Skip to Content
Stock Strategist Industry Reports

Evolving IT Services Market Warrants Attention

Consulting offers the most advantage in this huge, fragmented market.

Mentioned: , , , , , , ,

From service lines and geographies to consolidation, new technologies, and commodification, the information technology services industry is dynamic and offers both opportunities and risk for major global vendors.  Accenture (ACN) remains the best-positioned IT services company, given its breadth and depth across all market segments, and we believe it has a wide economic moat. Narrow-moat  Cognizant Technology Solutions (CTSH) also has a strong competitive position.

IT Services Market Is Large and Fragmented
Global IT services spending is enormous, estimated at $922 billion in 2013. Over the next five years, we expect the total market to grow at a compound annual rate of 5%. We separate the IT services market into six key areas: consulting, systems integration, IT outsourcing, business process outsourcing, software support, and hardware support. In this article, we focus on the first four categories.

Andrew Lange does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.