Is "IT as a percentage of sales" a good benchmark?
April 7, 2010
Hosted by Sanjog Aul
Using "IT as a percentage of sales" can be misleading. For example, if a company is highly integrated and sales go down due to externalities, IT may look inefficient and costly. If part of the company is spun off, IT may look more efficient while actual IT functioning remains the same. A company that uses a large supplier base, may have a small IT that looks efficient simply because some IT costs are hidden in the cost of purchased components. How accurate is the "IT as a percentage of sales" statistic, and should it have the prominence it has, as a benchmark?
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Sanjog Aul is a Certified Information Systems Auditor and the Executive Vice President with AVVAL, an Oakbrook, IL based professional services firm providing IT staffing and outsourcing services. With educational background in Computer Science and extensive consulting experience in IT Management and Implementation, Sanjog is known to dig deeper into current and chronic technology management/implementation issues to find the root cause. During his career, Sanjog has helped numerous businesses learn how to use technology for competitive advantage.