IT Services Boom

Increased velocity and higher valuations seen in the IT Services space have driven averages up to 1.4x Sales in developed markets. At the end of 2014, Atos acquired Xerox's IT outsourcing unit for $1 billion, paying 0.7x Revenue. More recently, Capgemini added New Jersey-based IGATE for a breathtaking $4 billion, paying 3.5x revenue. IGATE's strong US presence drove interest for Capgemini who has been looking to diversify outside the European Economy.

The IT services space is heavily consolidating due to resource constraints in developing countries, highly specialized services becoming much more valuable and developing economies reaching scale and size to begin looking upmarket.

For more information please visit http://www.wfs.com/market-spotlight-series/it-services

Posted by , Associate on 18 May 2015
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