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February 2018
BPO
Sectorwatch
As enterprises continue to adopt cloud migration, demand has steadily increased for service providers managing a successful migration along with roadmap and strategy that lead to additional outsourcing opportunities. As new technologies gain adoption, the services landscape will become increasingly fragmented and ripe for acquisition as larger players look to innovations created by the smaller players.
Industry Trends:
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
- Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
- Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation