Report: IT & Business Services
Current Trends and Figures

Interestingly, in these turbulent times, M&A activity in the IT Services sector has continued its upward trajectory in 2022, with transaction volumes growing stratospherically,

For many enterprises, inflation, delivery uncertainty, and geopolitical risk have accelerated the transition from IT ownership to IT service sourcing, meaning more spending on managed services and cloud than on on-premise capabilities. In addition, the IT skills shortage has compelled CIOs to focus on competitive salaries for employee acquisition and retention. On the one hand, this has galvanised an increase in software and services costs and spending. On the other, it is making organic growth increasingly difficult for providers of IT services.

Many larger players are buying up services providers in niche areas to fill in gaps in domain expertise and experience specialists, with Accenture leading the charge as the most prolific acquirer. On the sell-side, IT services companies are taking advantage of the attractive M&A market to sell to a trade buyer or partner with a private equity player to defend or establish leadership positions on a global scale.