Less really is more
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According to a recent survey by Alinean, a return-on-investment (ROI) consulting company, the more successful a company is, the less it probably spends on IT in percentage of revenue terms.
Spending more on technology helps make your business more efficient, more competitive and more competitive, right? Wrong.
According to a recent survey by Alinean, a return-on-investment (ROI) consulting company, the more successful a company is, the less it probably spends on IT in percentage of revenue terms.
Alinean surveyed nearly 9,000 public companies across the US and Europe to work out their average technology spend. European companies, it said, spend just over 7% of their revenues on IT on average, while US companies spend less than 4%. But, according to Alinean's ROI calculations, US companies are delivering greater profitability gains and cost savings as a result of those investments.
What is more, the best performing companies across both Europe and the US, measured in terms of overall business performance, spend considerably less as a proportion of revenue on IT than their less-able rivals.
Europe's best performers spend just over 2% of revenue on IT, while high-performing US companies spend less than 1%.
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