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In 2018, the global traditional outsourcing industry generated 85.6 billion U.S. dollars in revenue. In that same year, the total contract value of the business process outsourcing (BPO) market amounted to 23.6 billion U.S. dollars.

Statista

More Tech Services Stats

Companies with longer contracts (2+ years) reported the lowest annual unit churn

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

Internet Sales strategies have a significantly lower CAC of just $0.42

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.

More Growth Strategy Stats

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

Analyzed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

Negative Churn and Expansion Revenue

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide