Top tech firms balance value and cost, study shows
FLORIDA, UNITED STATES — Leading technology companies deliver far greater value while spending less than peers, reveals new research from The Hackett Group.
Over the past decade, typical companies saw 23% IT cost increases versus only 16% for top-performing technology companies labeled “Digital World Class.” This saves $37 million annually for a typical $10 billion firm.
Digital World Class firms modernize through automation, analytics, cloud, and collaboration tools. This enables 45% lower IT outsourcing spend and further trims labor costs. Their strategic focus allows rapid adaptation.
By harnessing data more effectively, they make better decisions and prioritize critical areas like cost management without sacrificing long-term strategy. Key performance metrics also indicate that such businesses have 2.9 times more projects that meet ROI expectations, 47% more recognition as valuable business partners, and 68% higher technology budget allocation towards emerging technologies.
The research also showed a clear link between Digital World Class status and better performance, including an 80% higher net margin and a 24% greater EBITDA margin.
The Hackett Group Global IT Executive Advisory Program Practice Leader Tammy Pinter emphasized the clarity of vision Digital World Class tech organizations maintain, stating they are “laser-focused on driving strategic advantage.”
The Hackett Group measures Digital World Class performance by analyzing data from global companies, including recent benchmarks and studies.
The Hackett Group, a global strategic business advisory and operations improvement consulting firm founded in 1997, is a leader in best practice advisory, benchmarking, and transformation consulting services including strategy and operations, working capital management, and globalization advice. It has 8,800 clients in nearly 60 countries, with over $207 million in assets as of 2021.
