Do I get value for money?

quality-price-ratioBenchmarking is the way to find out.

Benchmarking is the process of comparing a certain performance to the mean performance of the peer group. The subject of benchmarking is:

  1. The performance of an external supplier as assumed in a proposal estimation, or
  2. Determining the performance of your own organization.

Benchmarking therefore is essential to keep control over your IT budget and the value you get for your money.
Benchmarking essentially answers the following kind of important questions:

  • What exactly is the market average performance in my business domain?
  • Do I get value for money from my suppliers?
  • Is this proposal competitive, a good opportunity (cheap) or an expensive deal?
  • Is the proposal realistic, can the supplier live up to it or is a failure likely in time, cost, and or quality at delivery?
  • Is my own organization competitive when compared with my peers?
  • Is there room for improvement (when you are expensive as compared with your peers)?

For benchmarking it is necessary that performance is measured in ISO standardized metrics, like hours/fp. The reason for this is being able to do objective statements and comparisons.

Next, for benchmarking some source of benchmark data is needed.
Finally, usually some benchmark software tool will be used to increase the effectivity and reliability of the calculation.


For any questions about benchmarking, please contact the Benchmarking committee or post it on the forum.