The information technology services industry is expected to continue growing as organizations adopt software and cloud-computing to digitize their businesses to improve their operational efficiency. Consequently, we think the shares of leading IT services companies Accenture plc (NYSE:ACN) and Wipro (NYSE:WIT) could now be good additions to one’s portfolio.Because the COVID-19 pandemic forced people to stay at home and accelerated businesses’ digital transformation, information technology services companies have registered immense growth. Because organizations are now prioritizing digitization to ensure that their businesses are efficient and prepared for the next 100-year disruptive event, IT services companies continue to benefit from a surge in demand.
According to a latest forecast by Gartner (NYSE:IT), Inc., global IT spending is expected to amount to $4.1 trillion in 2021, representing an 8.4% increase from 2020. Furthermore, the ascendance of the hybrid workforce structure is expected to drive the demand for Everything as a Service (XaaS), which should benefit IT services companies significantly. The global IT services market size is expected to grow at an 8% CAGR from 2020-2025. The increased focus on business agility and scalability, and the rising adoption of cloud platforms, should keep attracting investments in this space.
Because demand for the services provided by Accenture plc (ACN) and Wipro Limited (WIT) is expected to continue growing, we believe these companies hold solid growth prospects.