Websigma Global Mobile Development

6 most useful Tech Indicators to avoid Technology breakdowns in your Organization!

The right technology KPIs in business is an essential tool that helps organization understand how well they are doing in delivering on their tech goals. These Key Metrics must be tracked on a routine to avoid technology mishaps.

Technology Indicators provide  meaningful information for an informed decision-making.

I have narrowed down to essential 5 tech metrics you must track for  for smooth functioning of your business.

1.   IT Cost as a Percentage of Revenue

IT Cost as a Percentage of Revenue is one of the most common measures of the efficiency of IT operations.

Total spend on IT (comprising hardware, software and networking costs – including outsourcing costs) as a percentage of annual revenues (sales).

2.   IT Project Earned Value (IT EV)

IT Project Earned Value (IT EV) measures the extent to which projects are making the desired progress. It allows companies to understand how much work has been completed as well as the costs of the work, both in relation to the project expectations.

EV = % complete x BCWP

Where BCWP is the Budgeted Cost of Work Performed = the total budgeted costs for labour and resources for the project.

Performance Level = (ACWC / EV) x 100

Where ACWC is the Actual Cost of Work Scheduled or the total amount in labour and resources that has been spent on the project to date.


3.    IT Maintenance Ratio

IT Maintenance Ratio provides an insight into how much money as a percentage of the IT budget is devoted to maintenance (as opposed to e.g. development).

IT Maintenance Ratio = IT budget / costs devoted to ‘maintenance’

4.   Incident Resolution Index

Incident Resolution Index measures the incidents that are resolved within the Service Level Agreement. Incidents can refer to infrastructure incidents or incidents with applications. Both can be measured and reported separately.

Incident Resolution Index = Incidents resolved within SLA / Total Incidents

5.   System Downtime

System Downtime measures the extent to which IT systems are available when they are needed.

System Downtime = Planned Operating Time in time period t – Actual Operating Time in time period

6.   Average age of Software and IT Infrastructure

Average age of Software measures the average age of the software in use. Old or aging software applications can indicate up-coming up-grade bills or potential issues with software performance and compatibility.

Average age of IT Infrastructure measures the average age of the IT infrastructure in place. Old or aging IT infrastructure can indicate up-coming up-grade costs or potential issues with IT performance.


In today’s competitive technological landscape, it is more important than ever that business leaders and senior executives are able to make better informed decisions based on solid Technology Key Performance Indicator. Without them, an organization is simply racing ahead blind.

KPIs, when properly understood and used effectively, provide a powerful tool in achieving better performance.