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

Quote Info

The IT services market encompasses the range of services that assist individuals and enterprises in implementing, managing, and operating the wide variety of processes, systems, software, equipment, and peripherals that are used in the modern IT environment. Globally, the broader information technology market reached 3.65 trillion U.S. dollars in 2018, with IT services spending representing more than a quarter of the total market. In terms of IT market growth, services are advancing steadily, second only to enterprise software spending. Year on year, IT services spending is expected to increase at a rate of around 5.5 percent.

More Tech Services Stats

53% of marketers say “no” to projects never or just a few times a year, while another 26% simply don’t have the authority to say “no” at all

How Often Should The Pricing Committee Be Meeting And Making Changes?

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

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

Growing faster has twice as much impact on share price as improving margins

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

The median annual unit churn for SAAS companies was 10% in 2016

There are around 3.8 million e-commerce sites in the USA

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

More Growth Strategy Stats

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

SaaS IPOs have more than doubled over the last 12 years

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

54% treat upselling and add-on sales as high priority

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

A 1% increase in pricing strategy yields an average 11% increase in profit

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50