Why IT Matters in Midsized Companies

A recent study of companies in the US, Brazil, and Germany with 100-500 employees shows a high correlation between IT capability and profitable business growth. Firms that build high capability IT systems grow faster than firms that do not, and do so while increasing both revenue and profits.



In particular US service firms benefit more than their product counterparts.
The delta in sales growth between high performers (top quartile) and low performers (bottom quartile) in the services group is nearly three times that of the product firms. It is likely that the impact of IT on services firms is greater than product firms because service firms are less dependent on fixed production processes and preferred sourcing relationships for growth.