March 6, 2014

Newsletter: Large IT cost-saving potential for Benelux companies

Average-performing companies in the Benelux spend four times more on IT than their more successful peers. The largest cost difference is found in the trade sector while the lowest is found in the manufacturing sector. This shows Waagstein Research’s recently published report Benelux Corporate IT Costs 2014-2015 – Large companies’ budgets & forecasts.

Trade and Services companies expect IT spending increases in 2015

While manufacturing companies in the Benelux are expected to spend less on IT in relation to internal IT users, PC, employee and turnover in 2015 compared to 2014, trade and services companies expect to spend more, with trade companies expected to increase their spending the most.

Outsourcing is gaining traction among Benelux companies

Benelux companies in all three sectors expect fairly large increases in outsourcing spending in 2015. The largest increase is expected in the manufacturing sector; likely as a response to the downward pressure on IT costs in that sector.

Manufacturing companies most reliant on internal IT staff

While almost a third (31%) of Benelux manufacturing companies’ IT spending is allocated to internal IT staff, trade and services companies only spend 24 and 23 percent respectively.

Development spending is increasing

Services companies spend the most on IT development as a share of total IT costs and are also expected to experience the largest spending increase in 2015. Trade companies which currently spend the least are also expected to increase their development spending while manufacturing companies instead are expected to spend somewhat less on development in 2015.

Trade companies spend most on ERP systems

Overall, ERP systems is the IT function that Benelux companies spend the most on while IT infrastructure is the second largest spending area. Companies in the Benelux trade sector spend almost two fifths of their total IT costs on ERP systems, which is significantly higher than in the services and manufacturing sector.