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What is the typical size of an IT Department in terms of number of employees, specifically for software developers of a retail/ecommerce/warehouse organization with $150million dollars in revenue to $500 million dollars in revenue?
Hello! Thank you for your request to determine the typical size of an IT department in terms of number of employees for software developers of a retail/e-commerce/warehouse organization with $150 - $500 million in revenue. The short version is that a typical IT Department for a retail/e-commerce/warehouse organization with $150 million to $500 million dollars in annual revenue consists of 11 employees, of which 5 are Software Developers, 2 are Database Systems Administrators, 2 are in IT Support, 1 is an information analyst and 1 does miscellaneous IT work.
METHODOLOGY
My colleague and I have scoured the Internet for articles, papers and statistics related to this subject.
Firstly, I identified companies that met the prerequisite parameters. From there I correlated data from these companies with that provided by the Bureau of Labor Statistics and estimated the makeup of a typical IT Department in regards to the set parameters.
FINDINGS
According to the Bureau of Labor Statistics, 508,840 individuals are employed in the non-store retail industry in the US. Out of these 508,840; 21,940 (4.31%) are employed in IT. Out of the 21,940 individuals employed in IT; 11,120 (50%) are software developers, 1,990 (9%) are analysts; 3,530 (16%) in systems administration; 4,140 (19%) in support; and 1,170 (6%) in other IT jobs.
From a report by Inc.com companies were identified that adhered to the required parametes. The first company that fills the required parameters is Dollar Shave Club and the top, Yeti Coolers. By cross-referencing data provided by Inc.com on these companies, it has become apparent that despite a large gap in annual revenue, these companies employ on average 250 individuals. If we now apply the 4.31% of all employees that comprise the IT Department in this industry, we see:
0.0431 * 250 = ~11. Therefore we can conclude that the typical size of an IT Department of a retail/e-commerce, warehouse organization with a revenue of between $150 and $500 million is 11 employees. Since we now know the typical size of the IT Department of these organizations we can now breakdown this number further:
Job Type % No of Employees
Total 100 11
It should be interesting to note that the Bureau of Labor Statistics estimates that employment of software developers in the US is set to rise by 17% from 2014 to 2024.
CONCLUSION'
to wrap it up, a typical IT Department for a retail/e-commerce/warehouse organization with $150 million to $500 million dollars in annual revenue consists of 11 employees, of which 5 are Software Developers, 2 are Database Systems Administrators, 2 are in IT Support, 1 is an information analyst and 1 does miscellaneous IT work.
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