Sunday, March 20, 2011

How Does Your App Dev/Support IT Budget Compare to Industry Averages?

The Gartner Group has done a great job with compiling data related to industry averages for application development and support. Those industry averages are also sliced and diced by vertical.

Industry averages do not indicate best practices or imply the sweet spot for spending for application development resources; they are merely averages for how your peers are balancing resources.

Anyway, here are some interesting stats compiled by the Gartner Group in 2010. There are lots more to go along with these and you can get them here. Do you know how your organization stacks up against your peers and the IT teams in general?

  • IT Spend Distribution
    • 34% of IT spend goes to application development and support resources. 83% of that spend is towards personnel, of which 60% are programmers.
    • Of the IT budget for application development and support, 52% goes towards application development and 48% goes towards application support.
  • Personnel and Work Distribution
    • 37% of IT staff is dedicated to application development and support
    • 53% of the work distributed to application development support goes to development projects with the balance towards support.
    • Work distribution aligned to the SDLC breaks out to 27% requirements/design, 26% development, 32% testing, and the balance being PM and other admin functions.
  • Development Methodology
    • Surprisingly, only 14% of organizations consider themselves to be Agile shops. However, there are an additional 31% that use some form of iterative development.
    • Believe it or not, Waterfall is still king with 55% of organization using that methodology.

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