Understanding the IT-to-Employee ratio: Its rise and repercussions

This blog is a deep dive into the IT-to-employee ratio reported in this year’s State of SaaS. Stay tuned for the full report.

It’s 2025 and it’s no surprise that the IT workload is immense. We live in a world where technology is not just a tool, but the very backbone of our operations. From governance and cybersecurity to data management and user support, the demands on IT departments are constantly escalating.

IT-to-employee ratio climbed to 1 IT person for every 108 employees in 2024, making the IT’s workload more difficult (State of SaaS 2025, coming soon!).

This dramatic increase paints a stark picture of the challenges faced by IT professionals and the potential repercussions for businesses. 

The numbers don’t lie: A growing gap

The steady climb of the IT-to-employee ratio is a trend that is always one to keep an eye on. A decade ago, the ratio was significantly more manageable, allowing for more personalized support and proactive maintenance. However, as businesses have steadily embraced digital transformation, including the steady adoption of SaaS applications, the strain on IT teams has become palpable. 

Why this surge? Several factors contributed to this trend:

• Rapid SaaS adoption: SaaS apps have revolutionized how businesses operate, but it also adds complexity. Managing numerous SaaS applications, integrations, and security protocols requires significant IT resources.
• Remote work revolution: The rise of remote and hybrid work models has expanded the scope of IT support. Ensuring seamless connectivity, security, and productivity for distributed teams is a constant challenge.
• Cybersecurity threats: The ever-evolving landscape of cyber threats necessitates robust security measures, demanding specialized expertise and constant vigilance from IT professionals.
• Data explosion: The sheer volume of data generated by businesses requires sophisticated data management and analysis tools, increasing the demand for skilled IT personnel.
• Budgetary constraints: Many organizations struggle to allocate sufficient resources to their IT departments, leading to understaffing and overstretched teams.

The repercussions can be a domino effect

For IT leaders, the creeping reality of an inflated IT-to-employee ratio isn’t merely a departmental concern, it’s a strategic vulnerability that can trigger a cascading series of operational and financial setbacks.

This notion of a “domino effect” isn’t hyperbole, but a stark depiction of the interconnectedness of the modern organization. When IT resources are stretched beyond their capacity, the initial strain manifests as increased burnout within the IT teams themselves. This directly translates to decreased productivity, higher turnover, and a diminished ability to respond to critical incidents.

The ripple effects can extend further, compromising the organization’s security posture. Overburdened IT staff, operating under constant pressure, are more prone to errors, overlooking critical security patches, or cutting corners in security protocols. This creates an environment ripe for breaches and data loss, carrying significant regulatory and reputational risks. 

Beyond security, the organization’s innovation pipeline stagnates. When IT professionals are constantly firefighting, they have little bandwidth for strategic initiatives, digital transformation projects, or exploring emerging technologies that could provide a competitive edge. This slowdown impacts the entire business, limiting its ability to adapt and grow in a rapidly evolving market. 

Ultimately, the inflated ratio translates to a tangible financial impact, through increased operational costs, potential compliance fines, and lost revenue opportunities. As IT leaders grapple with this imbalance, they work to bridge this gap in a multitude of ways.

Strategies for mitigation

Addressing the challenges posed by the rising IT-to-employee ratio requires a multifaceted approach:

• Automation: Moving beyond broad automation, IT teams should aim for granular control over user lifecycle management. Tools like BetterCloud facilitate this by enabling the automation of specific actions, such as: application access based on granular user attributes, automated responses to security alerts related to user activity, and policy-driven data transfer during offboarding.
• Artificial Intelligence (AI): The integration of AI tools is rapidly expanding across numerous organizations, with IT departments at the forefront. This adoption is driven by the significant potential for increased productivity.
• Employee self-service: Empowering employees with self-service tools, like password resets and software requests, can reduce the number of support requests handled by the IT department.
• Strategic staffing: Investing in strategic staffing and training programs can ensure that the IT department has the necessary skills and resources to meet the organization’s needs.
• Software optimization: Optimizing your current tech stack not only frees up spend, but frees up IT resources. A win-win!
• Prioritize preventative maintenance: Regular system updates, security audits, and proactive maintenance will reduce the amount of reactive work that the IT department must complete.

Looking ahead: Adapting to the new reality

The rising IT-to-employee ratio is a clear indicator of the evolving role of IT in the modern workplace. Organizations must adapt to this new reality by investing in the right tools, technologies, and talent. By embracing automation, leveraging managed services, and empowering employees, businesses can bridge the gap and ensure that their IT departments are equipped to meet the challenges of the future.

The upcoming State of SaaS 2025 will share even more insights and valuable data for you to help navigate the growing complexities of the modern SaaS landscape. 

Registration is now open for the State of SaaS webinar where Jesse Levin will share the top 10 must know statistics for you to succeed this year! Save your seat.

Looking to help your IT team without adding headcount? We’re here to help with the only unified SaaS management platform on the market. Book a demo today.