Industry benchmarks: how does your IT provider compare?

R & G Technologies | September 28, 2015

Are you a non-technical IT contact tasked with managing your IT provider? In this article, we’ll share some industry benchmarks so you can compare how your provider is performing compared to other organisations.

industry_benchmarks

This review will break down the industry benchmarks across four categories: IT spend, client satisfaction, service deliverability, and managed services cost.

1. IT spend

According to a report compiled by Connecting Up, average IT spend for Australian not-for-profit organisations is 5% of total operating expenditure (median spend is 3%)

it-spend-nfp

Connecting Up found that Australian organisations spend around $4,319 FTE per year. 

If you’re spending less than 5% on IT, you should consider how important it is to your organisation’s success and how you can increase spending to at least 5% to take advantage of tools and services that will help you operate more efficiently.

2. Client Satisfaction

In August 2015, Client Heartbeat surveyed clients of Australian IT providers to determine how happy they were with their IT provider. The survey asked clients to rate their provider on a scale of 1 to 10 across 5 areas: promptness, accuracy, partnership, advice and overall performance.

Here are their findings:

  • Promptness: 8.3/10
  • Accuracy: 8.3/10
  • Partnership: 8.4/10
  • Advice: 8.6/10
  • Overall: 8.4/10

How would you rate your IT provider across these five areas? If you’re scoring them below any of these industry benchmarks, you might want to start exploring some alternative providers.

3. Service Delivery

Pink Elephant, a company that measures IT management metrics, presented their results in the form of benchmarks for incident, problem and change-management metrics based on voluntary survey responses from IT managers across the globe between 2010 and 2012.

Here are some of the interesting findings:

Incident management

The report found that the number of incidents an organisation experiences is influenced by the organisation’s size, number of users and years of having incident management practice place.  The numbers below represent an average of the total incidents per month during the survey period unless otherwise indicated.

  • First contact resolution: 74%
  • Incident maximum priority: 6%
  • Incident resolution within expected interval: 82%

Problem management

  • Problems with known errors: 48.8%
  • Problems Assigned Highest Priority: 8%
  • Problem / known error age at closure: 4.4 months (average of entire survey period)
  • Problems without known errors: 42%

Change management

  • Requests for change with no issues: 87%
  • Requests for change / right the first time: 90%

Among other interesting metrics, an average 90% changes were executed right first time (no rollback or cancelation and as scheduled). This appears to indicate that 10% of all changes fail in at least one of the three ways – a pretty  disappointing benchmark.

Read the full report: Pink Elephant IT Management Metrics Benchmarks

4. Managed IT Services Cost

Kaseya surveyed 700 managed IT service providers to determine a few benchmarks for pricing. Here’s what they found (in AUD):

  • Average hourly rate: $92 (level 1), $120 (level 2), $171 (level 3)
  • Average desktop support and maintenance charge: $51-65
  • Average server support and maintenance charge: $160-195
  • Average billing fee per user: 39% charge, between $65-130 per user
  • Average size of managed service contract: between $1300-6500

Read more: Kaseya Global Pricing Survey

Conclusion

Use these benchmarks to see how your IT provider stacks up against other companies in Australia. If your provider isn’t meeting your expectations in some or all of these areas, you should evaluate what you are missing and consider alternative providers.

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