ServiceNow Acknowledged as a Key HR Software Provider by APPS RUN THE WORLD in the HCM Top 500 Market Report

ServiceNow Strengths, Domain Expertise, and Key Differentiators

ServiceNow is a software company renowned for its cloud-based, AI-powered platform, which specializes in automating various management workflows within enterprises. Its core expertise lies in IT service management, IT operations management, and IT business management.

As of December 31, 2023, ServiceNow reported contract revenue totaling $8.60 billion, marking a significant 24% year-over-year growth and 23% in constant currency. The company boasts a customer base of 1,897, including numerous clients with annual contract values exceeding $1 million, representing a robust 15% year-over-year growth. During its first full quarter post the Now Assist launch, ServiceNow witnessed its largest net new Annual Contract Value (ACV) contribution for a first-quarter period, attributable to its Now Assist product family release. Furthermore, ServiceNow made substantial strides in its generative AI endeavors, expanding its Now Assist portfolio with notable additions such as Now Assist in Virtual Agent, flow generation, and Now Assist for Field Service Management.

In May 2023, ServiceNow unveiled ServiceNow.org, an initiative dedicated to digitally transforming non-profit organizations, empowering them to achieve greater impact. Leveraging the Now Platform, ServiceNow.org streamlines operations, enhances user experiences, and optimizes resource management to further non-profits' missions. This launch coincides with a critical juncture for the non-profit sector, where 54% of organizations are prioritizing operational efficiencies amid an uncertain macro environment. Digital transformation emerges as an essential imperative for non-profits tasked with doing more with limited resources. The right technology not only enhances efficiency but also enables these organizations to navigate dynamic operating environments effectively.

In the same period, ServiceNow introduced ServiceNow Cloud Observability, an integrated end-to-end observability solution for cloud applications. Powered by Lightstep, a leader in observability acquired by ServiceNow in May 2021, ServiceNow Cloud Observability aids organizations in managing the scale and complexity of cloud and cloud-native infrastructure. It facilitates complete visibility across the enterprise, breaking down siloes and enabling improved security, workflows, collaboration, customer and employee experiences, and ROI. By leveraging ServiceNow Cloud Observability, organizations can effortlessly identify and address issues, minimizing outages and enhancing revenue protection and customer satisfaction.

ServiceNow Recent Developments

In September 2023, ServiceNow unveiled a significant expansion of its Now Platform with the introduction of the Now Assist suite of solutions. Featured in the Now Platform Vancouver release, Now Assist encompasses offerings tailored for IT Service Management, Customer Service Management, HR Service Delivery, and Creator, seamlessly integrating the capabilities of generative AI across all workflows on the Now Platform. This integration aims to enhance productivity, elevate user experiences, and foster greater agility for ServiceNow customers. To support the innovative features introduced by Now Assist, ServiceNow has developed a domain-specific ServiceNow Large Language Model (Now LLM), specifically engineered for enterprise application and meticulously optimized for both productivity and data privacy considerations.

Now Assist introduces a range of generative AI functionalities, including case, incident, and agent chat summarization, virtual agent assistance, and advanced search capabilities. These features are designed to cater to diverse scenarios and functions, empowering every user persona—from employees and agents to developers—to leverage the capabilities of generative AI effectively. By adopting this foundational approach, organizations can seamlessly integrate the power of generative AI into any department, facilitating swift expansion across various business domains with ease.

In March 2023, ServiceNow unveiled a significant platform expansion with the introduction of the Now Platform Utah release. Utah is meticulously crafted to assist organizations in fortifying their businesses for the future and achieving outcomes more rapidly amid persistent economic uncertainties. This latest iteration of the intelligent, comprehensive platform for digital transformation incorporates AI-powered process mining with robotic process automation (RPA) capabilities, along with supplementary search enhancements, expanded Workforce Optimization features, and Health and Safety Incident Management functionalities. These additions are meticulously designed to elevate automation levels, streamline user experiences, and foster enhanced organizational agility.

In March 2022, ServiceNow launched its Now Platform San Diego release. The latest version of the Now Platform is designed to help organizations address the most pressing challenges facing every industry, in every region, and transform businesses for a new economy. The release is broken down into three sections: the Next Experience, the Automation Engine, and industry solutions.

ServiceNow Customers in ARTW Customer Database

Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying ServiceNow applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of ServiceNow and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified ServiceNow Now Platform, ServiceNow IT Service Management, ServiceNow IT Business Management, ServiceNow DevOps, ServiceNow IT Asset Management, ServiceNow Security Operations, ServiceNow Governance, Risk and Compliance, ServiceNow HR Service Delivery, ServiceNow Safe Workplace Suite of applications, ServiceNow Workplace Service Delivery, ServiceNow Legal Service Delivery, ServiceNow Customer Service Management, ServiceNow Field Service Management, ServiceNow Connected Operations, ServiceNow App Engine, ServiceNow IntegrationHub customers.

ServiceNow Key Cloud and HCM Applications

ServiceNow Now Platform, ServiceNow IT Service Management, ServiceNow IT Business Management, ServiceNow DevOps, ServiceNow IT Asset Management, ServiceNow Security Operations, ServiceNow Governance, Risk and Compliance, ServiceNow HR Service Delivery, ServiceNow Safe Workplace Suite of applications, ServiceNow Workplace Service Delivery, ServiceNow Legal Service Delivery, ServiceNow Customer Service Management, ServiceNow Field Service Management, ServiceNow Connected Operations, ServiceNow App Engine, ServiceNow IntegrationHub

ServiceNow HCM and Cloud HCM Applications Revenues, $M:

Type/Year	2022	2023	YoY Growth, %
Total Revenues, $M	Subscribe	Subscribe	Subscribe
HCM Applications Revenues, $M	Subscribe	Subscribe	Subscribe

* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.

ServiceNow Revenue Breakdown by Type:

ServiceNow HCM Applications Revenues By Sub-Functional Markets, $M:

	Split by Sub-Functional Markets	% of HCM Revenue in the HR Segment	2023 HCM Revenues, By HR Segment, $M
Core HR and Performance Management	Benefits Administration	Subscribe	Subscribe
	Compliance	Subscribe	Subscribe
	Core HR and Personnel Management	Subscribe	Subscribe
	Payroll	Subscribe	Subscribe
	Pension Administration	Subscribe	Subscribe
	Compensation Management	Subscribe	Subscribe
	Learning and Development	Subscribe	Subscribe
	Performance and Goal Management	Subscribe	Subscribe
	Succession and Leadership Planning	Subscribe	Subscribe
Talent Acquisition	Applicant Tracking Systems	Subscribe	Subscribe
	Contingent Labor Management	Subscribe	Subscribe
	Candidate Relationship Management	Subscribe	Subscribe
	Onboarding	Subscribe	Subscribe
	Recruiting	Subscribe	Subscribe
	Sourcing	Subscribe	Subscribe
Workforce Management	Absence and Leave Management	Subscribe	Subscribe
	Fatigue Management	Subscribe	Subscribe
	Task Management	Subscribe	Subscribe
	Time and Attendance	Subscribe	Subscribe
	Time Clock (Hardware)	Subscribe	Subscribe
	Workforce Scheduling	Subscribe	Subscribe
	Workforce Analytics	Subscribe	Subscribe

ServiceNow HCM Applications Revenues By Verticals, $M:

Split by Verticals	% of Total Revenues	2023 HCM Apps Revenues, By Verticals, $M
Aerospace and Defense	Subscribe	Subscribe
Automotive	Subscribe	Subscribe
Banking and Financial Services	Subscribe	Subscribe
Communication	Subscribe	Subscribe
Construction and Real Estate	Subscribe	Subscribe
Consumer Packaged Goods	Subscribe	Subscribe
Distribution	Subscribe	Subscribe
Education	Subscribe	Subscribe
Government	Subscribe	Subscribe
Healthcare	Subscribe	Subscribe
Insurance	Subscribe	Subscribe
Leisure and Hospitality	Subscribe	Subscribe
Life Sciences	Subscribe	Subscribe
Manufacturing	Subscribe	Subscribe
Media	Subscribe	Subscribe
Non Profit	Subscribe	Subscribe
Oil, Gas and Chemicals	Subscribe	Subscribe
Professional Services	Subscribe	Subscribe
Retail	Subscribe	Subscribe
Transportation	Subscribe	Subscribe
Utilites	Subscribe	Subscribe
Total	Subscribe	Subscribe

ServiceNow Total and HCM Applications Revenues by Region:

Region	% of Total Revenues	2023 Total Revenues, $M	2023 HCM Applications Revenues, $M
Americas	Subscribe	Subscribe	Subscribe
EMEA	Subscribe	Subscribe	Subscribe
APAC	Subscribe	Subscribe	Subscribe
Total	Subscribe	Subscribe	Subscribe

ServiceNow Direct vs Indirect sales

Region	Direct Sales	Indirect Sales	Total
Type %	Subscribe	Subscribe	Subscribe
Revenues, $M	Subscribe	Subscribe	Subscribe

ServiceNow Customers - Breakdown by Geo, Size, Vertical and Product

List of Verified ServiceNow Customers

No. of ServiceNow Customers: 7700

No. of ServiceNow HCM Applications Customers: x

No. of ServiceNow Cloud HCM Customers: 7700

No. of ServiceNow Cloud HCM Subscribers: 22 million

As of December 2022, ServiceNow boasted a robust client base of around 7,700 enterprise customers spanning diverse industries. These industries encompass government, financial services, healthcare, manufacturing, IT services, technology, oil and gas, telecommunications, education, and consumer products. Notably, the contribution of revenues from sales to government clients has exhibited a steady increase over time.

Among its esteemed clientele are leading organizations such as Zoom Video Communications, 7-Eleven, Swiss Re, University of California, Berkeley, DNB ASA, Chevron, AstraZeneca, Bombardier, BP, Thomson Reuters, Visa, AbbVie, Daiwa Securities, Diageo, Elskabunk, Enbridge, General Motors, Honda of America, Forest City Enterprises, Red Hat, City of Copenhagen, Deloitte, Ricoh, Acciona, Addleshaw Goddard, AGL, Bosch Siemens, Bournemouth University, Brit Insurance, Broward Health, Carlson, Centrica, CERN, Discount Tire, Echo Entertainment, Emory University, Energias de Portugal, Enterprise Rent-A-Car, Equinix, FermiLabs, FirstCare, Guardian Life, Harrods, Informa Plc., Jefferson County, JMC Steel Group, Juniper Networks, Kimberly-Clark Corporation, L.L. Bean, Land O'Lakes, Lawrence Berkeley National Laboratory, Lemminkäinen Oyj, Liberty University, Loyola Marymount University, Morrison & Foerster LLP, NetHope, NHS - London Programme for IT, Norwegian Geotechnical Institute, Norwegian Olympic and Paralympics Committee and Confederation of Sports (NIF), OhioHealth, Omnicare, Orrick, Herrington & Sutcliffe, Pacific Life, Perrigo, PostMedia Network, Progress Energy, Publicis Groupe, REI, Santander Consumer Media, Sephora, Severn Trent Water Ltd., SkyIQ, Sony Pictures Entertainment, Staples, Synaptics, The University of Chicago, University of Minnesota, University of San Francisco, Wellcome Trust, World Wide Technology, Inc., Yale University, and many others.

ServiceNow Market Opportunities, M&A and Geo Expansions

In January 2024, ServiceNow forged a strategic alliance with Visa spanning five years, with the aim of revolutionizing payment services. The initial phase of this collaboration introduces ServiceNow Disputes Management, Built with Visa—an integrated dispute resolution solution tailored specifically for issuers. This innovative offering seamlessly combines ServiceNow’s AI-first platform and its Financial Services Operations solution with Visa’s substantial technology investments. Annually, Visa plays a pivotal role in preventing $30 billion in fraud for consumers and small businesses by leveraging advanced technologies such as tokenization and AI across the entire payments ecosystem, including dispute management.

ServiceNow Disputes Management, Built with Visa will unify the entire dispute management process—from the initial indication of a questionable charge to early resolution, investigation, and final resolution. It encompasses a single, streamlined interface for resolving disputes, facilitating high-quality engagements with cardholders for employees. Additionally, it provides dashboards, automation features, alerts, and comprehensive transaction audit capabilities.

In May 2022, ServiceNow introduced Procurement Service Management (PSM), designed to revolutionize procurement operations throughout enterprises while expediting delivery times for simpler sourcing tasks through digitization and self-service functionalities. PSM empowers finance departments to oversee the entire procurement lifecycle via a centralized system of action, offering comprehensive visibility into all processes and seamlessly complementing existing systems of record. This enables organizations to continuously enhance source-to-pay processes by leveraging real-time benchmarking and reporting to mitigate SLA risks, bolster sourcing activities, and mitigate maverick procurement behaviors by swiftly adapting to evolving business conditions. Furthermore, PSM addresses subpar procurement experiences through pattern matching and trend analysis, ensuring optimized procurement practices across the board.

ServiceNow Risks and Challenges

Sales outside of North America represented 35% and 36% of ServiceNow's total revenues for the years ended December 2022 and 2021, respectively. The company's future growth trajectory hinges on its capability to further expand its international sales as a proportion of its overall revenue. However, penetrating international markets necessitates substantial investments and managerial focus, while also entailing exposure to distinct regulatory, political, and economic risks compared to its domestic operations in the U.S.

ServiceNow Ecosystem, Partners, Resellers and SI

In February 2024, ServiceNow and Genpact expanded their partnership to provide Source-to-Pay applications spanning finance and supply chain operations. Leveraging ServiceNow's AI capabilities, the Genpact Source-to-Pay offering aims to enhance team productivity, streamline user experiences, and improve cost efficiency. Esteemed organizations such as Dropbox have already experienced the benefits of this solution, revolutionizing their procurement, sourcing, and case management operations. The Source-to-Pay solution facilitates a seamless purchasing and case management process across various work teams, empowering procurement to concentrate on strategic priorities.

In June 2022, ServiceNow further solidified its footprint in the Central and Eastern Europe (CEE) region by establishing a new office in Poland and appointing leadership dedicated to the area. Strategically located in Warsaw, the office will act as a focal point for specialized expertise across ServiceNow's extensive CEE territory, encompassing markets such as the Czech Republic, Slovakia, Romania, Hungary, and Greece.

ServiceNow Cloud Platform (PaaS) and Infrastructure (IaaS) Details

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• ServiceNow Public Cloud and Infrastructure (IaaS)
• ServiceNow Platform (PaaS)
• ServiceNow Application Delivery
• ServiceNow Private Cloud and Data Centers

Research Methodology

Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.

Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).

For additional information on our methodologies, here's the link:

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