Only 35 percent of Dutch organizations have a complete overview of their IT costs. Two-thirds say they invest in technology too often without knowing what return it yields. As a result, the Netherlands ranks lower than Germany, Portugal, and Spain.
This is according to new research by Conclusion. In virtually every area related to cost transparency and value assessment, the Netherlands ranks at the bottom. This is striking, as Dutch IT decision-makers identify the problem more clearly than their counterparts across the border.
For example, 71 percent in Germany say they have a complete picture of IT costs, compared to 56 percent in Spain and 47 percent in Portugal. The Netherlands lags behind at 35 percent. The picture is similar when it comes to measuring value: 49 percent of Dutch organizations measure the value of digital services to a large extent or systematically, compared to 77 percent in Spain and 71 percent in Germany.
Value based on assumptions
In the Netherlands, 17 percent of organizations base the value of digital services primarily on assumptions. In Spain, that figure is 2 percent, and in Germany, 4 percent.
Across all four countries, the picture looks more favorable. There, 85 percent report having a largely or fully comprehensive cost overview based on Total Cost of Ownership. However, only 55 percent consider that overview to be truly complete. The rest are missing items such as indirect costs and future obligations.
Technical debt (the debt resulting from outdated systems, temporary solutions, and deferred maintenance) plays a major role. Three out of five view it as a major or structural barrier to innovation, but only 18 percent use it as a criterion in investment or phase-out decisions. And 72 percent agree that delaying structural solutions leads to rising costs and risks.
Tip: Conclusion expands into Portugal with the acquisition of Scone Consulting