Market review
Digitalization as a megatrend is still growing as it is becoming a more critical element in business and society. Digitalization requires vast resources to build, integrate and maintain new applications - and new technologies being developed with increasing speed - which is why the long-term demand fundamentals of IT consulting companies are strong.
IT service companies offer a good opportunity for the investor to invest in the digitalization trend with a more limited risk profile.
Digital has grown from a supportive function to a driving force of business transformation. Modern businesses today evolve and change through it. This development means companies need to actively make sure that the organisation, its people, processes and stakeholders are part of the change. Today, digital has a key role in business to drive business innovation, growth and efficiency, which verifies its role as part of business in the future as well.
Digital transformation requires knowledge, competencies and resources that tend to be outside the core areas of businesses. Therefore the need for IT consultancies stay strong, as they are able to support and enable the transformation with the required skills and knowledge. Even though companies have started to build these competencies for themselves as well, the growing need for digital transformation in all industries keeps the demand for external support strong.