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
Featured Insights
Featured Event
SourceIT
Reimagining the role of sourcing may just be the most important thing you can do to prepare for your organization’s digital future.
Watch the ReplayISG Research
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
Research
A Shift to Cyber Resiliency from Cyber Security Technology
The cybersecurity market in the U.S., witnessed exceptional growth in spending against the backdrop of a multitude of reasons threatening to impact businesses and economy. The U.S. market is reflective of global trends; U.S. is recognized for its high maturity in IT and security adoption and as the hub for centralized business decision making for several enterprises. The post-COVID-19 phase witnessed an unprecedent acceleration in digital transformation investments, uptake of remote and hybrid work models, incidents of sophisticated attacks and data leaks across enterprises of all sizes, and the (ongoing) Ukraine-Russia conflict. These reasons, combined with the surge in insider threats, lack of cybersecurity awareness with misguided perceptions and false sense of complete protection, have created further complexities, necessitating innovative, real-time and advanced security capabilities.
Research
A Study on Banking Platform Providers
The banking platform industry is poised for an overhaul. Emerging technologies such as AI, machine learning, blockchain and others have revolutionized customer experience (CX) and brought banks closer to their customers. In a world severely impacted by the pandemic, contactless delivery, remote working and flattening hierarchies are becoming the new realities; banks have gearing up to deal with the challenge by leveraging technology platforms.
Research
Building True Omnichannel Retail Holds Key to Success
While the world is getting back to business-as-usual, there have been some permanent changes in the retail industry due to changed consumer behavior and expectations.
The global pandemic accelerated e-commerce adoption and saw retailers adapt, in a matter of days, to new sales channels such as buy online pickup in store (BOPIS); curbside pickup; lockers; social commerce; voice commerce; and “buy now, pay later.”
It is estimated that, worldwide, e-commerce sales grew by more than 40 percent in 2021, compared with 2019. By the end of 2023, online retail sales are expected to exceed $6 trillion and contribute to about 21 percent of total worldwide retail sales.
Research
Hybrid Cloud Has Become an Integral Part of Every Digital Journey
The rise in digital transformations initiatives among enterprises has jumped significantly in the last year, with private/ hybrid cloud solutions and services becoming central to these transformation efforts. Enterprises are also under constant pressure to reduce operational costs, including the cost associated with IT operations. In-house data centers are a huge expense for an enterprise, and a substantial investment is required to deploy and maintain a modern, energy-efficient data center. This, in turn, is driving the outsourcing engagements for data center managed services, which is a better alternative and positively impacting the growth of the global data center infrastructure outsourcing market.
Research
Enterprises Are Rapidly Adopting Advanced Infrastructure
Over the last few years, the growth of public/hybrid cloud adoption has increased significantly. Enterprises have been facing the need to adopt new technological advances due to cost pressure from their finance teams. Hence, engineering teams of enterprises have to find the best technological solution that can help in reducing technical debt and associated costs.
Meet our team
Contact the ISG Benchmarking Team
