Service Revenue Trends - A Joint Research Paper From TSIA And CSDP

Since 2005, TSIA has been gathering detailed information related to the revenue mix trends of product companies. This analysis began with the creation of the TSIA Service 50, an index of the largest technology solution providers in the world. Every quarter, TSIA reviews the public financial data of these 50 companies and reports on key trends related to service revenues and service margins.

However, the TSIA analysis of service revenue trends has gone significantly beyond analyzing the data available in the public domain. Through benchmarking and industry surveys, TSIA has collected extensive data on the specific revenue mix of product companies. How much revenue comes from support services vs. professional services? How much revenue is coming from education services? What is the range of operating margins being generated by professional services organizations? TSIA can answer these questions and many more related to service-line economics.

This DataView will provide four views that TSIA has developed over the past five years to communicate the key trends in services revenues and profits. These frameworks can be used by service organizations to drive key strategic conversations, including:

• The importance of service revenues and margins to overall company revenue growth and profitability.
• The growth of service revenues in maturing technology markets.
• The shift in service mix required for long-term market success.