Image Source: Ashwin Kumar
Structure of the IT Services Industry
The IT services industry is composed of offshore entities that provide outsourced IT infrastructure at a low cost and contractors that provide a variety of services to US government agencies. Success is often dependent on the talent of a firm’s technology professionals and the effective execution of service offerings. Most constituents generate significant cash flow and high returns on investment due to minimal capital requirements. Still, competition remains fierce, and recent government actions to stimulate rivalry and reduce the number of sole source awards has weighed on some participants. We’re neutral on the group.
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