As part of the Global 5000 database, we have built estimates for the amount of IT spending on the part of each company. It is a function of the revenue of each company and that percentage of revenue varies by industry. Some of the more data intensive industries will spend more while some of the more labor intensive and production oriented businesses will spend less.
With the estimates for each company, we are able to look at some summary data by country and by industry to provide guidance on where some of the richer opportunities and larger budgets are. As a reminder – these are the largest companies in the world and their averages will be different than the smaller companies in any market.
One calculation we like to make is the amount of IT spend per employee. This helps to give a sense of productivity oriented industries and those that are information intensive. Here are the top 5 industries for IT spend per employee among the Global 5000 companies.
- Financial Services = $32,100
- Real Estate = $31,400
- Telecommunications = $24,800
- Oil & Gas = $22,800
- Health Care = $17,000
We also looked at all the countries covered as part of the Global 5000 and examined the average total IT spend for companies in those countries. Again – these are the largest of the large. Here are the top 10 countries with the largest average IT spend for Global 5000 organizations.
- France led with $902 million average IT spend per Global 5000 company
- South Korea
- New Zealand
The real take – away here is that by focusing on your prime target markets – be it IT heavy organizations or those with big marketing budgets, great growth, bug education & training budgets or specific industries, the metrics and data that drive objectives can really help identify key priorities and opportunities.
For more details about the Global 5000 database of companies — go to this page.