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How % of their volume$, should a small cie spend on IT?
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Forum:
Visual FoxPro
Category:
Contracts, agreements and general business
Miscellaneous
Thread ID:
00914409
Message ID:
00915163
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12
The client is a collection company so the information systems are very important for them. They use it intensively.

>>I have a client that is convince that he should spend 5% of his business revenue in IT, excluding hardware. Does it make sense ? Does anybody know where to find numbers on that.
>>
>>Thanks
>
>Heya Eric - as Steve and Jordan have pointed out - it depends on the industry.
>
>For example - a telecom billing firm might spend 30% of its total revenue per year on IT.
>
>A glass bottle manufacturing firm might spen 0.5 to 2.0 percent.
>
>Could you tell us a bit more about the client ?
>
>OTOH - metrics are cool .
>
>If the paper shuffling represents 80 percent of the employee workload, and automation / software development reduces that workload to 4 percent - then there is a definite cost savings in paperwork shuffling due to automation.
>
>BUT - you are looking for cited metrics ? It depends on the type of company.
>
>regards [Bill]
Eric Crespin
Consultant
PC PLUS Software Inc.
www.pcplus.ca
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