IT Services : The digital transformation steams ahead

January 25, 2023 – Stifel IRIS is pleased to release “IT Services: The digital transformation steams ahead”, a white paper that explores market drivers and M&A activity in the IT services industry.

The digital transformation is still top of mind for corporations. Business model transformation, process automation, digital experience, supply chain resilience and, more recently, sustainable operations, require an increasing amount of IT work as these projects become mainstream. Valuation multiples for listed IT Services firms look to have reached a trough, and European players in this market are more affordable compared to their US and Indian peers since 2015. In parallel, there is a slowdown in M&A deals, but private equity funds remain very active, while some players refocus themselves on their most growing and profitable businesses through spinoffs.

Stifel IRIS’s latest white paper reviews business opportunities in the IT Services sector, as well as challenges for the industry. Read this report to learn about the key trends that will shape the IT services market, and why we consider the current low valuation multiples in the IT services industry to provide further opportunities for M&A.