategy.Formoreinformation,see"HowtoShifttheFocusFromITCostCuttingtoBusiness
Optimization"and"ThreeKeyStepsAreNeededtoShowtheValueofITServices."

2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 15 / 25

Conclusions
AsuccessfulITperformancemeasurementprogramcommunicatesmetricsthatareimportanttoatargetaudience.Thisremainstruewhen
 Source:GartnerITKeyMetricsData2016

NextSteps:
Shi theFocustoBusinessOp miza on
Creationoftheserviceportfolioisnotthefinalendgame.AfterIThascreatedtheserviceportfolio,itisimportanttodemonstratethevalueeach
servicecanbringtothebusinessbycreatingalinktobusinessmetrics.Inthisdiagram,wecanseehoweachITservicecontributesto
improvementofabusinessoutcome.CIOsandITleadersshouldalwayskeepthislinkinmindandtalkinbusinessoutcomesratherthan
focusingonlyonITcostsandITservicelevels.Costmanagementisimportantinthatithelpstodemonstratethecredibilityofcost
managementbyitself,however,itdoesverylittletodemonstratebusinessvalue.CIOsthatcanmasterrunningITasabusinessstanda
greaterchanceofbeingabletoaccessgreaterbudgetsacrossthebusiness.OnceITcanbecomeknowninthebusinessashavingtheability
tohelpcontributetowardfactorssuchasimprovingcustomerretentionoroperationalefficiency,CIOswillbeinvitedtocontributeatagreater
leveltowardhelpingshapebusinessstrategy.Formoreinformation,see"HowtoShifttheFocusFromITCostCuttingtoBusiness
Optimization"and"ThreeKeyStepsAreNeededtoShowtheValueofITServices."

Conclusions
AsuccessfulITperformancemeasurementprogramcommunicatesmetricsthatareimportanttoatargetaudience.Thisremainstruewhen
communicatingITinvestmentstothebusiness.ThemetricsandbenchmarksthatGartnerhasidentifiedhereprovideahighlevelviewof
currenttrendsinITbyindustry.Theyalsorevealtrendsinbusinessalignment,staffing,technologyandoutsourcing.Theycanbeusedtoassist
incommunicatingalignmentwiththebusinessandinevaluatingtargetsinkeytechnologyareas.Theyprovidecontextforkeybusiness
decisionsandinternalperformancemeasures.
Itisimportanttounderstandthatthepublishedaveragesarenottargets,anddecisionsof"good"or"bad"performanceshouldnotbebasedon
thesemetrics.Theyareindicativereferencepointsfromwhichtoviewcurrentperformanceandinvestmentlevelstohelpyouidentify
differencesthatcouldmeritfurtheranalysis.Articulatingwhyyourorganizationishigherorlowerthanthesemetricsisthefirststepinbetter
businessalignmentandthecommunicationofIT'simpactonbusinessperformance.
FormoredetailedmetricsfocusedonITinfrastructurecostandperformance,consultGartner'svarious"ITKeyMetricsData:KeyInfrastructure
Measures"research,whichcanhelpprovidemoreinsightintoITcentriccostefficiencyandproductivitymetrics.
FormoredetailedmetricsfocusedonITapplicationspending,staffingandprojectmeasures,consultGartner's"ITKeyMetricsData:Key
ApplicationsMeasures"research,whichcanhelpprovidemoreinsightintototalapplicationdevelopmentvs.supportmetrics.

RelatedGartnerITKeyMetricsDataResearch
ITmetricsresearchincludedinthisreportispartofasetofGartnerBenchmarkAnalyticsresearchpieces.
DependinguponyoursubscriptionlevelforGartnerservices,someclientshaveaccesstotheGartnerITKeyMetricsDatapublicationseries
viathelinkatgartner.com,select"Explore,""Metrics&Tools,"andunderITKeyMetricsData,select"LearnMore."

FordetailedlistofpublishedITKeyMetricsDatapublished,review"ITKeyMetricsData2016:IndexofPublishedDocumentsandMetrics"
GartnerRN#G00291331,foracomprehensivelistofallavailableITKeyMetricsDataresearch.

ITKeyMetricsData2016:ExecutiveSummary
ITKeyMetricsData2016:ResourcestoReviewYourITBudgetComparisonReport
ITKeyMetricsData2016:IndexofPublishedDocumentsandMetrics
ITKeyMetricsData2016:DefinitionofIndustries
ITKeyMetricsData2016:Demographics

2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 16 / 25

RecommendedReading
AccesstothesedocumentsisdependentuponyourlevelofGartnersubscription.
 Itisimportanttounderstandthatthepublishedaveragesarenottargets,anddecisionsof"good"or"bad"performanceshouldnotbebasedon
thesemetrics.Theyareindicativereferencepointsfromwhichtoviewcurrentperformanceandinvestmentlevelstohelpyouidentify
differencesthatcouldmeritfurtheranalysis.Articulatingwhyyourorganizationishigherorlowerthanthesemetricsisthefirststepinbetter
businessalignmentandthecommunicationofIT'simpactonbusinessperformance.
FormoredetailedmetricsfocusedonITinfrastructurecostandperformance,consultGartner'svarious"ITKeyMetricsData:KeyInfrastructure
Measures"research,whichcanhelpprovidemoreinsightintoITcentriccostefficiencyandproductivitymetrics.
FormoredetailedmetricsfocusedonITapplicationspending,staffingandprojectmeasures,consultGartner's"ITKeyMetricsData:Key
ApplicationsMeasures"research,whichcanhelpprovidemoreinsightintototalapplicationdevelopmentvs.supportmetrics.

RelatedGartnerITKeyMetricsDataResearch
ITmetricsresearchincludedinthisreportispartofasetofGartnerBenchmarkAnalyticsresearchpieces.
DependinguponyoursubscriptionlevelforGartnerservices,someclientshaveaccesstotheGartnerITKeyMetricsDatapublicationseries
viathelinkatgartner.com,select"Explore,""Metrics&Tools,"andunderITKeyMetricsData,select"LearnMore."

FordetailedlistofpublishedITKeyMetricsDatapublished,review"ITKeyMetricsData2016:IndexofPublishedDocumentsandMetrics"
GartnerRN#G00291331,foracomprehensivelistofallavailableITKeyMetricsDataresearch.

ITKeyMetricsData2016:ExecutiveSummary
ITKeyMetricsData2016:ResourcestoReviewYourITBudgetComparisonReport
ITKeyMetricsData2016:IndexofPublishedDocumentsandMetrics
ITKeyMetricsData2016:DefinitionofIndustries
ITKeyMetricsData2016:Demographics

RecommendedReading
AccesstothesedocumentsisdependentuponyourlevelofGartnersubscription.

MasteringITBudgetingandFinancialTransparencyPrimerfor2016
ManagingITCostOptimizationPrimerfor2016
10AbsoluteTruthsforCostingIT
FourKeystoEffectiveServiceCosting
DevelopingaFinancialTransparencyRoadmap
TheOngoingOpportunityforITCostandValueOptimization,3Q15Update
TheOngoingOpportunityforITCostandValueOptimization,2Q15Update
TheOngoingOpportunityforITCostandValueOptimization,1Q15Update
HowtoShifttheFocusFromITCostCuttingtoBusinessOptimization
ThreeKeyStepsAreNeededtoShowtheValueofITServices

AppendixThepowerofBenchmarkAnalyticsthroughoutGartner
GartnerisunparalleledintheITmarketplace.Bybringingtogetherindustryleading,independentresearchandadvisorycapabilitieswithclient
prescriptiveconsultingservicesandtheworldslargestITbenchmarkingdatabaseweaddressourclientsmostimportantchallengesand
producetangibleresults.

2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 17 / 25

 MoreinformationonGartnerBenchmarkAnalyticscanbeobtainedbycontactingyourAccountExecutive,Or
benchmarkinginfo@gartner.com

AppendixGlossaryofTerms
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 18 / 25

Revenue
Revenueisdefinedasfollows:
 MoreinformationonGartnerBenchmarkAnalyticscanbeobtainedbycontactingyourAccountExecutive,Or
benchmarkinginfo@gartner.com

AppendixGlossaryofTerms

Revenue
Revenueisdefinedasfollows:
"TheenterpriserevenueassociatedwiththebusinessunitssupportedbytheITorganization(banksshouldusetotalinterestincomeplus
noninterestincomeminusprovisionforloanlosses,whileinsurancecompaniesshouldusegrosswrittenpremiumsandotherincome)."

BusinessOpera onalExpense
Businessoperationalexpenseisdefinedasfollows:
"ThetotalexpenseassociatedwiththebusinessunitssupportedbytheITorganization.Thisincludesitemssuchasselling,generaland
administrativeexpenses,costofgoodssold(orcostofrevenue),researchanddevelopment,depreciation,anddepletionandamortization
expenses.Forinsurance,thisincludesunderwritingexpensesandlossandlossadjustmentexpensesforbankingorganizations,itincludes
interestexpensesandnoninterestexpensesforgovernmentandnonprofitorganizations,itisrepresentedbytheenterpriseoperatingbudget."

Employees
Organizationemployeecountisdefinedas:
"Thecountofemployees(i.e.,headcount,excludingenterprisecontractorsandconsultants),regardlessofwhethertheseemployeesare
frequentusersofthetechnologysupportedbytheITorganization.Thisincludesfulltimeandparttimeemployees,orasreportedinthepublic
record."

ITFull meEquivalents(ITFTEs)
ITFTEisdefinedasfollows:
"AnITFTErepresentsthelogicalstafftosupportfunctionsperformedbythephysicalstaff,measuredincalendartime.Thisincludesall
staffinglevelswithintheorganization,frommanagersandprojectleaderstodailyoperationspersonnel.ThisalsoincludesinsourcedFTEsand
contractFTEs.However,thisexcludesthestaffofathirdpartyvendor(forexample,IToutsourcing),whichisnotoperationallymanagedbythe
inhousestaff,butratherismanagedbythevendor."
InsourcedITFTEisdefinedas:
"FTEswhoareemployedbytheITorganization(excludingcontractorsandconsultants).Theseincludeallfulltimeandparttimeemployees
supportingtheITenvironment,asdefinedbyITspending/budget."
ContractITFTEisdefinedas:
"ContractFTEs(contractors)whoaresupplementaltoyourstaffandare"operationally"managedbytheinhousestaff.Theseincludeallfull
time,parttimeandtemporarycontractorssupportingtheITenvironment,asdefinedbyITspending/budget."

ITOpera onalvs.CapitalSpending
IToperationalexpenseisdefinedas:
"Thetotaldaytodayoperationsandmaintenanceexpensesforthisfiscalyearthathavenotbeencapitalized.Thesedonotincludeany
amortizationanddepreciationexpenses."
ITcapitalspendingisdefinedas:
"ThetotalcapitalizedITspendingforthefiscalyear(i.e.,thefullvalueofcapitalizedassetsacquiredinthefiscalyear).Thisincludes
investmentsinnewapplicationdevelopmentandITinfrastructure."

ITSpendingDistribu on:Hardware,So ware,Personnel,Outsourcing

Thedefinitionsofeachcategoryareasfollows:
HardwareExpenses:TheseincludeallhardwareexpensesdescribedintheITspending/budgetdefinition.
SoftwareExpenses:TheseincludeallsoftwareexpensesdescribedintheITspending/budgetdefinition.
Personnel/OccupancyExpenses:Theseinclude:
SalaryandBenefitsExpenses:"Theseshouldincludesalary(includingovertimepay),benefitsand"other"employeecosts,suchas
travelandtrainingforallITFTEs.The"benefitload"shouldincludecostsforbonuses,paidholidays,vacations,medical/dental
coverage,lifeandaccidentinsurance,retirementplans,stockplans,disability,SocialSecurity,unemploymentcompensation,
dependentcare,tuitionreimbursementsandemployeeassistanceprograms(forexample,physicalexams,exerciseprogramsand
similarcosts)."
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 19 / 25
Occupancy/FacilitiesExpenses:"Theseincludefullyburdenedcostsforthefacilitiesbeingusedbythestaffthatsupportsthe
enterprise.Someexamplesincludeofficespace,furniture,electricity,maintenance,propertytaxes,securityandofficesupplies.
OccupancycostsforspacededicatedtoITfunctions,suchasthedatacenter(includingpower/heatmanagementandraisedfloor/slab
usingoverheadcabletrays,etc.),arealsoincluded."
 ITOpera onalvs.CapitalSpending
IToperationalexpenseisdefinedas:
"Thetotaldaytodayoperationsandmaintenanceexpensesforthisfiscalyearthathavenotbeencapitalized.Thesedonotincludeany
amortizationanddepreciationexpenses."
ITcapitalspendingisdefinedas:
"ThetotalcapitalizedITspendingforthefiscalyear(i.e.,thefullvalueofcapitalizedassetsacquiredinthefiscalyear).Thisincludes
investmentsinnewapplicationdevelopmentandITinfrastructure."

ITSpendingDistribu on:Hardware,So ware,Personnel,Outsourcing

Thedefinitionsofeachcategoryareasfollows:
HardwareExpenses:TheseincludeallhardwareexpensesdescribedintheITspending/budgetdefinition.
SoftwareExpenses:TheseincludeallsoftwareexpensesdescribedintheITspending/budgetdefinition.
Personnel/OccupancyExpenses:Theseinclude:
SalaryandBenefitsExpenses:"Theseshouldincludesalary(includingovertimepay),benefitsand"other"employeecosts,suchas
travelandtrainingforallITFTEs.The"benefitload"shouldincludecostsforbonuses,paidholidays,vacations,medical/dental
coverage,lifeandaccidentinsurance,retirementplans,stockplans,disability,SocialSecurity,unemploymentcompensation,
dependentcare,tuitionreimbursementsandemployeeassistanceprograms(forexample,physicalexams,exerciseprogramsand
similarcosts)."
Occupancy/FacilitiesExpenses:"Theseincludefullyburdenedcostsforthefacilitiesbeingusedbythestaffthatsupportsthe
enterprise.Someexamplesincludeofficespace,furniture,electricity,maintenance,propertytaxes,securityandofficesupplies.
OccupancycostsforspacededicatedtoITfunctions,suchasthedatacenter(includingpower/heatmanagementandraisedfloor/slab
usingoverheadcabletrays,etc.),arealsoincluded."
OutsourcingExpenses:"Theseincludethefeesforthirdpartyoroutsourcingcontractsinwhich"outsourcing"isdefinedas"anysituationin
whichthefulloperationalresponsibilityforITservicesiscompletelyhandedovertoanexternalserviceprovider(forexample,print,
maintenance,procurement,systemmanagement,equipment)."Thisincludesoutsourcedthirdpartydataandvoicetransmission
services/expenses,aswellaspubliccloudbasedITservices,suchasSaaS,PaaS,andIaaS."

ITFunc onalAreaFramework
ThefollowingsectionsprovideguidanceonhowtocountcostsandFTEnumbers,asdefinedbythescopeoftheITfunctionalarea
framework/chartofaccounts.

DataCenter
Note:Datacenter(enterprisecomputing,storageandfacilities)includesWindows,UnixandLinuxservers,mainframe,storageandanyother
platformrunninginthedatacenter.
Hardware
Processingdevices:Includeallhardwareinserverplatformconfigurations,includinginternaldiskstorage,controllers,externaldiskarrays,
tapelibraries,opticaljukeboxes,processors,memory,cardsaswellasotherofflinemediasupplies.
Software
AnnualcostsforhostandvirtualOSlicenses,virtualizationandpartitioningsoftware,utilities,databases,middleware,content/document
managementsearchengines,messaging,communications(TCP/IP,FTPandhostbased)andserversecuritysoftware.
Connectivity
Intradatacenterconnectivity:Thistypicallyincludesrouters,switches,loadbalancers,controllersandappliances.Datacentercommunication
networksarededicatednetworksthataresegregatedorisolatedfromthegeneralpurposeLANsorWANs.Generalpurposeorshared
networkcostsareexcludedfromthedatacenterandshouldbeallocatedtothedatanetwork.
Interdatacenterconnectivity:Thistypicallyincludesthetransmissioncostandhardwarecostforthefiber,usedandunused(darkfiber),and
theswitchesandcontrollers.Datacenterremotecommunicationnetworksarededicatednetworksthataresegregatedorisolatedfromthe
generalpurposeLANorWAN.Generalpurposeorsharednetworkcostsareexcludedfromthedatacenterandshouldbeallocatedtothe
datanetwork.
DisasterRecovery
Includesdisasterrecoverycontracts(computeandcommunications)forhotsites(shellfacilities),dedicatedhardware,softwareand
connectivity.
Facilities/Occupancy
Costsforpower/heatmanagement,furniture,accesssystems,officespace,raisedfloorand/orslabusingoverheadcabletraysetc.
Personnel
Operations/maintenance,engineeringtechnicalservices,planningandprocessmanagement,serviceadministration,managementand
administration,andfacilitiesmanagement.

EndUserComputing
Hardware
Userclientandperipheralhardware:desktop,laptop,thinclientandtabletPCs,personalandsharedprinters,multifunctionalprinters(MFPs
orMFDs),handhelddevicessuchassmartphones,andmessagingdevices.
Transmissioncostsforthesedevicesareexcludedandshouldbeallocatedtothedatanetwork.
ITmanagementhardware:ThisencompasseshardwarethatprimarilysupportsanITprocess,notabusinessoruserprocess.Examplesare
testandtrainingdevices,servershostingnetworkandsystemmanagement(NSM)orassetmanagementsoftware,anddevicesusedbytheIT
staffsupportingtheendusercomputingenvironment.Thisalsoincludessupportingahostedvirtualdesktop(HVD)installation.
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos
Software cToolanddoesnotcons tuteGartnerresearch. Page 20 / 25
Userclientsoftware.
Personalproductivityanddatabase:Thisincludesnewwordprocessors,spreadsheets,presentationpackages,personaldatabasesand
otherpersonalproductivitysoftwareexecutingonclientsystems.Italsoincludesupgrades.
 DisasterRecovery
Includesdisasterrecoverycontracts(computeandcommunications)forhotsites(shellfacilities),dedicatedhardware,softwareand
connectivity.
Facilities/Occupancy
Costsforpower/heatmanagement,furniture,accesssystems,officespace,raisedfloorand/orslabusingoverheadcabletraysetc.
Personnel
Operations/maintenance,engineeringtechnicalservices,planningandprocessmanagement,serviceadministration,managementand
administration,andfacilitiesmanagement.

EndUserComputing
Hardware
Userclientandperipheralhardware:desktop,laptop,thinclientandtabletPCs,personalandsharedprinters,multifunctionalprinters(MFPs
orMFDs),handhelddevicessuchassmartphones,andmessagingdevices.
Transmissioncostsforthesedevicesareexcludedandshouldbeallocatedtothedatanetwork.
ITmanagementhardware:ThisencompasseshardwarethatprimarilysupportsanITprocess,notabusinessoruserprocess.Examplesare
testandtrainingdevices,servershostingnetworkandsystemmanagement(NSM)orassetmanagementsoftware,anddevicesusedbytheIT
staffsupportingtheendusercomputingenvironment.Thisalsoincludessupportingahostedvirtualdesktop(HVD)installation.
Software
Userclientsoftware.
Personalproductivityanddatabase:Thisincludesnewwordprocessors,spreadsheets,presentationpackages,personaldatabasesand
otherpersonalproductivitysoftwareexecutingonclientsystems.Italsoincludesupgrades.
Messagingandgroupware:Thisincludesnewandupgradedemail,groupwareandcollaborationsoftware.
ITManagementSoftware:ThisincludesITsoftwarethatisusedexclusivelyforITfunctionsincludingnetwork,systems,storageandasset
management,trainingandcomputerbasedtraining(CBT)softwareaswellassecuritysoftware(antivirus,personalfirewall,encryption,etc.)as
wellasmobiledevicemanagementwhichofferssoftwaredistribution,policymanagement,inventorymanagement,securitymanagementand
servicemanagementforsmartphonesandmediatablets...Thisalsoincludessupportingahostedvirtualdesktop(HVD)installation.
DisasterRecovery
Annualcostsofhardware,software,connectivity,occupancyandcontractsspecificallydedicatedtodisasterrecoveryforendusercomputing.
Occupancy
Occupancycostsshouldincludefullyburdenedcostsforthefacilitiesbeingusedbythestaffsupportingtheendusercomputingenvironment.
Someexamplesincludeofficespace,furniture,electricity,maintenance,propertytaxes,securityandofficesupplies.
Personnel
Operations/maintenance,engineeringtechnicalservices,planningandprocessmanagement,serviceadministration,managementand
administration.

ITServiceDesk
Hardware
PBX,ACD,interactivevoiceresponse,computertelephonyintegration,ITservicedeskendusercomputingdevices,andITservicedesk
applicationservers.
Software
Thisincludesallsoftwarethatisnecessarytooperatetheservicedesk,suchasexpertknowledgetools,problemmanagementtools,quality
monitoring,selfservice,workforcemanagementsoftware,workflowmanagementsoftwareandservicedeskmanagementportalsoftware.
Transmission
Includesinbound800service,dedicatedtrunking,localservice,outboundlongdistance,Internetaccess(forexample,ITservicedeskportal)
andnetworkingbetweenITservicedesks.
DisasterRecovery
Annualcostsofhardware,software,connectivity,occupancyandcontractsspecificallydedicatedtodisasterrecoveryforITservicedesk.
Occupancy
Facilities/occupancy:Includeslease,depreciation,rent,capitalcosts,transactioncosts,operatingexpenses,repairsandmaintenance,utility
charges,insurance,taxes,constructionandreconstructionofworksettings.
Furniture:Includescostsforfurnitureandofficeequipment(otherthanITassetssuchasPCs,serversandtelecommunicationsequipment).
Personnel
ITservicedeskagentoperations/maintenance,engineeringtechnicalservices,planningandprocessmanagement,serviceadministration,
managementandadministration.

VoiceNetwork
Note:TotalVoiceNetworkincludesvoicepremisetechnologyandwideareavoicenetworkcostsaswellasdedicatedcellular(mobile)voice
networkcosts.
Hardware
Wideareavoicenetworkhardware:Switchingandrouting,aswellasterminatinghardware.Terminatinghardwareincludesmicrowave,
satellite,compression,multiplexer/channelbank,PBXnetworkinterfacecardandchannelserviceunit/dataserviceunit(CSU/DSU).
Voicepremise:Telephonesystemequipment(suchasvoiceswitch/serverandperipherals,includingmodulesanduninterruptiblepower
supply[UPS]),premisesystemphones(voiceonlysmartphonessuchasBlackBerry,iPhoneandAndroidbaseddevicesareexcludedand
shouldbeallocatedtotheendusercomputingenvironment),voicemailhardware(forexample,processorsandstorage)andmessage
authenticationcontrol(MAC)materials.
ITmanagement(networkoperationscenter[NOC]):Thisincludeshardwarethatislocatedwithinaclient'sNOCandisusedtosupporta
client'scentrallymanagedvoiceinfrastructure/network.Thisincludesclientdevices(PCsonNOCdesktops)aswellasservers(NOC),located
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 21 / 25
withintheNOCorelsewhere,butusedprimarilybytheNOCtosupportthevoicenetworkinfrastructure.Thecostsfortheseclient
devices/serversmayneedtobeproratedbetweenvoiceanddataservices,dependingonaclient'sNOCenvironment.
Software
Switch/voiceserverandperipherals(e.g.,automaticcalldistribution[ACD],voiceresponseunit[VRU])andvoicemailsoftwarecosts.
 Annualcostsofhardware,software,connectivity,occupancyandcontractsspecificallydedicatedtodisasterrecoveryforITservicedesk.
Occupancy
Facilities/occupancy:Includeslease,depreciation,rent,capitalcosts,transactioncosts,operatingexpenses,repairsandmaintenance,utility
charges,insurance,taxes,constructionandreconstructionofworksettings.
Furniture:Includescostsforfurnitureandofficeequipment(otherthanITassetssuchasPCs,serversandtelecommunicationsequipment).
Personnel
ITservicedeskagentoperations/maintenance,engineeringtechnicalservices,planningandprocessmanagement,serviceadministration,
managementandadministration.

VoiceNetwork
Note:TotalVoiceNetworkincludesvoicepremisetechnologyandwideareavoicenetworkcostsaswellasdedicatedcellular(mobile)voice
networkcosts.
Hardware
Wideareavoicenetworkhardware:Switchingandrouting,aswellasterminatinghardware.Terminatinghardwareincludesmicrowave,
satellite,compression,multiplexer/channelbank,PBXnetworkinterfacecardandchannelserviceunit/dataserviceunit(CSU/DSU).
Voicepremise:Telephonesystemequipment(suchasvoiceswitch/serverandperipherals,includingmodulesanduninterruptiblepower
supply[UPS]),premisesystemphones(voiceonlysmartphonessuchasBlackBerry,iPhoneandAndroidbaseddevicesareexcludedand
shouldbeallocatedtotheendusercomputingenvironment),voicemailhardware(forexample,processorsandstorage)andmessage
authenticationcontrol(MAC)materials.
ITmanagement(networkoperationscenter[NOC]):Thisincludeshardwarethatislocatedwithinaclient'sNOCandisusedtosupporta
client'scentrallymanagedvoiceinfrastructure/network.Thisincludesclientdevices(PCsonNOCdesktops)aswellasservers(NOC),located
withintheNOCorelsewhere,butusedprimarilybytheNOCtosupportthevoicenetworkinfrastructure.Thecostsfortheseclient
devices/serversmayneedtobeproratedbetweenvoiceanddataservices,dependingonaclient'sNOCenvironment.
Software
Switch/voiceserverandperipherals(e.g.,automaticcalldistribution[ACD],voiceresponseunit[VRU])andvoicemailsoftwarecosts.
ITmanagement(NOC):SoftwareusedbytheNOCprimarilytosupport/manageaclient'svoicenetworks.Thecostsforthissoftwaremay
needtobeproratedbetweenvoiceanddataservices,dependingonaclient'sNOCenvironment.
Transmission
Includesalloutboundandinboundtransmissioncosts.Italsoincludestheannualcostforlocalcentralofficelines(whereapplicable)aswell
ascellular(mobile)voiceonlytransmissioncosts.
DisasterRecovery
Disasterrecoverycontracts(communications)forhotsites(shellfacilities),dedicatedhardware,software,andconnectivity.
Occupancy(ForPersonnelOnly)
Occupancycostsshouldincludefullyburdenedcostsforthefacilitiesbeingusedbythestaffsupportingthevoicenetworkservice.Some
exampleswouldincludeofficespace,furniture,electricity,maintenance,propertytaxes,securityandofficesupplies.Occupancyforhardware
(forexample,closetspace)isspecificallyexcluded(thatis,occupancycostsshouldapplyonlytothepeoplesupportingaclient'svoice
network).
Personnel
Operations/maintenance,engineeringtechnicalservices,planningandprocessmanagement,serviceadministration,managementand
administration.

DataNetwork
Note:TotalDataNetworkincludesWAN,LANandInternetAccessServices(IAS)aswellasdedicatedcellular(mobile)datanetworkcosts.
WAN:Connectivityandtransmissionofbusinesscriticaldatabetweenenterpriselocationsandbusinesspartners
LAN:Accountsfortheprovisioningofcommunicationsandconnectivitytocriticalbusinesssystemswithinenterprisesitesandcampuses
(Note:Costsassociatedwithpermanentbuildingcabling,horizontalandvertical,areexcluded.Likewise,costsforanyinterbuildingcabling
copperand/orfiberthatwouldbefoundonacampusarealsoexcluded.)
IAS:InternetAccessServices(IAS):EnterpriseaccesstotheglobalInternet,fortheuseofitspersonnelandfortheuseofitsexternal
customerstoaccessenterprisewebsites.
Hardware
Securityhardware:Dedicateddatanetworkfirewallhardware/servers,intrusion/detectionserversanddevices,aswellasencryption
hardware.
NOChardware:ThisincludeshardwarethatislocatedwithinaNOCtosupportacentrallymanageddatanetworkinfrastructure/network.This
includestestequipmentandremotemonitoringequipment,clientdevices(PCsonNOCdesktops)andnetworkmanagementservers(NOCs).
Switching,routingandwirelesshardware,includingswitchesandrouters,multiplexers,satelliteequipment,boundary(branch)routers,
backboneroutersandbridges,andwirelessaccesspoints.
Otherdedicateddatanetworkhardware,includingDomainNameSystem(DNS)andDynamicHostConfigurationProtocol(DHCP)servers,
optimizationequipmentsuchasInternetloadbalancinghardware,UPS,MAChardwareandMACcable(closettodesktop).
Someofthismayneedtobeproratedbetweenthevoiceanddatanetwork.
Software
Securitysoftware:Dedicateddatanetworkfirewallsoftware,intrusion/detectionsoftwareaswellasencryptionsoftware.
NOCsoftware:AllNSMsoftwarecostsrelatedtotheNOC'ssupportofthedatanetworkinfrastructure/network.
Transmission
Annualdatanetworktransmissioncosts,suchascarrierdigitalservicesincludingFrameRelayaccess,portsandPVCs(PermanentVirtual
Circuits),ATM(AsynchronousTransferMode)access,portsandPVCs,MPLS(MultiprotocolLabelSwitching)access,ports,andCARs
(CommittedAccessRates)whichalsoincludesspecificchargesforQualityofService(QoS)commitments,sometimesreferredtoastraffic
shaping,T3/E3,dialbackupservice,SynchronousOpticalNetwork(SONET),metropolitanEthernet,anddarkfiber,aswellasannualcostfor
circuitsconnectedtotheInternetserviceproviderandcellular(mobile)datatransmissioncosts.
DisasterRecovery
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 22 / 25
Disasterrecoverycontracts(communications)forhotsites(shellfacilities),dedicatedhardware,software,andconnectivity.
Occupancy(ForPersonnelOnly)
Thesecostsshouldincludefullyburdenedcostsforthefacilitiesbeingusedbythestaffsupportingthedatanetwork.Someexamplesinclude
officespace,furniture,electricity,maintenance,propertytaxes,securityandofficesupplies.
 Occupancy(ForPersonnelOnly)
Occupancycostsshouldincludefullyburdenedcostsforthefacilitiesbeingusedbythestaffsupportingthevoicenetworkservice.Some
exampleswouldincludeofficespace,furniture,electricity,maintenance,propertytaxes,securityandofficesupplies.Occupancyforhardware
(forexample,closetspace)isspecificallyexcluded(thatis,occupancycostsshouldapplyonlytothepeoplesupportingaclient'svoice
network).
Personnel
Operations/maintenance,engineeringtechnicalservices,planningandprocessmanagement,serviceadministration,managementand
administration.

DataNetwork
Note:TotalDataNetworkincludesWAN,LANandInternetAccessServices(IAS)aswellasdedicatedcellular(mobile)datanetworkcosts.
WAN:Connectivityandtransmissionofbusinesscriticaldatabetweenenterpriselocationsandbusinesspartners
LAN:Accountsfortheprovisioningofcommunicationsandconnectivitytocriticalbusinesssystemswithinenterprisesitesandcampuses
(Note:Costsassociatedwithpermanentbuildingcabling,horizontalandvertical,areexcluded.Likewise,costsforanyinterbuildingcabling
copperand/orfiberthatwouldbefoundonacampusarealsoexcluded.)
IAS:InternetAccessServices(IAS):EnterpriseaccesstotheglobalInternet,fortheuseofitspersonnelandfortheuseofitsexternal
customerstoaccessenterprisewebsites.
Hardware
Securityhardware:Dedicateddatanetworkfirewallhardware/servers,intrusion/detectionserversanddevices,aswellasencryption
hardware.
NOChardware:ThisincludeshardwarethatislocatedwithinaNOCtosupportacentrallymanageddatanetworkinfrastructure/network.This
includestestequipmentandremotemonitoringequipment,clientdevices(PCsonNOCdesktops)andnetworkmanagementservers(NOCs).
Switching,routingandwirelesshardware,includingswitchesandrouters,multiplexers,satelliteequipment,boundary(branch)routers,
backboneroutersandbridges,andwirelessaccesspoints.
Otherdedicateddatanetworkhardware,includingDomainNameSystem(DNS)andDynamicHostConfigurationProtocol(DHCP)servers,
optimizationequipmentsuchasInternetloadbalancinghardware,UPS,MAChardwareandMACcable(closettodesktop).
Someofthismayneedtobeproratedbetweenthevoiceanddatanetwork.
Software
Securitysoftware:Dedicateddatanetworkfirewallsoftware,intrusion/detectionsoftwareaswellasencryptionsoftware.
NOCsoftware:AllNSMsoftwarecostsrelatedtotheNOC'ssupportofthedatanetworkinfrastructure/network.
Transmission
Annualdatanetworktransmissioncosts,suchascarrierdigitalservicesincludingFrameRelayaccess,portsandPVCs(PermanentVirtual
Circuits),ATM(AsynchronousTransferMode)access,portsandPVCs,MPLS(MultiprotocolLabelSwitching)access,ports,andCARs
(CommittedAccessRates)whichalsoincludesspecificchargesforQualityofService(QoS)commitments,sometimesreferredtoastraffic
shaping,T3/E3,dialbackupservice,SynchronousOpticalNetwork(SONET),metropolitanEthernet,anddarkfiber,aswellasannualcostfor
circuitsconnectedtotheInternetserviceproviderandcellular(mobile)datatransmissioncosts.
DisasterRecovery
Disasterrecoverycontracts(communications)forhotsites(shellfacilities),dedicatedhardware,software,andconnectivity.
Occupancy(ForPersonnelOnly)
Thesecostsshouldincludefullyburdenedcostsforthefacilitiesbeingusedbythestaffsupportingthedatanetwork.Someexamplesinclude
officespace,furniture,electricity,maintenance,propertytaxes,securityandofficesupplies.
Personnel
Operations/maintenance,engineeringtechnicalservices,planningandprocessmanagement,serviceadministration,managementand
administration.

Applications
ApplicationDevelopment
NewcodeforanewapplicationandFunctionalenhancementstothecurrentcodethattakemorethantwopersonweeks,orthattypicallyadd
eightfunctionpointsormore.A"functionalenhancement"isdefinedas"achangemadeforauserthatallowsadditionalcapabilities(froma
businesspointofview)thatwerenottherebefore.Insomeenvironments,majorenhancementscanactuallybeaddedinlessthantwoperson
weeks.Ifthisisthecase,andeightfunctionpointsormoreareadded(about800linesofCOBOLor300linesofadatabaselanguage),then
thisisstillcategorizedasdevelopment.
ApplicationSupport
Bugfixesofanysizeorduration,maintenanceofhardcodeddataortables(includingfieldsizechanges)embeddedwithintheprograms
(anysizeorduration),andfunctionalenhancementstocurrentcodethattakelessthantwopersonweeksandtypicallyaddfewerthaneight
functionpoints,oranyprojectthatproducesnonewbusinessfunctionalityfortheuser.
A"functionalenhancement"isdefinedas"achangemadeforauserthatallowsadditionalcapabilities(fromabusinesspointofview)that
werenottherebefore."Insomeenvironments,majorenhancementscanactuallycanbeaddedinlessthantwopersonweeks.Ifthisisthe
case,andmorethaneightfunctionpointsormoreareadded(about800linesofCOBOLor300linesofadatabaselanguage),thenthis
enhancementisrecordedasaproject,markedasanenhancementandcategorizedasdevelopmentratherthansupport.
Hardware
Thisincludesonlyhardware(mainframes,servers,endusercomputingdevices)usedbytheapplicationdevelopmentorsupportstaff
memberstodotheirjobs(thatis,clientdevicesaswellasserversandaportionofthemainframeusedforapplicationdevelopmentand
testing).Thisexcludesenduserorproductionhardware.
Software
Developmentandsupportsoftwarerequiredbytheapplicationdevelopmentandsupportstaffmemberstodotheirjobs.Itmayincludethe
languages/compilers/databases,development/testingtoolsandITmanagementsoftwaretools,suchasprojectestimatorsandproject
schedulers.
Businessfunctionalitysoftware:Forapplicationsupport,thisincludesthemaintenancecostofofftheshelfvendorpackages,aswellthe
2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 23 / 25
annualizedcostofthesoftware.
Occupancy
Fullyburdenedcostsforthefacilitiesusedbythedevelopmentorsupportstaffandincludedinthisanalysisview.Someexampleswould
includeofficespace,furniture,electricity,maintenance,propertytaxes,securityandofficesupplies.
 DisasterRecovery
Disasterrecoverycontracts(communications)forhotsites(shellfacilities),dedicatedhardware,software,andconnectivity.
Occupancy(ForPersonnelOnly)
Thesecostsshouldincludefullyburdenedcostsforthefacilitiesbeingusedbythestaffsupportingthedatanetwork.Someexamplesinclude
officespace,furniture,electricity,maintenance,propertytaxes,securityandofficesupplies.
Personnel
Operations/maintenance,engineeringtechnicalservices,planningandprocessmanagement,serviceadministration,managementand
administration.

Applications
ApplicationDevelopment
NewcodeforanewapplicationandFunctionalenhancementstothecurrentcodethattakemorethantwopersonweeks,orthattypicallyadd
eightfunctionpointsormore.A"functionalenhancement"isdefinedas"achangemadeforauserthatallowsadditionalcapabilities(froma
businesspointofview)thatwerenottherebefore.Insomeenvironments,majorenhancementscanactuallybeaddedinlessthantwoperson
weeks.Ifthisisthecase,andeightfunctionpointsormoreareadded(about800linesofCOBOLor300linesofadatabaselanguage),then
thisisstillcategorizedasdevelopment.
ApplicationSupport
Bugfixesofanysizeorduration,maintenanceofhardcodeddataortables(includingfieldsizechanges)embeddedwithintheprograms
(anysizeorduration),andfunctionalenhancementstocurrentcodethattakelessthantwopersonweeksandtypicallyaddfewerthaneight
functionpoints,oranyprojectthatproducesnonewbusinessfunctionalityfortheuser.
A"functionalenhancement"isdefinedas"achangemadeforauserthatallowsadditionalcapabilities(fromabusinesspointofview)that
werenottherebefore."Insomeenvironments,majorenhancementscanactuallycanbeaddedinlessthantwopersonweeks.Ifthisisthe
case,andmorethaneightfunctionpointsormoreareadded(about800linesofCOBOLor300linesofadatabaselanguage),thenthis
enhancementisrecordedasaproject,markedasanenhancementandcategorizedasdevelopmentratherthansupport.
Hardware
Thisincludesonlyhardware(mainframes,servers,endusercomputingdevices)usedbytheapplicationdevelopmentorsupportstaff
memberstodotheirjobs(thatis,clientdevicesaswellasserversandaportionofthemainframeusedforapplicationdevelopmentand
testing).Thisexcludesenduserorproductionhardware.
Software
Developmentandsupportsoftwarerequiredbytheapplicationdevelopmentandsupportstaffmemberstodotheirjobs.Itmayincludethe
languages/compilers/databases,development/testingtoolsandITmanagementsoftwaretools,suchasprojectestimatorsandproject
schedulers.
Businessfunctionalitysoftware:Forapplicationsupport,thisincludesthemaintenancecostofofftheshelfvendorpackages,aswellthe
annualizedcostofthesoftware.
Occupancy
Fullyburdenedcostsforthefacilitiesusedbythedevelopmentorsupportstaffandincludedinthisanalysisview.Someexampleswould
includeofficespace,furniture,electricity,maintenance,propertytaxes,securityandofficesupplies.
Personnel
Applicationdevelopment:Thisincludesstaffinvolvedindevelopingnewapplications,enhancingexistingapplications,installingnew
packagesandinstallingmajorfunctionalenhancementstoexistingpackages.
Applicationsupport:Thisincludesstaffinvolvedinsupportingapplicationsthatexistwithinthecurrentportfolio.Italsoincludespersonnelwho
areresponsibleforfixingprogrammingproblemsuncoveredwhenapplicationsarerunninginproduction.Itdoesnotincludeanypersonnelwho
areresponsibleforrunningtheproductionapplications.Ifanupgradeforapackagedapplicationprimarilycontainsfixesforexistingproblems,
thentheeffortsinvolvedininstallingsuchamaintenanceupgradeareincludedinapplicationsupport.

CorporateITManagement
OnlyincludefunctionsthatareatalevelwithintheITorganizationthat,afterbesteffort,cannotbeallocatedtoanITfunctionalarea."
OfficeoftheCIO/CTO
Thisincludesthe"Clevel"ITmanagement,includingtheCIOandCTOfunctions.AlsoincludedherearethedirectreportsoftheCIO,who
spendthemajorityoftheirtimeprovidingenterprisewidesupportotherthanthefunctionsoutlinedbelow(thatis,specialprojects).
ITHumanResources
ThisincludesresourcesdedicatedtohumanresourceissuessurroundingtherecruitingandretentionofITstaff.
ITMarketing
ThisincludesresourcesdedicatedtomarketingthecapabilitiesoftheITorganizationtothebusinessunits.
TechnologyPlanningandProcessManagement
Thisincludesactivitiesrelatedtotheplanningforandmanagementofcurrentandfuturetechnologyneeds,andtheestablishmentofpolicies
andprocessesrelatingtotechnology.Thisalsoincludes,butisnotlimitedto,systemsresearch,productmanagement,technologyevaluation
andpurchasedecisionmaking,theestablishmentofprocessessurroundingsecurityandvirusprotection,andbusinesscontinuity/recovery.
DisasterRecovery
Thisincludesresourcesdedicatedtoplanning,testingandimplementingcontingencyproceduresacrossallITfunctions.Thisalsoincludes
thestaffdedicatedtosafeguardingtheenterprise'sabilitytocontinueoperationsofvitalbusinessfunctionsfollowingphysicaldamageorother
catastrophesthatimpactbusinessfacilities.Responsibilitiesinclude:
Maintainingdisasterrecoverydocumentation
Negotiatingcontingencysitearrangementsandservingasliaisonwiththevendor
Managingoffsitedataretention
Security
Thisincludesresourcesthatoverseethedevelopmentofstandardsandproceduresforensuringoverallnetworkandsystemsintegrity.

2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 24 / 25

ITFinanceandAdministration
OnlyincludefunctionsthatareatalevelwithintheITorganizationthat,afterbesteffort,cannotbeallocatedtoanITfunctionalarea.
ITAdministration
 includeofficespace,furniture,electricity,maintenance,propertytaxes,securityandofficesupplies.
Personnel
Applicationdevelopment:Thisincludesstaffinvolvedindevelopingnewapplications,enhancingexistingapplications,installingnew
packagesandinstallingmajorfunctionalenhancementstoexistingpackages.
Applicationsupport:Thisincludesstaffinvolvedinsupportingapplicationsthatexistwithinthecurrentportfolio.Italsoincludespersonnelwho
areresponsibleforfixingprogrammingproblemsuncoveredwhenapplicationsarerunninginproduction.Itdoesnotincludeanypersonnelwho
areresponsibleforrunningtheproductionapplications.Ifanupgradeforapackagedapplicationprimarilycontainsfixesforexistingproblems,
thentheeffortsinvolvedininstallingsuchamaintenanceupgradeareincludedinapplicationsupport.

CorporateITManagement
OnlyincludefunctionsthatareatalevelwithintheITorganizationthat,afterbesteffort,cannotbeallocatedtoanITfunctionalarea."
OfficeoftheCIO/CTO
Thisincludesthe"Clevel"ITmanagement,includingtheCIOandCTOfunctions.AlsoincludedherearethedirectreportsoftheCIO,who
spendthemajorityoftheirtimeprovidingenterprisewidesupportotherthanthefunctionsoutlinedbelow(thatis,specialprojects).
ITHumanResources
ThisincludesresourcesdedicatedtohumanresourceissuessurroundingtherecruitingandretentionofITstaff.
ITMarketing
ThisincludesresourcesdedicatedtomarketingthecapabilitiesoftheITorganizationtothebusinessunits.
TechnologyPlanningandProcessManagement
Thisincludesactivitiesrelatedtotheplanningforandmanagementofcurrentandfuturetechnologyneeds,andtheestablishmentofpolicies
andprocessesrelatingtotechnology.Thisalsoincludes,butisnotlimitedto,systemsresearch,productmanagement,technologyevaluation
andpurchasedecisionmaking,theestablishmentofprocessessurroundingsecurityandvirusprotection,andbusinesscontinuity/recovery.
DisasterRecovery
Thisincludesresourcesdedicatedtoplanning,testingandimplementingcontingencyproceduresacrossallITfunctions.Thisalsoincludes
thestaffdedicatedtosafeguardingtheenterprise'sabilitytocontinueoperationsofvitalbusinessfunctionsfollowingphysicaldamageorother
catastrophesthatimpactbusinessfacilities.Responsibilitiesinclude:
Maintainingdisasterrecoverydocumentation
Negotiatingcontingencysitearrangementsandservingasliaisonwiththevendor
Managingoffsitedataretention
Security
Thisincludesresourcesthatoverseethedevelopmentofstandardsandproceduresforensuringoverallnetworkandsystemsintegrity.

ITFinanceandAdministration
OnlyincludefunctionsthatareatalevelwithintheITorganizationthat,afterbesteffort,cannotbeallocatedtoanITfunctionalarea.
ITAdministration
ThisincludesdirectadministrativeandclericalsupporttoenterpriselevelIT.Positionsincludesecretary,receptionistandadministrative
assistant.
BudgetandChargeback
ThisareaestablishestheoverallITbudget,monitorsactualexpensesversusthebudget,arrangesfinancingforpurchasesandperforms
financialreportingtootherenterpriseareas.Staffmembersalsohandletheoperationofthechargebacksystem.Positionsincludefinancial
analystandchargebackadministrator.
AssetManagement
Tracking:Thisareaprovidestheadministrativesupportfortrackingsystemsandsystemcomponents.Itaccountsforlaborandcontractcosts
formanagingdepreciationrecordsandleasecontracts,performingassetinventories(physicalorautomaticmanagement),assetidentification
andtracking,assetdatabasemanagement,changerecordingandreconciliation.Italsoincludesthecreationandmaintenanceofanupto
daterecordofinstallations,moves,adds,changes,removalsandfinaldisposalofallassets(forexample,hardware,softwareandcircuits).The
recordcontainsinformationforlocating,assessing,auditing,troubleshooting,countingandassigningassets,orperformingothertechnicaland
businessfunctionswithouttheneedtorepeatedlyvisittheassetlocationorreassembledatarecords.Italsoincludesthedeterminationofan
asset'susefullife,includingplanningfortheinstallation,upgrade,andremoval/disposaloftheassetandexecutingtheplan.
Procurement:Thisareasolicitsbids,negotiatespurchasingagreements,establishespurchaseorders,validatesvendors'bills,coordinates
withaccountspayableforpaymentsandhandlescontractadministration.
QualityAssurance
Thisincludesstaffresponsibilityformonitoring,trackingandrecommendingsolutionsforimprovingthecontentanddeliveryofservices
providedbythecustomerservicecontactcenter.
Training
ThisreferstotheprimarysourceforthedeliveryoftrainingwithintheITorganizationandforendusersinthebusinessunits.Thisareamay
alsopreparethetrainingmaterials,evaluateemployeeskillsandassistinthecreationofcustomtrainingprogramsfortheorganization.

2016Gartner,Inc.and/oritsaliates.Allrightsreserved.CreatedbyaGartnerDiagnos cToolanddoesnotcons tuteGartnerresearch. Page 25 / 25