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

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

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

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

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

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

When venture capitalists participate in seed rounds, the average round size is 3x larger

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

80% of venture capital investments take place in the enterprise

More Growth Strategy Stats

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

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

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

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

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

47% of millennials want to work at diverse companies, according to a recent study.

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

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