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New Civil Engineer
Construction industry IT benchmarking report to be published 4 May, 2010 | By NCE Editorial A new IT benchmarking report designed specifically for the construction sector has been published by The Knowledge Practice, in association with Construct IT (Salford University) and the National Computing Centre (NCC). The survey report provides a comprehensive picture of IT expenditure and future plans in the UK’s Top 200 construction organisations covering building and civil engineering contractors, professional services/design firms, house builders and property developers. The aim of the report is to provide construction industry IT Managers, CEOs and Finance Directors with: - A clear representation of the impact that the latest financial and economic crisis has had on IT investment in the construction industry
- A detailed comparison of current and planned IT expenditure in firms of similar type and size in the UK construction sector focusing on three principal types of construction business
- A set of key trends for enterprise spend on areas such as staff, hardware infrastructure, software, telephony and data networking
- Access to industry-wide, enterprise-level IT benchmarks and IT investment ratios.
Key findings include: - The total value of IT expenditure in the UK construction sector now tops £1 BN annually which represents 1.2% of total construction output value
- Average IT expenditure is now 0.74% of turnover for contractors, 0.80% for house builders and developers and 3.60% (of fee income) for professional services/ design firms, and shows that IT expenditure in the construction sector has grown by over 60% when compared with results from the last similar benchmark study was undertaken in 1992.
- Median IT expenditure per head in the construction industry is now £2,200 which is approaching levels in the manufacturing sector (£2,790). Larger contractors (>£1,000M turnover) with median expenditure of £3,258 per head are now equal to the all-sector median level of £3,227 per user recorded in NCC’s pan-industry 2009 survey.
- 25% of all IT expenditure in the construction industry is on telecommunications covering data networking, office telephony and mobile phones
- The general outlook for IT budgets in construction looks fairly lean with an overall reduction across all firms forecast of 4% compared with 2009 and with over 50% of companies predicting IT budget reductions of 10% or more
- Capital expenditure levels were pared back in 2008/09 by an average of one third. Companies are waiting to see how the economy improves before they are willing to reinstate funding for major software upgrade and infrastructure renewal projects. 90% of firms say are planning not to increase capital budgets until the outlook improves
- Software is the only category of IT expenditure where firms have predicted that there will be an overall net increase. Many firms are seeking to take advantage of lower price levels of commoditised IT infrastructure services and to reinvest savings on new-breed of software applications.
The report is due to be published on 10th May and copies may be obtained by telephoning The Knowledge Practice (www.tkp.co.uk) on 020 7084 5735) or by emailing Benedetta Crisafulli at benedettac@tkp.co.uk. Copies of the report may also be obtained from Construct IT and NCC. The report is priced at £45 (colour printed version) or £90 in electronic format licensed for full corporate distribution. Special member rates apply for organisations that are members of either Construct IT or NCC.
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