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May 2018
IT Consulting
Sectorwatch
The market will see more gravitation to common IT platforms in 2018, in an effort to assist companies to respond faster to market changes, be more productive and make better-informed decisions. According to DXC, common platforms allows companies to shift their customization efforts from infrastructure to applications and the user experience, which is where the action is. Additionally, moving to common platforms frees up talent and working capital for differentiated services.
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
