The latest issue of our IT Services Sector Overview, highlighting trends in M&A, financing, IPOs, and capital markets for private and public companies, is now available. 

Over the last three-quarters, IT Services M&A activity has been the strongest sector - due mostly to big-box deals across both strategic and PE acquirers. M&A activity is expected to remain active, and potentially accelerate, as companies look to diversify business models to offer proprietary solutions that differentiate themselves from increasingly commoditized traditional IT services. 

Key themes from this report include:

  • Global demographics, inter-connectivity, and mobility are key factors enabling technology development
  • The long-term market outlook for U.S. IT services is favorable based on increased spending and an expanding addressable market
  • Government IT Services continues to be strong across these sectors: (i) cyber, (ii) intelligence, (iii) C4ISR, and (iv) healthcare IT, and (v) niche software development
  • Enterprises are making a fundamental shift from building IT to consuming IT aided by migration to the cloud, advanced tools for data analytics and business process transformations.