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January 2018
IT Consulting
Sectorwatch
The past five years leading up to 2017 have seen shifting technological trends toward cloud computing and data analytics which have caused larger operators to acquire smaller companies and develop new products to stay relevant. Shifting technology trends have increased demands for new services and encouraged companies to replace older, more traditional technology. Additionally, strong corporate profit for most of the five-year period and constantly rising investment in computers and software has helped drive industry revenue growth according to IBISWorld.
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
