What percentage of revenue is for IT expenses?

There is no set percentage of profit that should be spent on IT and risk management, as it can vary depending on the specific needs of the business and industry. However, it's generally recommended that businesses allocate a sufficient budget for these areas in order to effectively manage and mitigate risks and ensure the smooth operation of critical systems and technology.

The percentage of profit allocated for IT and risk management can also depend on the size of the business, with larger companies having higher costs. Additionally, the industry a business operates in can also affect the budget allocated for IT and risk management. For example, a business in the finance or healthcare industry may need to allocate a higher budget for IT and risk management due to increased regulatory compliance requirements.

According to Gartner, a leading research and advisory company, on average, companies allocate 3-5% of their revenue for IT expenses, including hardware, software and services. As for risk management, The National Small Business Association (NSBA) reports that small businesses spend an average of $83,000 per year on cybersecurity.

It's important for businesses to regularly review and evaluate their IT and risk management budget to ensure that it is adequate to meet their needs and that the resources are being used effectively.

Thoughts?