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
Featured Event
Digital Innovation Tour
Enjoy a rare, exclusive visit with the most important players in the digital ecosystem in India.
Register nowISG 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
Managed delivery of increasingly complex enterprise network services is a critical success factor
The managed network services (MNS) industry, whereby entire or parts of enterprise networks are effectively outsourced to expert suppliers, has witnessed a significant evolution since its inception in the early 2000s. Initially focused on basic connectivity and maintenance tasks, the industry has expanded to include a comprehensive range of services that address the complexities of modern ICT infrastructures. Today, MNS encompass underlay network management, network security, cloud connectivity, software-defined networking and more. The demand for MNS is driven by the need for robust security measures such as secure access service edge (SASE) and regulatory compliance amid an increasingly complex threat landscape.
Research
What Open Platforms Mean for Contact Centers
Software providers have identified “openness” as a key consideration for contact center buyers. Since there is no generally accepted rule about what makes a system open, it makes sense for us to examine what components contribute to that quality, and why it should be thought of as a good thing.
Research
Beyond Buzzwords: How HR Tech Can Drive DEIB Success
For many years, HR teams encountered an endless stream of buzzwords often intended to garner excitement about new technological developments or further evolution of the HR profession. Unfortunately, this often leads us down unproductive paths in the attempt to be part of the conversation. Often, executives and senior leaders will express a requirement to include the latest buzzwords in any software RFPs as a minimum for participation. HR teams find themselves in a position of compliance but struggle to be fully informed and educated on the what, why and how associated with the trendy topics.
Research
Gaining Financial Management Effectiveness in Midsize Enterprises
Doing more with less is the defining characteristic of finance and accounting departments in midsize enterprises, which ISG research defines as organizations with between 100 and 999 workers. One frustrating truth confronting executives in these organizations is that, once their company stops being a small business, it has many of the same challenges that large enterprises face but with fewer resources to deal with them. Over the past two decades, advances in information technology have had the greatest incremental impact on midsize enterprises, approaching the ability of large organizations to harness practical, affordable and reliable technology to gain productivity and improve performance, especially in the office of finance. The introduction of artificial intelligence and generative AI will close the gap further.
Research
Unlocking Success with Enterprise GenAI Tools
Generative AI (GenAI) software can transform various aspects of enterprise operations, which makes it a critical component of modern business strategies. GenAI tools can automate repetitive tasks such as data entry, report generation and customer interactions. GenAI can improve overall operational efficiency, resulting in time and cost savings for the organization. Another benefit from GenAI software is the ability to analyze vast amounts of data and extract actionable insights, enhancing decision-making processes. This empowers the workforce to make informed decisions quicker. Utilizing GenAI in customer service and support can lead to more personalized and responsive interactions. By analyzing customer behavior and preferences, companies can tailor offerings and communications, resulting in enhanced customer satisfaction and loyalty.
Contact the ISG Benchmarking Team
