Six Building Blocks for Effective Benchmarking
There are six essential building blocks that need to be applied to elicit meaningful and insightful recommendations.
Advisory
You can’t manage what you don’t measure.
ISG Benchmarking
You can’t manage what you don’t measure.
The Industry’s Deepest Benchmark Database and Strongest Methodology
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:
- IT Infrastructure Services
- Application Services
- Software/Hardware
- Telecom/Network
- Cloud (IaaS)
- Digital
- F&A, Procurement, & HR
Find out the right benchmarking services for your needs and strategic objectives.
Click on what you want to benchmark to learn more:
Price
Staffing rates, contract pricing and competitiveness
Cost
Total cost of ownership (TCO) and industry benchmarks
Performance
SLAs, user experience and provider relationships
Contract
Price, terms and conditions
ISG Benchmarks Address Your Questions
Staffing
Are total staffing levels and staffing utilization right for each functional area?
Service Delivery
How do our level of assets compare? Are we providing the right service levels to users?
Spend
Are we spending the right amount of money in total, and by major functional area?
Leading Practices
Where are the variances from leading practices?
Performance Gaps
Why and where are there gaps? How do we drive sustainable improvement?
Meaningful Savings
What are the high impact, high ROI changes we can make in the immediate term?
Service Source
Are there services currently provided in-house that should be outsourced, or vice versa?
Intelligent Simplification
What complexity or constraints could be alleviated through automation or simplification?
Price Benchmarking
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.
- Rate Card Assessments: Assesses labor rates found in time and material (T&M) agreements.
- Market Assessment: Assesses pricing found in outsourcing contracts, typically at the tower level.
- Contract Benchmark: Benchmarks pricing, performance and quality found in outsourcing contracts at a detailed level.
- Tripartite Contract Benchmark: Formal benchmark executed by both parties to a contract (client and provider), often as part of the benchmarking clause in master services agreement (MSA).
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.
Cost Benchmarking
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:
- Understanding where your costs and performance stand today
- Establishing goals to resolve opportunities
- Tracking progress on achieving optimization
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™.
Contract Benchmarking
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:
- Increase savings by reducing contract cycle times
- Decrease risk by helping you rely on audit trails and accurate benchmarking data
- Leverage baseline data and peer and industry performance comparisons to improve contract lifecycle management
- Establish goals for cost reduction, enter new markets and enhance supplier relationships
- Define new contracts with the latest trends in terms and conditions.
Performance Benchmarking
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.
SLA Benchmark
assesses service levels against the market, including both performance levels and structure
User Experience Benchmark
measures the impact of technology on users, including customer satisfaction
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Research
Product Engineering Is the Center of Engineering and R&D Services
With vehicles becoming more software oriented, from being hardware oriented, and digital thread use gaining traction in R&D, enterprises can benefit from using a single source of data. Thus, a product lifecycle management (PLM) solution should be clearly explained to software developers by mechanical and electrical engineers. Accordingly, stakeholders in the U.S. are exploring options for driving the value proposition through the convergence of PLM, service lifecycle management (SLM) and application lifecycle management (ALM) in smart manufacturing in North America.
Research
BPO, TPA and ITO Providers Are Supporting U.S. Insurers
The U.S. insurance industry, like other regions, continues to face challenges pertaining to losses resulting from pandemic-related claims, climate change risks, rising operation costs, claims inflation, and cyberattacks. These are compounded by energy scarcity, rapid inflation, geopolitical tensions, increased need for operational readiness for regulatory changes, and changing customer expectations. The world has entered a new era that has become structurally different over the past 30 years.
Research
Intelligent automation services define the digital roadmap
Global enterprises are building new digital platforms to implement automation solutions that can replicate human action and eliminate employee routine tasks to achieve higher outcomes across industry verticals. Automation creates a new paradigm of people, processes and technology collaboration that complements and enhances business outcomes.
Research
Various RPA solutions are converging into a platform
Intelligent automation is now a mainstream technology spanning across enterprise portfolios. The evolution of RPA platforms in the past decade has been astounding, and the technology is now a vital constituent for driving digital business transformation. Core RPA characteristics are being integrated into platforms for building advanced products and capabilities. These platforms converge proprietary capabilities, emerging technologies and third-party solutions to develop a unique value proposition. This continuously evolving category acts as a differentiator and is one of the significant developments in the software vendor market.
Research
Cloud transformations are becoming more business value driven
In today’s world, to enable key business initiatives, cloud adoption plays a central and leading role in ensuring enterprise continuity. Enterprises are dependent on IT’s ability to deliver technology and solutions that provide differentiation in the market. The public cloud service market continues to grow as observed in previous years. This is mainly due to the acceleration of digital business transformation programs undertaken by enterprises to grow their businesses and improve customer experience (CX). Cloud migration and application modernization represent the leading enterprise initiatives. Data and analytics come third on the priority list, with cloud governance interest increasing in enterprises.
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