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Nov 2016 - Industry Development and Models - Doc # US40754216

2015 Profitability in the Worldwide Services Market

Author: Chad Huston
Research Manager, Worldwide Services

Abstract

This IDC study analyzes profitability trends in the services market as a whole and then provides quantitative metrics and commentary for profitability by type of service, geography, and vertical. This information is geared toward readers who wish to find benchmarks to measure their own profitability as compared with the market average. However, any person who seeks to gain a better understanding of both how profitability is differently based on the type of service and the factors that drive the varying levels of profitability will find this information valuable.

"IDC predicted in last year's profitability study that the increase in profitability seen in the services market for 2010–2014 was unsustainable and likely to change course at some point in the near future. The profitability numbers in 2015 were a fulfilment of this prediction as profitability growth declined for the first time since 2009," said Chad Huston, research manager, Global Services Markets and Trends. "Many vendors have touted increased automation as the next lever they can pull to reverse course back to increasing levels of profitability; however, the fruits of those efforts are unlikely to show up in the next 12–18 months."

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