Best Practice Report

The Uses, Misuses, And Abuses Of Tech Budget And Spending Benchmarks

How (And Whether) To Organize A Tech Benchmarking Exercise

April 14th, 2022
Sam Higgins, Principal Analyst
Sam Higgins Principal Analyst
Martha Bennett, VP, Principal Analyst
Martha Bennett VP, Principal Analyst
John Brand, VP, CIO Exec Partner
John Brand VP, CIO Exec Partner
Bobby Cameron, Vice President, Principal Analyst
Bobby Cameron Vice President, Principal Analyst
With contributors:
Matthew Guarini , Frederic Giron , Rachel Kwon , Michael Kearney , Ian McPherson

Summary

Companies often task tech executives with establishing tech budget and spending benchmarks. But these benchmarks seldom provide more than reference points for other companies’ tech spending structures, which frequently have different business contexts. This report helps tech executives understand the limitations of tech budget and spending benchmarks and how to use business value to determine whether their tech organization’s spending supports the company’s overall business objectives.

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