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.
Benchmarking Services
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
ISG 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
Data Lakehouses Enable Data as a Product
I have previously described how data as a product was initially closely aligned with data mesh, a cultural and organizational approach to distributed data processing. As a result of data mesh’s association with distributed data, many assumed that the concept was diametrically opposed to the data lake, which offered a platform for combining large volumes of data from multiple data sources. That assumption was always misguided: There was never any reason why data lakes could not be used as a data persistence and processing platform within a data mesh environment. In recent years, data as a product has gained momentum outside the context of data mesh, while data lakes have evolved into data lakehouses. It has become increasingly clear that data lakehouses and data as a product are well matched, as the data intelligence cataloging capabilities of a lakehouse environment can serve as the foundation to enable the development, sharing and management of data as a product.
Research
Conversational Automation’s Impact on AI and CX
Conversational automation is one of those software segments that means something different depending on who you are or your role in an organization. According to my colleague Jeff Orr, the core of the idea is that conversational automation tools benefit from artificial intelligence (AI), allowing software agents, chatbots and virtual assistants to automate customer interactions and internal processes. This broad definition hits the mark, I think, because it identifies the core functions without putting too tight a straitjacket on the technology itself, which is developing very quickly. The software provider landscape is analyzed in the ISG Buyers Guide for Conversational Automation.
Research
Silos in HR, Sales and Finance for Total Rewards Strategy
For decades, organizations have treated sales incentive compensation as a separate entity, isolated from the broader total rewards strategy. This isolation stems from historical operations, where sales compensation is designed and managed within Sales, with periodic budget oversight from Finance, while HR focuses on base pay, benefits and equity. Unfortunately, this siloed approach, further reinforced by outdated technology and entrenched business practices, limits companies from fully leveraging their total rewards strategy. As a result, I predict that by 2028, many companies will find their compensation processes ineffective, prompting a critical assessment of their alignment with desired priorities and values.
Research
Software Increases Productivity in the Record-to-Report Cycle
The six costliest words in managing a finance department are, “We’ve always done it this way.” The record-to-report (R2R) cycle describes the process of finalizing and summarizing the financial activities of a business for a specific accounting period—typically a month, quarter or fiscal year. It is important to note that R2R exclusively covers the activities between recording (keeping the books) and reporting (publishing financial statements and management accounts). It involves completing various tasks to ensure that all revenue, expense and other financial transactions are properly recorded, accounts are balanced and accurate financial statements can be prepared.
Research
What’s Next for AI and Sales?
Ten years have passed since artificial intelligence (AI) first appeared in sales technology, and the results are mixed. Early tools applied rudimentary machine learning (ML) models to customer relationship management (CRM) exports, assigning win probability scores or advising on the “ideal” time to call. The mathematics was sound, the demos impressive, yet adoption faltered because little thought was given as to how sellers should use this information.
Meet our team
Contact the ISG Benchmarking Team
