By reducing technology complexity and realigning talent, among other things, World-class IT organizations deliver services at 22% lower IT costs (FIG. 1) with greater effectiveness and require 9% fewer full-time-equivalents (FTEs) per employee (FIG. 2). In fact, the typical large company can save up to $36 million by closing the gap to world-class IT performance – freeing resources to focus on higher-value activity and innovation.

Unrivaled insights that drive process improvement and IT transformation

Our IT benchmarking services provide access to the unparalleled information and resources that are part of The Hackett Group's proprietary Best Practice Intelligence Center™ – a repository of critical processes, benchmark data and business best practices developed from more than 11,000 business benchmarking projects conducted at the world's leading companies. Our unrivaled benchmark data gives insight into the performance and business best practices of peers and world-class IT organizations. Our IT benchmark studies provide a fast and objective way for executives to:

  • Understand current capabilities
  • Assess performance relative to business value and strategy
  • Identify and prioritize improvement opportunities that offer the greatest potential return
  • Highlight and address areas of risk
  • Plan, manage and accelerate your journey to world-class performance

What makes the difference?

Two characteristics distinguish The Hackett Group's IT benchmark studies: The world's largest repository of empirically proven best practices, and our proven approach for assessing performance and value. Our business benchmarking services focus on three drivers of world-class IT performance:

  • Factors that drive demand for IT function services, such as complexity (geographies, legal entities, regulatory environment) and volatility (rate of change, M&A activity)
  • Structural factors such as business practices, strategies, service delivery model, staffing levels, skill sets, and technologies used
  • Execution/realization of value, including performance as measured by costs, productivity, resource allocation and value

Then, we use proprietary business benchmarking methodology to quantify your gap to world class – comparing your IT function's ability to execute efficiently (cost and productivity) and effectively (quality and value). We examine comparable organizations so you can see how the best do it and define continuous process improvement steps relevant to your own IT function.

Our analysts use IT metrics such as these to calculate world-class performance
Efficiency Effectiveness
  • Functional and process costs and staffing levels
  • Staff time allocation by process
  • Labor costs
  • Hardware platform complexity
  • Total cost per end user
  • Number of applications
  • Percent of business on the primary ERP application
  • Percent of projects delivered to requirements
  • IT impact on the business strategy
  • Self-service enablement
  • SLA performance
  • Project return on investment (ROI)
  • Planning and staffing staff allocation

Impact beyond HR function borders

Business processes and systems inextricably link your IT function with other enterprise functions. Process improvements in one area may have a ripple effect on others; for example, improved IT controls may result in more reliable data for decision-making in other business area.

Our business benchmarking approach examines efficiency and effectiveness not just within the IT function, but also with a view toward the impact across your enterprise.

The Hackett Performance Exchange™ is a powerful business performance management tool, automatically leverages data from SAP® or Oracle® systems to calculate a cost improvement opportunity, compare performance across the enterprise, and produce timely end-to-end process insights – overnight.

Key deliverables:

  • An executive summary that highlights key findings and recommendations
  • A detailed comparison of finance performance to the statistical median and world-class organizations, across the processes measured
  • Analysis of the root causes of complexity and assessment of the value of finance services delivered, drawing from benchmark comparisons and stakeholder feedback
  • Identification of best practices required to achieve targeted efficiencies and identification of areas at risk due to under- and over-investment
  • Targeted recommendations presented in boardroom-level, results-oriented business terms

Learn More

Depending on objectives, approach and business complexity, a benchmark can typically be conducted in about seven to 10 weeks. To learn about The Hackett Group's IT business benchmarking services, contact us.