IT Intensity................................................................................................................................

15
IT Spending Percent Change, 2009-2010.................................................................................16
IT Spending as a Percent of Revenue 2010..........................................................................18
Agility: Revenue Percent Change vs. IT Spending Percent Change, 2009-2010........................20
IT Spending as a Percent of Operating Expense 2010.........................................................22
Agility: Operating Expense Percent Change vs. IT Spending Percent Change, 2009-2010.......24
IT Spending per Employee 2010..........................................................................................26
IT Spending as a Percent of Revenue vs. Operating Profit 2010...........................................28
2011 Outlook: A Slow Return to Spending.....................................................................................29
IT Spending Percent Change, 2010-2011.................................................................................29
IT Spending as a Percent of Revenue 2011..........................................................................33
IT Spending as a Percent of Operating Expense 2011.........................................................35
IT Spending per Employee 2011..........................................................................................37
IT Budget Distributions: Uncover the Facts.....................................................................................39
IT Operational vs. Capital Spending..........................................................................................39
Strategic IT Spending Categories: IT Spending to Run the Business, IT Spending to Grow the
Business and IT Spending to Transform the Business...............................................................41
IT Spending Distribution: Hardware, Software, Personnel, Outsourcing 2010.......................47
Distribution of IT Cost, by Technology Domain, 2006-2010......................................................49
IT Portfolio Trends: Staffing.............................................................................................................52
IT FTEs as a Percent of Employees...........................................................................................52
Distribution of IT FTEs: Insourced vs. Contractor 2010.........................................................54
Distribution of IT Staff: By Technology Domain..........................................................................56
Conclusions....................................................................................................................................68
Related Research...........................................................................................................................68
Recommended Reading.......................................................................................................................69

List of Tables
Table 1. Key Industry Measures: Vertical Industry Document Index, ITKMD............................................6
Table 2. Revenue and Enterprise Employees, by Industry (Averages)....................................................13
Table 3. Run-, Grow- and Transform-the-Business IT Spending, by Industry, 2010..............................44

List of Figures

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Figure 1. Demographics: Key Industry Measures, Distribution by Industry, 2010...................................11

Figure 2. Demographics: Key Industry Measures, Distribution by Region, 2010....................................12
Figure 3. IT Spending Percent Change, by Industry, 2009-2010...........................................................17
Figure 4. IT Spending Percent Change, by Region, 2009-2010............................................................18
Figure 5. IT Spending as a Percent of Revenue, by Industry, 2010.......................................................19
Figure 6. IT Spending as a Percent of Revenue, by Region, 2010.........................................................20
Figure 7. Agility: Revenue Percent Change vs. IT Spending Percent Change, 2009-2010.....................21
Figure 8. IT Spending as a Percent of Operating Expense, by Industry, 2010.......................................23
Figure 9. IT Spending as a Percent of Operating Expense, by Region, 2010.........................................24
Figure 10. Agility: Operating Expense Percent Change vs. IT Spending Percent Change, 2009-2010...25
Figure 11. IT Spending per Employee, by Industry, 2010......................................................................27
Figure 12. IT Spending per Employee, by Region, 2010.......................................................................28
Figure 13. IT Spending as a Percent of Revenue vs. Operating Profit, 2010..........................................29
Figure 14. IT Spending Percent Change, by Industry, 2010-2011.........................................................30
Figure 15. IT Spending Percent Change, by Region, 2010-2011..........................................................31
Figure 16. Spending Behaviors: Regional Distribution of Spending Changes by Type, 2010-2011........32
Figure 17. Spending Behaviors: Regional Average Spending Changes, by Type, 2010-2011...............33
Figure 18. IT Spending as a Percent of Revenue, by Industry, 2011 (Projection)...................................34
Figure 19. IT Spending as a Percent of Revenue, by Region, 2011 (Projection).....................................35
Figure 20. IT Spending as a Percent of Operating Expense, by Industry, 2011 (Projection)...................36
Figure 21. IT Spending as a Percent of Operating Expense, by Region, 2011 (Projection).....................37
Figure 22. IT Spending per Employee, by Industry, 2011 (Projection)....................................................38
Figure 23. IT Spending per Employee, by Region, 2011 (Projection).....................................................39
Figure 24. IT Operational vs. Capital Spending, 2006-2010..................................................................40
Figure 25. IT Operational vs. Capital Spending, by Region, 2010..........................................................41
Figure 26. IT Spending to Run, Grow and Transform the Business, 2006-2011....................................42
Figure 27. IT Spending to Run, Grow and Transform the Business, by Region, 2010...........................45
Figure 28. Business Value Category Decision Tree...............................................................................46
Figure 29. Distribution of IT Spending on Hardware, Software, Personnel and Outsourcing, 2010........48
Figure 30. Distribution of IT Spending on Hardware, Software, Personnel and Outsourcing, by Region,
2010....................................................................................................................................................49
Figure 31. Distribution of IT Cost by Technology Domain, 2006-2010...................................................50
Figure 32. Distribution of IT Cost by Technology Domain, by Region, 2010..........................................51
Figure 33. IT FTEs as a Percent of Employees, by Industry, 2010.........................................................53
Figure 34. IT FTEs as a Percent of Employees, by Region, 2010..........................................................54
Figure 35. Distribution of IT FTEs: Insourced vs. Contractor, by Industry, 2010.....................................55
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