Benchmarking – Good, Bad or Plain Indifferent!

Benchmarking, particularly comparative IT benchmarking, have been used by many CIOs to justify their spending on information technology. However, opinions are divided on the results. Does scoring low in a particular benchmark puts a business at disadvantage? Or, for that matter, scoring high leads to higher unproductive spending? Questions like these have always troubled CIOs, CFOs and CEOs alike.

Benchmarking is old stuff, why to talk now?

In the current scenario where CIOs are increasingly reporting to CFO or COO rather than CEO, it becomes imperative that IT communicates its value add to business clearer than ever done before. Inherently, CFOs/COOs like clarity on investments made, running cost, and value added by an IT system to an organization. It is logical that even CIOs have similar agenda in mind. However, CIOs tend to run into problems while communicating this to CFOs or other business leaders primarily due to less business and higher technical orientation. This problem is compounded when leading outsourcing companies persuade business leaders to ask questions on value add and effectiveness of services provided by internal IT organization. Continue reading