Menu
The state of the Australian CIO 2010

The state of the Australian CIO 2010

The opportunities and challenges that drive today's IT leaders

<b>Reporting trends 2006-2010</b>
<hr>
<hr>
More CIOs call the CFO 'boss' 18 months after the GFC.
<hr>
<hr>
[[xref:http://demo.idg.com.au/images/cio/SCIO_reporting.gif|See larger image|Reporting trends]]

<br>
<br>
<b>[[artnid:359291|Back to main article|State of the CIO Australia]]</b>

<b>Reporting trends 2006-2010</b>
<hr>
<hr>
More CIOs call the CFO 'boss' 18 months after the GFC.
<hr>
<hr>
[[xref:http://demo.idg.com.au/images/cio/SCIO_reporting.gif|See larger image|Reporting trends]]

<br>
<br>
<b>[[artnid:359291|Back to main article|State of the CIO Australia]]</b>

IT’s share of the pie

The average IT budget was 3.9 per cent of revenue, however there are wide variations with smaller organisations generally committing a larger percentage to IT. Government organisations are hovering at just over 5 per cent.

Leonas says IT budget percentage figures need to be viewed “with a huge grain of salt”.

“How confident are we in capturing IT costs in full? For example, many organisations don’t include telephony in IT budgets and data centres may not be fully included,” Leonas says.

“There are organisations that are technology driven and we compare them with other non-technology industries. Organisations can interpret the figures very differently and even Gartner has said to me it is very difficult.”

If the CIO is not at the executive table, the ability to influence early becomes difficult

That said, Leonas’ experience tells him an acceptable range for an IT budget is anywhere from 3 to 6 per cent of revenue.

“The 3.9 per cent number doesn’t look outrageous, but it also must take into account hardware replacement cycles. I’m not sure we’ve found a way to fully interpret it yet.”

Leonas expects no significant change in government IT spending this year, but predicts more in 2011 and 2012.

Regarding the IT spend average, Clark says, “I’ve seen that 3.9 per cent number before and ours is definitely below that”. “A lot of companies are still being cautious and investing where needed,” he says.

IT staff to user ratio

The average IT staff to user ratio is 1 to 49 — varying from 1:55 for large organisations to 1:19 for small. Leonas again cautions that this is another aspect that is very difficult to measure.

“Do we even count those working in outsourced helpdesks? I have about 3000 staff and manage a team of about 150 people [1:20 ratio] and 165 during peak times.

“About one to 50 is average for large enterprise,” Leonas says. “But if you are working on a large project it can massively distort these figures.”

Brookfield’s Clark says a ratio of IT staff to users of 1:49 is pretty good for a “lights-on operation”.

“I don’t see how it would include innovation as well and looks like a lights-on number only,” he says.

IT departments often become too focused on the backend and forget user productivity, according to Clark.

“I’ve set people aside to find out how technology can best be used by the end users,” he says. “IT departments get a glass wall around them. Knowing what users are doing also drives operational efficiency.”

Clark says rapid organisational growth builds internal pressure so there should never be a loss on operational focus and “there is no point in talking about innovation if you can’t get your backyard in order”.

Next: The rise of selective outsourcing

Download the 28 page State of the CIO research report

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags outsourcinggovernancecareersCFOThe State of the Australian CIOstaffbudgetsIT LeadershipVladas LeonasChris Clarkportfolio managementwages

More about GartnerMultiplexTelstra Corporation

Show Comments
[]