Do I get value for money?
Benchmarking is the way to find out. It is a process of comparing your performance to the mean performance of your peer group.
Benchmarking is essential to keep control over your IT budget and the value that you get for your money. It provides answers to the following questions:
- What is the market average performance in my business domain?
- Is my own organization competitive compared to my peers?
- Is there room for improvement?
- Do I get value for money from my suppliers?
- Is the estimation in a proposal competitive?
- Is the proposal realistic?
For benchmarking it is necessary that performance is measured in ISO standardized metrics like hours per function point. Then you are able to make objective statements and to do comparisons. It is important to have a reliable source of benchmark data and to use benchmark software to increase the effectiveness and reliability of the calculation.
Would you like to obtain more information about benchmarking? More detailed information can be found in the whitepaper Nesma on Benchmarking. Get your free download here.