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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.

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More Tech Services Stats

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.

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

It’s been reported that women who work in computer and mathematical fields earn 80 cents to the dollar that men earn doing the same job

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

More Growth Strategy Stats

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

The venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

80% of venture capital investments take place in the enterprise

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

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