Glossary - Benchmarking Prism

Function Costs

Total function cost Total cost equals labor, outsourcing, technology and other cost (LOTO) for a function.
Labor cost Employee cash compensation (base pay, overtime, cash incentives/bonuses) plus benefits (company and statutory). Excludes stock-based compensation. Also includes costs for temporary and/or contract labor.
Outsourcing cost External, third-party costs incurred through the delivery of a process. Does not include any one-time project costs and contract labor costs.
Technology cost The allocation of IT cost to each function. Includes not only systems cost, but also the allocation of IT labor cost, outsourcing cost, and other cost that supports this function.
Other cost Facilities, travel, training, supplies, subscriptions.
Systems cost Systems cost is the total depreciation / amortisation on computer-related equipment assets, system and software costs, data and voice-related networking and communications costs and annual license fees (application software only).  Excludes any capital and large one-time costs.
Process cost The sum of labor and outsourcing cost.

 

Staff

Staff Employees, contractors, and temporaries. One staff equals 176 hours per month. Use the staff that is appropriate and generally accepted for the work location. If overtime is recurring, then it should be included in the staff calculation.
Labor rate The labor cost divided by the staff performing that function or process.
Employee A person who receives a tax statement (W-2) at the end of each payroll year.
Manager A person who has evaluation responsibilities over others.
End user Anyone authorised to call the IT help desk.

 

Comparators

Top Decile Top decile represents the company within the peer group operating at the 10th percentile for function cost. While the top decile value does not necessarily equal the 10th percentile value for each metric, the top decile comparator shows where top performers (lowest-cost companies) in the peer group are investing their resources.
Low-cost performer (LCP) Low-cost performer represents the company within the peer group operating at the 25th percentile for function cost. While the LCP value does not necessarily equal the 25th percentile value for each metric, the LCP comparator shows where low-cost companies in the peer group are investing their resources.
Median Median represents the company within the peer group operating at the 50th percentile (median) for function cost. While the median value does not necessarily equal the 50th percentile value for each metric, the Median comparator shows where middle-cost companies in the peer group are investing their resources.
High-cost performer (HCP) High-cost performer represents the company within the peer group operating at the 75th percentile for function cost. While the HCP value does not necessarily equal the 75th percentile value for each metric, the HCP comparator shows where high-cost companies in the peer group are investing their resources.
10th Percentile The 10th percentile of any given metric calculated from the peer group; 10% of the peer group responses are below this value. However, since each metric is calculated independently, this comparator does not necessarily indicate lowest cost overall.
25th Percentile The 25th percentile of any given metric calculated from the peer group; 25% of the peer group responses are below this value. However, since each metric is calculated independently, this comparator does not necessarily indicate low cost overall.
50th Percentile The 50th percentile (median) of any given metric calculated from the peer group; 50% of the peer group responses are below this value. However, since each metric is calculated independently, this comparator does not necessarily indicate median cost overall.
75th Percentile The 75th percentile of any given metric calculated from the peer group; 75% of the peer group responses are below this value. However, since each metric is calculated independently, this comparator does not necessarily indicate high cost overall.
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