Overview of IT Spending in Israeli Companies
According to a survey conducted by IDC Israel in collaboration with the Israeli Information Technology Bureau (2023-2024), IT expenditures in Israeli companies reveal interesting trends:
Breakdown by Company Size
Small Companies (10-50 employees)
- Annual IT expenditure: ₪350,000-₪700,000
- Average cost per employee: ₪7,000-₪14,000
- Percentage of revenue: 2.8%-4.2%
Medium Companies (51-200 employees)
- Annual IT expenditure: ₪800,000-₪2,500,000
- Average cost per employee: ₪12,000-₪18,000
- Percentage of revenue: 3.5%-5.5%
Large Companies (200+ employees)
- Annual IT expenditure: ₪3,000,000 and above
- Average cost per employee: ₪15,000-₪25,000
- Percentage of revenue: 4%-7%
Detailed IT Expenditure Breakdown
Core Infrastructure
- Physical/virtual servers: 15-20% of the budget
- Networking & communications: 10-15% of the budget
- Computers & end-user devices: 10-12% of the budget
Software & Licensing
- ERP/CRM systems: 12-15% of the budget
- Microsoft licensing (Office 365, Windows): 8-10% of the budget
- Industry-specific software: 5-8% of the budget
Cybersecurity
- Security systems & antivirus: 8-10% of the budget
- Backup & disaster recovery: 5-7% of the budget
- Monitoring & control: 4-6% of the budget
Cloud Services
- Cloud infrastructure (IaaS): 10-15% of the budget
- Cloud services (SaaS): 8-12% of the budget
IT Staff & Support
- Internal IT team: 15-20% of the budget
- External IT support services: 8-12% of the budget
Data Sources & Methodology
The analysis is based on a combination of the following sources:
- IDC Israel Survey 2023-2024 – IDC FutureScape: Worldwide IT Industry 2024 Predictions
- Central Bureau of Statistics IT expenditure data
- STKI Research on the Israeli IT Market
- Survey by the Association of IT Infrastructure Companies in Israel
- Israel Innovation Authority reports on technology investments
We consolidated data and insights from these sources to provide a comprehensive overview of IT system costs in Israeli companies in 2024.
The numbers are based on:
- Survey of 500 Israeli companies
- Research period: January 2023 – December 2023
- Sector distribution: High-tech, finance, industry, services
- Quarterly IT expenditure analysis
- Comparison with previous years’ data
Forecasted Trends for 2024
- 15-20% increase in cybersecurity investments
- 25% growth in cloud service adoption
- 10% rise in automation tool investments
- 30% increase in hybrid work solutions investments
Note: The data represents market averages in Israel, and significant variations exist across companies and industries. Organizations are advised to tailor their IT budgets based on their specific needs.
