BPO

March 2018

Sectorwatch

Cloud adoption by large enterprises continues to drive demand for service providers managing a successful migration along with roadmap and strategy that lead to additional outsourcing opportunities. Additionally, new technologies are increasingly creating a highly fragmented services market, leaving the M&A market prime for strategic acquisitions.

 

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 is less than the average of the last 3 years gross profit margins, indicating customer pricing power
  • Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation