With rapid digital transformation and an increasing dependence on advanced technology solutions, the demand for information technology services is expected to grow. As such, prominent companies in this space Accenture (ACN) and Globant (GLOB) should benefit from the industry tailwinds. But which of these stocks is a better buy now? Read more to find out.Based in Dublin, Ireland, Accenture plc (NYSE:ACN) is a professional services company that provides strategy and consulting, interactive technology and operations, and outsourcing services worldwide. In comparison, Globant S.A. (GLOB), which is headquartered in Luxembourg, operates as a technology services company worldwide. It offers transformational programs, ROI and cost efficiency, new revenue streams, and E-mission.
The information technology services market is expected to grow significantly in the coming months owing to increasing demand from almost every industry as part of widespread digital transformation efforts. Furthermore, because governments worldwide are reinstating lockdown and social distancing measures to limit the spread of the highly transmissible COVID-19 Delta variant, the demand for information technology services is expected to rise further in the near term. According to a Gartner , Inc. (NYSE:IT) report, worldwide IT services spending is expected to reach $1.2 trillion in 2021, representing a 9.8% increase from 2020. So, both ACN and GLOB should benefit from the growing market.
ACN has gained 22.3% year-to-date, while GLOB returned 15.5%. Also, ACN’s 33% gains over the past nine months are higher than GLOB’s 24.2% returns. ACN is the clear winner with 24% gains versus GLOB’s 12.8% in terms of the past six months’ performance.