Getting the size of your technology department right is both an art and a science. Too few people and innovation stalls. Too many, and you’re burning through budget with diminishing returns. Benchmarks give leaders a data-backed way to understand what “right-sized” looks like in reality.
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In today’s environment, where every company is becoming a technology company through the adoption of AI, understanding how your tech team compares to peers can reveal opportunities to optimize headcount, structure, and spend.
There’s no “correct” size for a technology department, but benchmarks provide valuable context. On average, technology departments account for 3% to 10% of total company headcount, but this can vary on industry and business model. One exception to these figures are software companies, who typically have a much larger percentage of their workforce in the technology department. Here are some industry-specific examples:
One key takeaway is that company size and digital maturity will heavily influence your tech team size. A mid-sized company investing in automation or AI might temporarily exceed benchmarks as it builds up internal technical capability. It’s important to understand whether your structure reflects strategic intent, not just historical staffing patterns.
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A right-sized technology team keeps the business moving efficiently while enabling growth. Leaders often sense when their teams are too lean or too bloated, but comparative benchmarking data can provide the clarity that intuition lacks. Here are some of the indicators to watch out for:
These are the metrics that can help to confirm your gut feeling:
If your ratios diverge significantly from peers, that’s your signal to investigate whether you’re over or under-investing. Find these benchmark metrics at a trusted provider like CompanySights – Search tech team benchmarks.
The modern technology team is far from homogeneous. It’s an ecosystem of specialists who keep systems running and move the business forward. Typical sub-functions within a tech team include:
As organizations scale, they often diversify further, adding roles like DevOps engineers, cloud architects, and data governance leads. The right mix of these functions will depend on your digital maturity, not just your size.
Two companies of the same size can have completely different technology teams. The difference usually comes down to industry, tech strategy, and operating model. Key factors include:
Digital-first companies rely heavily on in-house tech talent, while traditional firms may outsource core functions. This decision alone will have a material impact on the number of IT professionals required in-house.
Cloud infrastructure and automation can reduce the need for traditional IT roles while increasing demand for software and data specialists.
Industries like healthcare or finance require dedicated cybersecurity and compliance personnel.
Companies investing in new digital products often need more developers, while stable operations may justify a leaner structure.
Global organizations require additional support for systems integration, local compliance, and time zone coverage.
Understanding these levers helps explain why your benchmark position might differ from a peer, and whether that difference makes strategic sense. When benchmarking, it’s absolutely critical to compare yourself to similar sized businesses within the same industry, in the same geography, and ideally with a similar operating model.
Benchmarks are a lens into how similar companies staff and operate. This outside-in view provides leaders with a competitive advantage, and the most effective leaders use them as guideposts, not rigid rules. Here is a practical five-step approach to benchmarking your tech team:
Gather workforce data from your HRIS, so that you can prepare the metrics mentioned in the section: How Do You Know If Your Tech Team Is the Right Size?
Agree your benchmark sample set based on organizations of similar size, industry, and digital maturity. Find relevant external benchmarks that match your peer group criteria – Search here.
Compare your metrics against the external benchmarks, then identify where you’re heavier or lighter than peers.
Once you understand how you stack up based on benchmarks, ensure staffing aligns with growth priorities or transformation efforts.
Use these benchmarking insights to guide hiring freezes, restructuring, or capability building.
Benchmarking shifts the conversation from “how busy are we?” to “how do we compare?” and ultimately to “what’s the right balance for our strategy?”
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Deciding how many people your technology department really needs isn’t about chasing averages. It’s about using data to support smarter, more strategic choices to enable your business for future success.
Benchmarks help you align technology headcount with business ambition, improve efficiency, and focus investments where they’ll make the biggest impact. Whether you’re scaling a startup or rationalizing a mature enterprise, data-driven workforce design ensures your technology function is built for performance, not just maintenance.
Most companies with around 1,000 employees will have 30 to 100 employees in their tech function, depending on their industry and digital focus. For example, software companies have significantly more tech employees, while blue-collar organizations tend to be at the lower end of the range.
A balanced ratio is typically 3 to 1 or 4 to 1, meaning three to four developers for every IT support professional. This shifts based on automation, user volume, and internal versus external product focus.
Top performers usually invest more in digital capability rather than running leaner. They use automation and strong processes to maintain efficiency, but they don’t under-resource critical areas like cybersecurity or data engineering.
Healthy scaling often follows a revenue-to-tech headcount ratio that improves over time. For example, a company might start with one tech employee per $1 million in revenue, but as systems mature, that might improve to one per $2 or $3 million.
Companies often outsource infrastructure management, helpdesk, and certain cybersecurity functions, especially for 24/7 coverage or specialized expertise. Core engineering, data, and product development are usually kept in-house to protect IP and maintain agility.
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