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April 2018
IT Consulting
Sectorwatch
2018 is projected to be a good year for players in the IT Consulting sector because it is expected to grow at a rate of 5%. This optimism is as a result of robust customer demand and the uptake of emerging products and services. The global IT spending is expected to top $4.8 trillion in 2018 with the US responsible for approximately $1.5 trillion of the market, according to IDC.
Industry Trends:
- Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
- 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
