IT Services Quarterly Earnings Call Synopsis – Q1 2019
We are pleased to present our review and synopsis of results and earnings call commentary for Q1 2019. This summary includes the most recent financial results for key publicly traded companies in the IT Services sector (mix of buyers in Managed Services, Cloud Services, IT Services, and IT Consulting, among other service offerings in the technology market) for the period January – March 2019.
- Booming global economy, and ability of corporate and private buyers to make substantial investments to increase scale. Confirming this indicator for M&A activity, Globant’s CFO, Juan Urthiague, explained that “Business momentum combined with a record level of net additions position us on the right path to achieve our full year targets.”
- Talent acquisition continues to trend upward as a factor driving M&A strategies, especially in the thriving technology and tech-enabled services sectors. For example, Capgemini noted that the tech personnel, expertise, and portfolio of services was a driving force behind their February purchase of Leidos Cyber, a commercial cybersecurity developer.
- Digital Strategy triggers M&A activity. For example, in a recent 7MA deal, SADA Systems was embroiled with the demanding initiatives of the market for their Google and Microsoft platforms. As a result, SADA Systems pursued a new Digital Strategy that consolidated business operations through their March transaction with Core BTS, consequently selling their Microsoft business unit and advancing operations with their Google business unit.
Technology Trends to Watch: