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Day: September 28, 2012

The Flip Side of IT Spending and Productivity

In our last post we explored the companies in The Global 5000 that showed the biggest gains in revenue per employee AND spent the most on IT.  The idea is that this group will continue to spend and strive for continuous improvements — making some great potential targets for those IT suppliers that can show their offerings help save money.

Now, we turn the page and explore the other end of the spectrum. Again, taking companies in the Global 5000 data base we now look at the bottom 2000 companies in terms of revenue per employee change  That is — they are not on a positive track. From this group we then took the lowest 1000 firms in terms of IT spending.

We can look at this set of companies in one of two ways – either:

  • they are ripe opportunities who will need to invest in order to grow their revenue faster or get more productivity out of the existing workforce
  • OR – they are not going any further with technology spending and their growth is not going to be via increasing spending per employee.

We should run to the first group and run away from the second.  Here is the profile of these 1,000 companies where these industries have traditionally been a challenge for the IT suppliers.

The top countries are:

  • USA
  • UK
  • Japan
  • Canada
  • France
  • Spain

And the top industries:

  • Industrial Manufacturers
  • Retailers
  • Consumer Goods Manufacturers
  • Business Services
  • Construction

For more information about The Global 5000 database click here

 

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