A greater reliance on advanced technologies and cloud-based software, and the growing need for business automation have been driving the growth of the Information Technology (IT) service industry. This bodes well for fundamentally sound IT services stocks International Business Machines (NYSE:IBM), Infosys (NYSE:INFY), Cognizant Technology Solutions (NASDAQ:CTSH), and CDW (NASDAQ:CDW). Let’s discuss.With the advent of big data technology and large-volume-data generation, businesses and enterprises have become increasingly dependent on the IT services industry to optimize their business processes. Moreover, because the COVID-19 pandemic has accelerated digital transformation, enterprises are increasing their IT spending significantly. According to the latest Gartner (NYSE:IT) Worldwide IT spending forecast report, global IT spending is projected to total $4.4 trillion in 2022, rising 5.3% from 2021.
The global IT services market is expected to reach $1.12 trillion by 2026, registering an 8% CAGR. Furthermore, the growing popularity of cloud-based services and the necessity of automating business processes are expected to propel the demand for services offered by IT services companies.
Therefore, we think it could be wise to bet on quality IT services stocks International Business Machines Corporation ( IBM ), Infosys Limited (INFY), Cognizant Technology Solutions Corporation (CTSH), and CDW Corporation (CDW). They are expected to deliver substantial returns in the near term based on their consistent innovations, diverse product portfolios, and strong sales growth.