How Company Size Relates to IT Spending


This week we’ve come to the conclusion that company size is one of the major factors of determining how much money the company spends on IT. While I was doing research on how company size correlates to IT spending, I’ve came across interesting findings. Here is a list of key findings that I was intrigued by:

  1. Large companies often times spend less money on IT than small and midsized companies. The average spending of small companies is 6.9% of revenue on IT, midsize companies spend 4.1%, and large companies spend 3.2%.
  2. Midsized companies spend $13,100 per employee on IT, while large companies spend $11,580 per employee.
  3. The majority of the top performers of all company sizes utilize a more conservative approach to IT by avoiding projects that are large and by demanding quick investment payback.

What are your thoughts on these finding? Why do you think smaller companies spend more on IT than bigger companies? Do you believe these findings are accurate and why?


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