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(I-SoftwareNews.Com, July 23, 2013 )
SAN DIEGO, CA, July 22, 2013 – The Technology Services Industry Association (TSIA)—the leading association for today’s technology services organizations—has issued a new report titled “The Return on Services: A Decade of Evidence from the IT Industry,” authored by Thomas Lah, TSIA executive director; Bo Di Muccio, PhD, TSIA vice president of professional services research; and Jeremy Dalle Tezze, TSIA director of data analytics.
The report extends TSIA's work on the Service 50, developing a larger data set and performing sophisticated scientific analysis of the relationship between services and financial performance among enterprise technology firms. Since 2005, TSIA has been tracking the Service 50 index, providing quarterly analyses of revenue and profit trends of 50 technology organizations from the public record.
The recently released “Return on Services” report reveals key data points from tracking 72 enterprise technology firms over the past decade. Of the 72 companies, 48 reported that services revenue grew faster than product revenue, with product revenue being 50 percent more volatile on average than services revenue. Average service margins more than doubled for all three high-tech industries tracked in the study between 2000 and 2010.
“In a multivendor setting, we modeled how companies generated overall revenues from assets, R&D, and product and service costs,” said TSIA’s Jeremy Dalle Tezze. “Based on the results, several factors are clear: (1) If the median company could allocate an additional $5 million to either products or services, the service investment would have twice the impact on sales. (2) The typical company should aim for a ‘service-to-COG ratio’ between 72 and 88 percent to maximize total company revenues.”
Dalle Tezze joined TSIA in June 2013 to assist the organization in better leveraging its data sources to uncover insights for members, as well as to create a framework for service organizations to develop analytic capabilities. He earned his PhD in international economics and finance at Brandeis University, where he analyzed patent portfolios created by IT corporations, alliances, and joint ventures for his dissertation. His professional background includes positions as a senior analyst, analytics consultant, and assistant professor of business. As a result, he has worked with both small and large corporations on topics such as revenue forecasting, retail chain optimization, web analytics, text mining, and customer analytics.
TSIA members may access the “Return on Services” report on the TSIA website.
About TSIA
The Technology Services Industry Association (TSIA) is the world's leading organization dedicated to advancing the business of technology services. Technology services organizations large and small look to TSIA for world-class business frameworks, best practices based on real-world results, detailed performance benchmarking, exceptional peer networking opportunities, and high-profile certification and awards programs. TSIA corporate members represent the world’s top technology companies as well as scores of innovative small and midsize businesses in four major markets: enterprise IT & telecom, consumer technology, healthcare & healthcare IT, and industrial equipment & technology. TSIA’s editorial blog, Inside Technology Services, is widely recognized by technology service professionals for providing thought leadership and insights into industry trends and best practices. Visit us at www.tsia.com, follow us on Twitter @TSIACommunity, or like us on Facebook.
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TSIA
Suzanne Hite
410-774-5322
suzanne.hite@tsia.com
Source: EmailWire.Com 
Source: EmailWire.com
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