IT Key Metrics 2021 Pharmaceuticals, Life Sciences and Medical Products Analysis Summary

IT Key Metrics 2021
Pharmaceuticals,
Life Sciences and
Medical Products
Analysis Summary
Executive Programs
January 2021
RESTRICTED DISTRIBUTION
0 © 2021 Gartner, Inc. and/or its affiliates.
Contents
1. IT Key Metrics Overview
2. Pharmaceuticals, Life Sciences and Medical Products Industry Definition
3. IT Investment Measures
4. Business Productivity Ratios
5. IT Resource Distributions
6. Applications Measures
7. Infrastructure Measures
8. Security Measures
9. Appendix – IT Key Metrics Data 2021: Published Documents and Metrics
Gartner IT Key Metrics Overview
Gartner IT Key Metrics Data (ITKMD) 2021 series analysis provides insight into IT Budget and IT Key Metrics Data comparison groups. This year’s sample is
representative of over $11 trillion in total revenue and more than $340 billion in total IT spend collectively from 4,981 CIOs and IT Leaders.
Key Findings
 Gartner provides both self-service research and advisory benchmark solutions as well as consulting-based benchmark enabled solutions.
 Gartner benchmark solutions deliver multiple views of IT spend to enable effective cost management..
 Gartner’s self-service benchmark tools and metrics deliver comparisons against published Industry Measures (IT Budget tool), Infrastructure Measures,
Applications Measures and IT Security Measures (comparison tools).
Recommendations
 A single benchmark should be considered the beginning of an ongoing measurement program. Organizations should consider investing in prescriptive or
in-depth benchmarking engagements on a recurring basis to support the budget cycle, or whenever making significant, fact-based IT or business
decisions.
 Use the Gartner ITBudget tool as a starting point to align and benchmark total IT spend to support fact-based decisions related to investments,
planning, budgeting, ongoing operational assumptions and identification of quantitative best practices.
 These benchmarks should be considered within the creation of future-state (both short- and long-term) objectives to quantify IT planning assumptions
and to better understand niche or industry competitive drivers, inhibitors, conditions and trends.
Gartner Industry Definition: Pharmaceuticals, Life Sciences and
Medical Products
Pharmaceuticals, Life Sciences and Medical Products
Organizations from which their primary revenue stream is derived from one or more of the following:
Pharmaceuticals and Life Sciences

Pharmaceuticals, Generic Pharmaceuticals, Hormones and Hormone Antagonists, Vaccines, Medicinal Chemicals and Botanical Products, Non-Prescription Drugs,
Veterinary Drugs, Vitamins and Nutritional Supplements.
Pharmaceutical Contract Laboratories, Pharmaceutical Contract Manufacturing Services, Pharmaceutical Contract Research Organization, Pharmaceutical Research and
Development.
Biotechnology, Agricultural Biotechnology, Biological Products, Biotechnology Research Equipment Manufacturers, Combinatorial Chemistry and Other Lead Generating
Technologies, Drug Delivery Technologies, Gene Research and Development, In Vivo (in the body) Diagnostic Substances, Microbiology, Orthbiological Products, Protein
and Genome Sequence Products, rDNA Pharmaceuticals, Life Sciences Tools and Services.
Medical Products
Healthcare Equipment and Supplies, Cryogenic Equipment, Dental Care Equipment, Anesthesia Equipment, Instruments and Accessories, Veterinary Equipment,
Hypodermic Syringes, Intravenous Tubes, Latex Examination Gloves, Medical Disposal Containers, Surgical Sets and Instruments, Medical Instruments, Medical Pumps,
Medical Thermometers, Medical Valves, Stethographs, Stethoscopes.
Hospital Facility Equipment, Hospital Beds, Operating Tables, Respiration Systems, Surgical and Laboratory Sterilizers, Medical Testing, Analyzing, and Diagnostic
Equipment, Allergy and Diagnostic Kits, Blood Analyzers, Blood Pressure Measuring Equipment, Cardioscopes, Electrocardiographs (ECGs), Fetal Monitors, Fiber Optic
Examination Instruments, Gynecological and Obstetrical Instruments, Heart Monitor Systems, HIV Test Kits, Intensive Care Monitors, Ophthalmology Instruments and
Appliances, Intraocular Lenses, Radiology Equipment, Ultrasound and Sonogram Equipment, Interventional Radiology Devices, Laparoscopic Devices, Cardiovascular
Equipment, Defibrillators, Heart Valves, Pacemakers, Stents, Electrotherapeutic Apparatus.
Rehabilitation Equipment and Accessories, Home Healthcare Equipment, Assistive and Corrective Equipment for People with Disabilities, Communication Devices for
People with Disabilities, Hearing Aids, Furniture Accessories for People with Disabilities, Prosthetics and Parts, Protection and Mobility Devices, Crutches, Walkers,
Wheelchairs, Orthopedic Devices.
IT Investment Measures
IT Spending Percent Change – Pharmaceuticals, Life Sciences…
IT spending percent change helps to put context around the directional movement of annual IT spending/budget levels. Revenue percent change versus IT
spending percent change identifies the relationship between IT investment and key business pressures. Is the business growing revenue, and at what rate?
Is IT spending/budget moving in the same direction? Is the change in IT spending leading or trailing revenue change? Mapping year-over-year business
growth to IT budget growth can be a powerful tool to understand the role that IT plays in the evolution of the business.
*Projected figure, based upon projected 2021 IT spending provided by Gartner clients
IT Spending Percent Change: Pharmaceuticals and Life Sciences saw a 3% drop in IT spending in 2020 from 2019. Projected to increase
by 1.2% in 2021.
IT Spending as a Percent of Revenue – Pharmaceuticals, Life
Sciences and Medical Products
IT Spending as a Percent of Revenue

IT spending as a percent of revenue is the most recognized measure of
total IT investment relative to top-line business results.
IT Spending as a Percent of Revenue: Pharmaceuticals and Life Sciences saw a slight (0.2%) increase in 2020 from 2019. Projected to
stay flat in 2021 at 3.2%.
IT Spending as a Percent of Operating Expense – Pharmaceuticals,
Life Sciences and Medical Products
IT Spending as a Percent of Operating Expense

IT spending as a percent of operating expense is another view of IT
investment level in terms of the role IT plays in overall business
spending patterns.
IT Spending as a Percent of Operating Expense: Pharmaceuticals and Life Sciences decreased by 0.1% from 2019 to 2020. Projected to
decrease slightly again by another 0.1% in 2021 to 3.8%.
Employee Ratios – Pharmaceuticals, Life Sciences and Medical Prods.
IT Spending per Employee IT Full-Time Equivalents as a Percent of Employees

IT spending per employee is often used to determine the amount IT FTEs as a percent of employees is a key measure of IT support
of IT support the average organization’s workforce receives. and IT intensity from a human capital perspective.
IT spending per employee increased slightly from 2019 with another slight projected increase in 2021. The number of IT employees in relation
to the overall employee population decreased very slightly by 0.1% in 2020.
Business Productivity
Ratios
Revenue and Operating Income per Employee – Pharmaceuticals…
Revenue per employee can help determine employee productivity in terms of revenue generation intensity. This measure is typically influenced by the
company business model and staffing strategy. Enterprises with highly labor-intensive operations tend to generate lesser revenue per individual as
compared to those enterprises which are highly automated. Effective and efficient uses of IT enable business processes to be streamlined, thus increase
employee productivity in terms of business results. While revenue may represent top line business results, it does not represent an organization’s ability to
generate income. This measure should be considered within the context of the enterprise operating model which drives operating income and profit margin
as well as within the context of the total workforce strategy. Operating income per employee is often employed as a measure of cost efficiency and
productivity at an enterprise level.
Profitability – Pharmaceuticals, Life Sciences and Medical
Products
Profitability is a measure of an enterprise’s cost-efficiency and can help outline the enterprise’s position relative to the industry as it is often related to
investment patterns.
IT Resource Distributions
IT Spending by Funding Source, and FTE Ratio – Pharmaceuticals,
Life Sciences and Medical Products
IT spending can come from various sources within an enterprise or an The distribution of IT FTEs (insourced versus contractor) can help provide
organization and is not restricted to the formal IT budget. Additional a view of the IT staffing strategy.
spending can occur within business unit budgets and be what is known as
“shadow IT.”
IT Spend by Category – Pharmaceuticals, Life Sciences and
Medical Products
IT operational versus capital spending helps to portray the IT investment The distribution of spending between asset categories outline the asset based
profile of an organization in a given year. cost controls to manage IT investments.
Strategic IT Spending Portfolio: Run, Grow and Transform the Business
IT Spending – Pharmaceuticals, Life Sciences and Medical Products
The distribution of IT spending to run, grow and transform the business provides a view of the IT investment profile or “portfolio” to support business
performance. In some industries, it is not uncommon to see a high “run” focus — typically because organizations in the industry are not planning strong
changes in business model growth or high organic growth — which often translates into a more “cost center” role for IT in the industry or niche sector.
The run, grow and transform business framework should always be viewed in business terms with respect to how IT will enable the business to grow or
transform revenue, operating income and/or profit margins.
Distribution of IT Spending and Staffing by IT Technical Area
The distribution of IT spending and staffing by IT technical area provides a view of key IT resource consumption in the context of the overall IT portfolio.
Applications Measures
Applications Spending (all industries)
Applications spending as a percent of total IT spending is helpful in Personnel costs per applications FTE provides a rough measure of what
understanding the relative level of investment to support the applications organizations are paying annually for their applications human resources.
portfolio. This will vary widely between geographies and skill sets required.
Application spending continues to take more of the IT Budget than other areas such as infrastructure. Some of this may be due to the rise of software as a
service which can take the place of infrastructure.
Application Budget Distribution (all industries)
The mix of any organization’s investments should match the organizational goals. If efficiency is desired, it may be more beneficial to have a higher investment in ERP. If driving
revenue and innovation is the vision then one might expect to see a higher investment in Digital and Externally Focused Applications.
Organizations make many different choices when they decide how to provision applications within their environments. They can build their own which requires more personnel and
offers the greatest flexibility, but that can come at a higher price. They can buy applications either using traditional licenses and their own infrastructure, or via software as a service.
They can also outsource custom built applications which allow access to even more capabilities but also requires good sourcing management skills. By measuring this distribution
organizations can determine where they may have optimization opportunities and see if their current distribution matches their strategy.
Applications Spending (all industries)
Applications staff typically makes up a large component of total IT staff. This The distribution of applications FTEs helps to determine the level of
measure, especially when viewed within industry, and in conjunction with external and “temporary” support applications receive. Higher levels of
outsourcing levels can be helpful in understanding the role of applications external support can expose an organization to risk of losing critical
staff and approaches to applications staffing within IT organizations. knowledge and processes that may leave when the contractors’ terms are
up.
Applications Spending Distribution: Development Versus Support
(all industries)
Distribution of spending by development versus support provides insight Distribution of applications activity (work profile), provides insight into level of
into whether organizations are placing emphasis on new capabilities or activity developing new applications versus supporting the portfolio of existing
supporting existing applications and functionality. applications.
Distribution of Applications Activity (Work Profile): by Industry
Infrastructure Measures
Infrastructure Spending as a Percent of Total IT Spending
Infrastructure spending as a percent of total IT spending helps in understanding the relative level of IT spending to support the environment from a total IT
portfolio perspective. This metric should be considered within the context of the overall technology & sourcing strategy. i.e., as the technology environment
plays a lesser or greater role in mission-critical business processes, it will play a smaller or larger role as a percentage of the total IT spending portfolio.
Infrastructure Spending and Staffing Distribution, by Function (all
industries)
It is not uncommon to reduce spending in one service only to have the follow-on effect of passing those costs off to another service. By monitoring
investments across all services, these costs transfers within IT can be more visible.
Infrastructure FTEs as a Percent of Total IT FTEs, by Industry
Infrastructure FTEs as percent of total IT FTEs is a measure of IT support intensity from a human capital perspective. Understanding the relative level of IT support
dedicated to an IT environment can also assist in identifying whether staff size is appropriate. Variables to consider in tandem with this metric include: IT staffing
distribution: contract versus insourced FTEs, the percentage of the environment outsourced (supported by a third party), as well as the evolving business requirements.
End-User Support Spending as a Percent of Total IT Spending
End-User Support spending as a percent of total IT spending helps in understanding the relative level of IT spending to support the environment from a total
IT portfolio perspective.
End-User Support FTEs as a Percent of Total IT FTEs, by Industry
Understanding the relative level of IT support dedicated to an IT environment can also assist in identifying whether staff size is appropriate. Variables to consider in
tandem with this metric include: IT staffing distribution: contract versus insourced FTEs, the percentage of the environment outsourced (supported by a third party), as
well as the evolving business requirements.
Annual Cost and FTE Productivity per Workload (all industries)
Annual cost per workload is often used to evaluate the relative cost efficiency level of the overall environment. This should be considered within the
context of business requirements, environment architecture and scale as well as productivity levels and service levels delivered.
Workload supported per FTE provides a look at dedicated FTE productivity levels. Understanding the productivity level of your IT staff in terms of units
supported can be very helpful in establishing efficient and effective workflow as well as in terms of ensuring your support staff is the “right size.” If your
support staff is supporting more than the middle 50 percent of the published sample, is this level of productivity sustainable? How will you adapt to
required future growth or complexity? How many sites and end-users are supported per FTE? Do the different sites have different productivity levels? How
does this compare to the service levels, the cost structure, the skill level of the support staff or the level of environment complexity?
Security Measures
IT Security Spending as a Percent of Total IT Spending (all
industries)
IT security spending as a percent of total IT spending is helpful in understanding the relative level of investment to support the security of the total IT environment from
a total IT portfolio perspective. As the workload factor here is “IT spending” the organizations with a higher percentage have more IT security spending relative to their
level of total IT spending. Subsequently, two organizations may spend the same nominal amount on IT Security, but one of them will be higher on this metric if they
have a lower level of total IT spending.
IT Security Spending as a Percent of Total IT Spending, by Industry
IT security spending as a percent of total IT spending is helpful in understanding the relative level of investment to support the security of the total IT environment from
a total IT portfolio perspective. As the workload factor here is “IT spending” the organizations with a higher percentage have more IT security spending relative to their
level of total IT spending. Subsequently, two organizations may spend the same nominal amount on IT Security, but one of them will be higher on this metric if they
have a lower level of total IT spending.
IT Security Spending per Employee (all industries)
IT security spending per employee is another indicator of total security investment. Using this denominator provides a more stable baseline since the
number employees tends to vary less year to year than IT spending does. This metric is dependent on how “people intensive” the enterprise is. It is useful
to understand Enterprise IT Spending per Employee relative to peers in conjunction with this metric
IT Security Spending per Employee, by Industry
IT security spending per employee is another indicator of total security investment. Using this denominator provides a more stable baseline since the
number employees tends to vary less year to year than IT spending does. This metric is dependent on how “people intensive” the enterprise is. It is useful
to understand Enterprise IT Spending per Employee relative to peers in conjunction with this metric.
IT Security Spending by Operation, by Industry
IT security spending distribution by operation is important as it indicates what types of investments the enterprise is making.
IT Security Spending Distribution by Asset Class (all industries)
The distribution of IT security spending by asset class provides an understanding of how investments are dispersed within the environment. This distribution
helps to outline non-personnel versus personnel related cost allocations.
Operational Infrastructure Security Spending and Staffing
Distribution by Task (all industries)
The distribution of operational infrastructure security spending by task provides an understanding of how security investments are dispersed across the
technology environments. This distribution helps to outline technology-based spending allocations. Similarly, the distribution of operational infrastructure
security staffing by task provides an understanding of how security FTEs are dispersed to support the technology environments and helps to outline human
resource allocations.
IT Security FTEs as a Percent of Total IT FTEs
IT security FTEs as percent of total IT FTEs is a measure of IT security support intensity from a human capital perspective. IT security personnel includes in-
house and contract full-time equivalents supporting the following IT security operations: Operational infrastructure, vulnerability management and security
analytics, application security, and governance, risk, and compliance management. Understanding the relative level of security support dedicated to an IT
environment can also assist in identifying whether staff size is appropriate. This should be considered within the context of the overall
sourcing strategy and future state objectives. Variables to consider in tandem with this metric include: IT staffing distribution: contract versus insourced
FTEs, the percentage of the environment outsourced (supported by a third-party), as well as the evolving business requirements.
IT Security FTEs as a Percent of Total IT FTEs, by Industry
IT Security Staffing by Operation, by Industry
IT Security staffing distribution by operation is important as it indicates the personnel investments that go along with the IT Security spending distribution.
Certain areas tend to be more personnel intensive such as governance, risk, and compliance management.
Appendix
IT Key Metrics Data 2021:
Published Documents and
Metrics
Some content may not be available as part of

your current Gartner subscription.
ITKMD 2021: Introduction and Industry Measures
IT Key Metrics Data 2021: Introduction Documents
IT Key Metrics Data 2021: Overview; Gartner RN# G00737576
IT Key Metrics Data 2021: Working with ITBudget and Comparison Tools; Gartner RN# G00737578
IT Key Metrics Data 2021: Demographics ; Gartner RN# G00737580
IT Key Metrics Data 2020: Frequently Asked Questions; Gartner RN# G00737581
IT Key Metrics Data 2021: Definition of Industries; Gartner RN# G00737582
IT Key Metrics Data 2020: Industry Measures Documents
IT Key Metrics Data 2021: Industry Measures — Executive Summary; Gartner RN# G00737583
IT Key Metrics Data 2021: Industry Measures — Insights for Midsize Enterprises; Gartner RN# G00737584
IT Key Metrics Data 2021: Industry Measures — IT Budget Practitioners Guide to Establish a Baseline; Gartner RN# G00737585
IT Key Metrics Data 2021: Industry Measures — IT Budget Data Collection Toolkit for Online Comparison; Gartner RN# G00737586
IT Key Metrics Data 2021: Industry Measures — Framework Definitions; Gartner RN# G00737587
IT Key Metrics Data 2021: Industry Measures — ITBudget Next Steps; Gartner RN# G00737588
IT Key Metrics Data 2021: Industry Measures — Cross-Industry Analysis; Gartner RN# G00737592
IT Key Metrics Data 2021: Industry Measures — Banking and Financial Services Analysis; Gartner RN# G00737593
IT Key Metrics Data 2021: Industry Measures — Chemicals Analysis; Gartner RN# G00737594
IT Key Metrics Data 2021: Industry Measures — Construction, Materials and Natural Resources Analysis; Gartner RN# G00737595
IT Key Metrics Data 2021: Industry Measures — Consumer Products Analysis; Gartner RN# G00737596
IT Key Metrics Data 2021: Industry Measures — Education Analysis; Gartner RN# G00737597
IT Key Metrics Data 2021: Industry Measures — Energy Analysis; Gartner RN# G00737598
IT Key Metrics Data 2021: Industry Measures — Food and Beverage Processing Analysis; Gartner RN# G00737599
IT Key Metrics Data 2021: Industry Measures — Government — National and International Analysis; Gartner RN# G00737600
IT Key Metrics Data 2021: Industry Measures — Government — State and Local Analysis; Gartner RN# G00737601
IT Key Metrics Data 2021: Industry Measures — Healthcare Providers Analysis; Gartner RN# G00737602
IT Key Metrics Data 2021: Industry Measures — Industrial Electronics and Electrical Equipment Analysis; Gartner RN# G00737603
IT Key Metrics Data 2021: Industry Measures — Industrial Manufacturing Analysis; Gartner RN# G00737604
IT Key Metrics Data 2021: Industry Measures — Insurance Analysis; Gartner RN# G00737605
IT Key Metrics Data 2021: Industry Measures — Media and Entertainment Analysis; Gartner RN# G00737606
IT Key Metrics Data 2021: Industry Measures — Pharmaceuticals, Life Sciences and Medical Products Analysis; Gartner RN# G00737607
IT Key Metrics Data 2021: Industry Measures — Professional Services Analysis; Gartner RN# G00737610
IT Key Metrics Data 2021: Industry Measures — Retail and Wholesale Analysis; Gartner RN# G00737611
IT Key Metrics Data 2021: Industry Measures — Software Publishing and Internet Services Analysis; Gartner RN# G00737612
IT Key Metrics Data 2021: Industry Measures — Telecommunications Analysis; Gartner RN# G00737613
IT Key Metrics Data
RESTRICTED 2021: Industry Measures — Transportation Analysis; Gartner RN# G00737614
DISTRIBUTION
42 Key
IT © 2021 Gartner,
Metrics Data Inc. and/orIndustry
2021: Measures — Utilities Analysis; Gartner RN# G00737615
its affiliates.
ITKMD 2021: Infrastructure, Applications, and IT Security Measures
IT Key Metrics Data 2021: Infrastructure Measures Documents
IT Key Metrics Data 2021: Infrastructure Measures — Executive Summary; Gartner RN# G00737616
IT Key Metrics Data 2021: Infrastructure Measures — Practitioners Guide to Establish a Baseline; Gartner RN# G00737617
IT Key Metrics Data 2021: Infrastructure Measures — Data Center Data Collection Toolkit for Online Comparison; Gartner RN# G00737618
IT Key Metrics Data 2021: Infrastructure Measures — Data Center Framework Definitions; Gartner RN# G00736451
IT Key Metrics Data 2021: Infrastructure Measures — Network Framework Definitions; Gartner RN# G00737444
IT Key Metrics Data 2021: Infrastructure Measures — Windows Server Analysis; Gartner RN# G00737620
IT Key Metrics Data 2021: Infrastructure Measures — Linux x86 Server Analysis; Gartner RN# G00737621
IT Key Metrics Data 2021: Infrastructure Measures — UNIX Server Analysis; Gartner RN# G00737622
IT Key Metrics Data 2021: Infrastructure Measures — Mainframe Analysis; Gartner RN# G00737623
IT Key Metrics Data 2021: Infrastructure Measures — Storage Analysis; Gartner RN# G00737624
IT Key Metrics Data 2021: Infrastructure Measures — Network Analysis; Gartner RN# G00737625
IT Key Metrics Data 2021: Infrastructure Measures — Practitioners Guide to Establish a Baseline; Gartner RN# G00737626
IT Key Metrics Data 2021: Infrastructure Measures — EUD&PM Data Collection Toolkit for Online Comparison; Gartner RN# G00737627
IT Key Metrics Data 2021: Infrastructure Measures — End-User Device & Print Management Framework Definitions; Gartner RN# G00736448
IT Key Metrics Data 2021: Infrastructure Measures — End-User Device and Print Management Analysis; Gartner RN# G00737628
IT Key Metrics Data 2021: Infrastructure Measures — ITSD Data Collection Toolkit for Online Comparison; Gartner RN# G00739341
IT Key Metrics Data 2021: Infrastructure Measures — IT Service Desk Framework Definitions; Gartner RN# G00737441
IT Key Metrics Data 2021: Infrastructure Measures — IT Service Desk Analysis; Gartner RN# G00737629
IT Key Metrics Data 2021: Applications Measures Documents
IT Key Metrics Data 2021: Applications Measures — Practitioners Guide to Establish a Baseline; Gartner RN: G00737630
IT Key Metrics Data 2021: Applications Measures — Data Collection Toolkit for Online Comparison; Gartner RN: G00737631
IT Key Metrics Data 2021: Applications Measures — Framework Definitions; Gartner RN# G00737632
IT Key Metrics Data 2021: Applications Measures — Total Cost and Staff Analysis; Gartner RN# G00737633
IT Key Metrics Data 2021: Applications Measures — Application Development Analysis; Gartner RN# G00737634
IT Key Metrics Data 2021: Applications Measures — Application Support Analysis; Gartner RN# G00737635
IT Key Metrics Data 2021: Applications Measures — Project Measures Analysis; Gartner RN# G00737636
IT Key Metrics Data 2021: IT Security Measures Documents
IT Key Metrics Data 2021: IT Security Measures — Practitioners Guide to Establish a Baseline; Gartner RN# G00737637
IT Key Metrics Data 2021: IT Security Measures — Data Collection Toolkit for Online Comparison; Gartner RN# G00737638
IT Key Metrics Data 2021: IT Security Measures — Framework Definitions; Gartner RN# G00737639
IT Key Metrics Data 2021: IT Security Measures — Analysis; Gartner RN# G00737640

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IT Key Metrics 2021

Pharmaceuticals and Life Sciences

IT Spending as a Percent of Revenue

IT Spending as a Percent of Operating Expense

IT Spending per Employee IT Full-Time Equivalents as a Percent of Employees

Some content may not be available as part of

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