The breakdown and ratio of IT hardware, security, ERP, CRM, and BI costs compared to a company’s revenue can vary significantly depending on the industry, company size, and specific business needs. However, here are some general benchmarks:
- IT Hardware Costs: Typically, IT hardware costs account for about 2-4% of a company’s revenue
- Security Costs: On average, companies allocate around 10-13% of their IT budget to security. This translates to roughly 0.2-0.5% of total revenue, depending on the overall IT budget.
- ERP Costs: For mid-sized companies, ERP costs are generally around 3-5% of annual revenue.
- CRM Costs: CRM costs can vary, but they often represent a significant investment. The average return on investment for CRM spending is $8.71 for every dollar spent, indicating that companies see substantial value from these systems.
- BI Costs: Business Intelligence (BI) costs are often included within the broader IT budget. While specific ratios for BI alone are less commonly reported, the overall IT budget, which includes BI, is typically around 2-4% of revenue.
These percentages can serve as a rough guide, but actual spending will depend on the specific needs and strategic priorities of each company. If you have any specific industry or company you would like to have a CRM, ERP and Bi estimate for, you can contact us for specifics.