The HfS Market Index: Global IT Services and BPO Market Size and Forecast Primer, Q1 2013

This document sets out HfS Research’s market size and forecasting methodology for global IT and business services market data and provides the first set of global forecast data.

Sizing and forecasting markets isn’t rocket science, but when it happens without visibility into the process it can seem like a mysterious black-box equation. This RapidInsight report takes the sizing and forecasting process out of the black box and delivers an understandable step-by-step methodology.

Truth be told, there are very few ways to size a market. The differences in estimates are the result of variations in the accuracy of the data sample the predictions are based on, the quality of the information gained from the sample, and the way the market is segmented to create representative groups. The method being adopted by HfS Research aims to increase the overall accuracy and quality of market size and forecast data by using multiple methods to size each market and triangulating the result. However, to maintain overall consistency when comparing different markets, it is vital that the primary sizing method remains the same for every market.

Forecasting methodologies, in contrast to sizing methodologies, show much more diversity. This potential for variation emphasizes the importance of using a consistent core methodology so that forecasts are comparable, then supplementing the primary method with others as needed. The HfS Research forecast method is designed to capture business reality and uses a number of methods to predict the future based in part on historic growth.

However, because some markets act outside of the expected pattern predicted by historic performance, HfS takes into consideration new trends that will further drive or inhibit future growth. 

HfS Research is developing market sizing and forecasting data for the IT services and business process services markets.