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It's a good point. It varies widely depending on the industry, but even in the software industry a good rule of thumb is that IT costs about 10% of revenue (so
by mikekchar 6y ago
It's a good point. It varies widely depending on the industry, but even in the software industry a good rule of thumb is that IT costs about 10% of revenue (some places are as high as 30%, some as low as 2%). But that includes all the management (not executive management) and support staff. The spend for sales and marketing is much higher than development (though sometimes most of that goes out of the company, paying for sales channels, etc).
- TheSpiceIsLife 6y ago> IT costs about 10% of revenue (some places are as high as 30%, some as low as 2%). That’s the total expense, right? Not just employee remuneration.
- mikekchar 6y agoYes. However, it may or may not include equity depending on how things are set up.
- TheSpiceIsLife 6y agoDo you mean employee equity? Isn't that usually considered part of total remuneration?
- sidlls 6y agoIt’s not a cost as a function of revenue the same way cash, perks, and other benefit are. It’s also not clear that typical grants are enough to close the gap to “more than half” as the op remarked.