The IT Services Industry is in an Accelerated Market

The IT Services Industry is in an Accelerated Market

The IT Services Industry is in an Accelerated Market
Shoot The Moon

 
 
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In this episode, we are discussing the fruitful but confusing market conditions in the IT Services sector in the second half of 2020, as the country and world navigate a new normal. While much of the world is struggling with the economic recovery, several sectors are growing as a result of consumer and workforce behavior changes.  At Revenue Rocket we have seen a sharp increase in consolidation amongst IT Service providers and not as distressed assets.  The IT Services sector is in an accelerated market meaning that the industry is growing at the same time that it is consolidating.

The growth is fueled by a number of factors but the largest being the higher propensity for “working from home” environments amongst enterprise employers.  This has a significant impact on ancillary services such as remote access to secure infrastructures held by employers, the added security required to protect those infrastructures and the increased use of technology platforms that enable continuity between remote workers, such as video, chat, and file-sharing services.
The consolidation is an indicator of where the capital markets and private markets see the IT Services sector going. The fact is – this trend is here to stay and the value of IT Services companies is only going to increase as more and more employers and consumers adapt to the new world.  It’s a perfect storm for our clients.

At Revenue Rocket we work closely with buyers and sellers to ensure that accretive transactions are executed on time and on budget with clear and defined objectives.

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