Less opinion, more facts
In the modern analyst ecosystem there is no shortage of opinions about how the IT services market is faring. Some analysts will say the market is healthy and growing at greater than 7%, while some pundits will say the market is declining at -5%. In a world of opinions, audited financial statements are the bellwether which provide an unbiased view of market direction.
At Better Way Research, we track the revenue of 220 of the largest IT services vendors. These 220 vendors represent all market participants with greater than $500 million in annual revenue, and in aggregate represent a market size of greater than $1 trillion.
Methodologically there are three important factors to highlight:
At Better Way Research, we track the revenue of 220 of the largest IT services vendors. These 220 vendors represent all market participants with greater than $500 million in annual revenue, and in aggregate represent a market size of greater than $1 trillion.
Methodologically there are three important factors to highlight:
- Constant currency analysis is hard - Exchange rate fluctuations are irrelevant to stakeholders who only want to know how market growth is trending in relevant dimensions (i.e. market, geographies, industries). The SmartView generates a unique blended exchange rate for each vendor based upon how much revenue it generates in 28 global currencies. When aggregated this data provides the clearest picture of constant currency growth for the market.
- There is too much double counting - Vendors will often highlight non-GAAP revenue estimates like "$1 billion of GenAI revenue" or "$500 million of cybersecurity work" on earnings calls to appease wall street analysts. However, what's often not mentioned is that these revenue numbers are not MECE (mutually exclusive collectively exhaustive) with each other, often resulting in revenue double counting. The SmartView always aligns directly with the income statement, ensuring that if a dollar of revenue is allocated to a certain market, it can only be counted once.
- From Blackboxes to customizable TAMs - Some market research products sell markets sizes with little information about what the sub-components represent, sometimes referred to as a "Blackbox". The SmartView was built based upon the idea that each vendor's view of the market is different and unique. Vendors need a tool to select all of the competitors they deem as "addressable" so that the market numbers used for benchmarking and planning represent an accurate view of their competitive environment.
