One of the simple questions that business management has to ask when considering new spending is “will this help me make money or save money?” If the answer is not clear to either of those choices, it is hard to see that investment happening. It does not matter if this pertains to IT spending, a new facility or any other kind of major outlay. There has been a great deal of research conducted in past years showing that the investment in technology does, in fact, lead to an increase in productivity in many cases.
A convenient way to look at this is to simply calculate the revenue per employee figures for a company and compare them to your peers. We did this recently with The Global 5000 companies and took it a step further.
First we looked at companies in the Global 5000 list that have shown an increase in their revenue per employee ratios over the past two years. We selected the top 2,000 based on the largest percent increases in revenue per employee figures. Next, from this top 2000, we looked their corporate IT spending and ranked them from largest to smallest and selected the top 1,000 IT spenders out of the selection.
Therefore, the group of 1,000 we have examined are those growing revenue per employee the fastest and spend the most on IT. A reasonable assumption would be that will continue to spend and strive for continuous improvements — making some great potential targets for those that can show their offerings help save money.
Our list of the best 1,000 for this selection are in these industry groups:
- Financial Services
- Large Industrials
- Oil & Gas
- Technology companies
- Basic Materials
- Business Services
And the leading countries for these key targets are:
In our next post, we will flip this analysis and look at those that are not growing revenue per employee and do not spend a lot on IT — those may be an opportunity in waiting or places to avoid spending a lot of time on.
You can find more information about The Global 5000 database by clicking here