Deconstructing IT Analyst Firms: Insights for Vendor Portfolio Managers

Authors: Joanne Lustig, Vice President & Lead Analyst; Louise Garnett, Vice President, Outsell Scout Analytics

Vendor portfolio managers across many industries are involved in procuring IT research reports and services, whether for competitive and market insight or to support IT departments’ mission-critical decision-making around technology solutions. IT analyst firms’ offerings represent a key element of many content managers’ portfolios because of their cost and complexity. A deeper understanding of IT analyst firms’ DNA – what makes them tick and what drives the expenses of their business – is a necessary component for strategic assessment of vendors. In this report, we look at the dynamics of IT and telecom analyst firms – what Outsell calls the IT & Telecom Research, Reports & Services (ITTRRS) companies. We examine ITTRRS providers’ business models and provide insights and recommendations for information and vendor portfolio managers who purchase ITTRRS reports and services. This report contains:

- Outsell analysis of four types of ITTRRS firms based on the mix of users and vendors they serve;
- Key benchmarks and metrics for comparing analyst firms, including average revenue dollars per analyst, per sales force, and per staff member;
- Charts showing the mix of employees (analysts, sales, staff) at 15 ITTRRS firms, and a productivity comparison;
- Implications for information managers who are buying these services centrally or advising IT users who purchase such services independently.