The economic slowdown affected many industries including retail, airline, food and traveling. Businesses and individuals are looking for ways to cut corners to save instead of spend. One industry that has been nearly immune from the recession is information technology (IT) consulting services. This article discusses the factors that contribute to their success despite the global economic turmoil.
Providing Technology Services
IT consulting service companies, which are also known as IT service providers, provide different services related to technologies. These services may include implementation of software, integration of software and hardware, maintenance of the infrastructure, and provide helpdesk support for general computer related issues.
The Need for IT Consulting Companies
Governments and private organizations depend on technologies to keep their businesses flowing. It is usually expensive to implement and maintain these technologies. It would require a league of staffs that specialize in different fields including software, hardware, and systems integration. Keeping the IT staff force in-house is also difficult because of the high turnover rates. Therefore, governments and businesses outsource their technologies to IT service providers to help reduce technology expenses.
IT Outsourcing Creates Opportunities
There has been a growing trend in IT outsourcing. Many experts predict that this trend will continue even after the recession ends. As IT outsourcing increases, new IT service providers will emerge. Many IT providers are seeing this growing demand as an opportunity to become the next big thing.
Multi-Million Dollar Contracts
The IT consulting service industry is a multi-billion dollar business. Government and large private organizations provide service contracts that are worth in the hundreds of millions of dollars. These contracts typically guarantee several years of continued services. After the contract expires, they become available in the market for other IT service providers to bid. This contract cycle creates endless opportunities for IT service providers to add more clients to their portfolio.
The Acquisition and the Verdict
Successful IT consulting service companies are often acquired for billions of dollars. For instance, Dell acquired Perot Systems for $3.9 billion. In the same month, Xerox acquired Affiliated Computer Services for $6.4 billion. Many investors who invested in IT service providers have already made millions from the deals. Are you ready to invest?
Providing Technology Services
IT consulting service companies, which are also known as IT service providers, provide different services related to technologies. These services may include implementation of software, integration of software and hardware, maintenance of the infrastructure, and provide helpdesk support for general computer related issues.
The Need for IT Consulting Companies
Governments and private organizations depend on technologies to keep their businesses flowing. It is usually expensive to implement and maintain these technologies. It would require a league of staffs that specialize in different fields including software, hardware, and systems integration. Keeping the IT staff force in-house is also difficult because of the high turnover rates. Therefore, governments and businesses outsource their technologies to IT service providers to help reduce technology expenses.
IT Outsourcing Creates Opportunities
There has been a growing trend in IT outsourcing. Many experts predict that this trend will continue even after the recession ends. As IT outsourcing increases, new IT service providers will emerge. Many IT providers are seeing this growing demand as an opportunity to become the next big thing.
Multi-Million Dollar Contracts
The IT consulting service industry is a multi-billion dollar business. Government and large private organizations provide service contracts that are worth in the hundreds of millions of dollars. These contracts typically guarantee several years of continued services. After the contract expires, they become available in the market for other IT service providers to bid. This contract cycle creates endless opportunities for IT service providers to add more clients to their portfolio.
The Acquisition and the Verdict
Successful IT consulting service companies are often acquired for billions of dollars. For instance, Dell acquired Perot Systems for $3.9 billion. In the same month, Xerox acquired Affiliated Computer Services for $6.4 billion. Many investors who invested in IT service providers have already made millions from the deals. Are you ready to invest?