Six Building Blocks for Effective Benchmarking
There are six essential building blocks that need to be applied to elicit meaningful and insightful recommendations.
ISG benchmarking services help you track and meet your cost, performance and quality objectives. Our data is unmatched – it comes from detailed engagements with client organizations and providers rather than just from market research.
We have +15 years' experience helping enterprise clients compare defined services to the market.
We have the data and know-how to help you benchmark cost, quality and productivity across all functional areas of business and IT, including:
Find out the right benchmarking services for your needs and strategic objectives.
Staffing rates, contract pricing and competitiveness
Total cost of ownership (TCO) and industry benchmarks
SLAs, user experience and provider relationships
Price, terms and conditions
Are total staffing levels and staffing utilization right for each functional area?
How do our level of assets compare? Are we providing the right service levels to users?
Are we spending the right amount of money in total, and by major functional area?
Where are the variances from leading practices?
Why and where are there gaps? How do we drive sustainable improvement?
What are the high impact, high ROI changes we can make in the immediate term?
Are there services currently provided in-house that should be outsourced, or vice versa?
What complexity or constraints could be alleviated through automation or simplification?
Outsourcing contracts become uncompetitive over time, but it’s difficult to know when it will happen – or by how much.
Whether you want to benchmark your outsourcing contracts’ price, compare your internal service delivery cost to the market or both, ISG gives you at-a-glance visibility into price competitiveness via a single-pane dashboard, plus access to deep dives into real-time IT industry market price intelligence.
In addition to the above project based price benchmarking services, you can also monitor the price competitiveness of your contracts in real time using using the ISG Probenchmark® price monitoring service.
Acting on timely, accurate and actionable price data allows enterprises to more quickly respond to changes in market prices and make more strategic decisions regarding their IT services.
To get a complete picture of your landscape, you need to understand your service quality and personnel productivity, potential efficiencies and gaps, user satisfaction, and how all these elements relate to cost and compare to the market.
We offer a holistic benchmarking solution that gives real-time, online dashboard visibility into the three key components of performance:
By comparing your spend, staffing allocations and performance across the enterprise, we help you identify opportunities to improve your financial and operational performance.
TCO Benchmark: Compares your total cost of ownership against industry standards of cost, quality and productivity for a variety of IT products and services.
Industry Benchmark: Compares costs against industry metrics, such as IT spend as a percent of revenue.
Get real-time access to cost benchmarking data with ISG Inform™.
Build a defense against the risks of fixed-price long-term contracts. Compare your contract price, terms and conditions to the market and know when your contract falls out of favor.
The terms and conditions of your contracts set guidelines of acceptable behavior, but they are evolving entities – and you need to manage that evolution. A commitment to benchmarking your contracts is a commitment to progress and improvement.
An ISG contract terms and conditions assessment can:
KPIs and SLAs are essential for tracking performance in terms of achieving strategic goals and making decisions. In the best of cases, KPIs can serve as an early warning system to let you know when you are heading off course and where
action might be needed.
An ISG performance benchmark compares your performance against industry peers and leaders and gives you a cost-effective approach to share, compare, improve, and transform internal functions and processes.
assesses service levels against the market, including both performance levels and structure
evaluates the health of a relationship between you and your service providers
User Experience Benchmark
measures the impact of technology on users, including customer satisfaction
ISG uses Partnership Experience Assessments to find commonalities and challenges in two new client/provider relationships, enabling the partners to shore up buy-in, focus on areas that needed the most attention, and speed up the move to more strategic, innovative partnerships.Learn more
ISG performed an internet of things (IoT) study for an industrial manufacturing company to identify potential differentiating solutions for the company’s digital transformation. ISG positioned the company’s custom blockchain application as an IoT Gateway1, and we aligned the application’s product roadmap to 42% of the IoT ideation use cases.Learn more
ISG designed and configured a blockchain software application for an industrial manufacturing company to increase its supply chain transparency and streamline multi-stakeholder communications. The proof-of-concept aligned with a business strategy and industry analysis to roadmap future versions of the blockchain application.Learn more
ISG is a leader in proprietary research, advisory consulting and executive event services focused on market trends and disruptive technologies.
Get the insight and guidance you need to accelerate growth and create more value.Learn More
Industries and businesses are recording a rise in the number of digital products with the development of tools, techniques and capabilities that collaborate and connect in various ways. Cloud-based, no-code, low-code, scalable, resilient and secure platforms are in high demand because they efficiently deliver digital engineering services, including design, experience, operations and applications, across industries. Platform engineering toolchains enable self-service capabilities and help address end-user requirements.
Microsoft plays a pivotal role in many businesses’ digital transformation strategies and is one of the world’s leading enterprise technology vendors. Its products form the backbone of digital transformation for companies across the U.S. As a U.S.-based company, Microsoft generates half its revenues from its home country and has a strong historical footing in the region, especially among larger firms. The tech titan subdivides its offerings into three main pillars: Microsoft 365, which includes Office 365 and Windows; Dynamics 365, a business application suite; and Azure, a hyperscale cloud platform that operates globally. Power Platform, a more recent addition to the Microsoft portfolio, is a low-code development platform that enables citizen developers to build apps and workflows, thus extending the capabilities of existing portfolios.
The mainframe service market continues to grow as per ISG’s expectations for both conventional mainframe outsourcing and consulting services as enterprises migrate their mainframe applications to the cloud. With clients under pressure to reduce their mainframe costs, several service providers are addressing the increasing demand to free business data that resides in mainframe systems.
Global enterprises are accepting the hybrid working model, wherein their workforce is allowed to work from a location of their choice and asked to report to office in case of absolute need. Depending on an employee’s work profile, corporate culture and vision requirements, organizations worldwide are framing policies to distribute their workforce into remote and in-office working modes.
In 2022, enterprises in the U.S. invested significantly in analytics solutions to empower their business leaders and employees to make decisions using a data-driven approach. The market witnessed a notable change in the mindset of enterprise executives, reflected in the changing pattern of their investments that shifted from capturing and storing data to actively deriving value out of data. A burgeoning competitive environment and new-age startups with disruptive business models necessitated investments in analytics solutions that drive real-time insights and enable decision-making that is essentially data-driven. While the changing market dynamics demand a variety of analytics solutions and platforms, ISG’s analysis reveals that most of the U.S. enterprises are still in their early stages of analytics and data maturity, which warrants the adoption of tools and platforms that help in delivering visualized insights, data-led storytelling and eventually decision-making.