Percent of IT Spend on Labor - Data Center Management Metrics - IT Efficiency Metrics - Dell Community

Percent of IT Spend on Labor

IT Efficiency Metrics

IT Efficiency Metrics
The clear answer to today’s IT challenges is to increase IT efficiency throughout the infrastructure, from the desktop to the data center. This Wiki is intended to provide a forum where efficiency metrics, goals and guidelines can be shared.

Data Center Management Metrics

Metrics concerning the management of costs, hardware, software, processes, and people.
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Percent of IT Spend on Labor

Data Center Management Metrics

GOAL or METRIC: Spend 38% or Less of the Total IT Budget on Labor

RATIONALE: Efficient IT organizations are more streamlined, automated, and simplified.  As a result, they spend less on labor.  So a goal of 38% of IT spend or less on labor, as noted by Donna Scott, VP and Distinguished Gartner Analyst, is a key measure of IT efficiency 

SIDE NOTES

  • A side benefit of greater IT efficiency is that less experienced staff can manage a greater amount of the infrastructure, since it is more standardized and simplified.  This frees more experienced staff to work on more complex tasks.  Standardization and simplification are a essential part of lowering staff costs.

SOURCE:  Donna Scott, VP and Distinguished Analyst, Gartner, in Dell video on june 15, 2011


REFERENCES: 

38%

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Comments
  • Arbitrary cost goals do not match reality.  They also do not take into account the cost of training and retention of qualified IT Staff.

  • To ensure that all employees are given opportunities to grow and learn, the Bank of Montreal’s Institute of Learning was established at a cost exceeding $50 million. The goal of providing five days of training and education to every employee each year has been met for several years.To focus on performance, each department and every employee have performance targets and measures on such factors as customer service,return on equity, and profitability.  Throwing out a percentage of budget to establish an efficiency standard ignores the value of retention of  trained, qualified, motivated staff.