Image Source: Franz Conde
Structure of the Business Services Industry
Firms in the business services space primarily focus on management consulting, technology/data-integration services/software and outsourcing solutions. Participants generate high returns on invested capital, but the business services marketplace is very competitive, and firms can often face pressure from off-shore service providers in lower-cost locations (India, Philippines and China). Such competition may inhibit firms’ ability to obtain sufficient pricing for services, and economic conditions may hinder the capability of clients to pay for such services. Still, we’re generally neutral on the group.
We’ve dropped coverage of the Business Services industry.