An Examination of Merger and Acquisition Activity in the Business and IT Services Industry

This IDC Market Perspective provides an overview of M&A transactions within the services industry from 2019 to 2023. "While the shoes to fill are large, the pockets of services providers are quick to measure." Greenfield expansions have been a time-tested means of navigating evolving business landscapes, providing proven capabilities to enhance solution portfolios and geographic reach. Trends within acquisition activity indicate the key capabilities sought by vendors and region-specific nuances on focus areas."Services vendors have long addressed enterprise demand for technology services by acquiring companies for access to expertise, with recent activity dominated by building capabilities on the cloud," said Sreenivas Duvvuri Venkata, research analyst, Enterprise Services, IDC. "Vendors will continue to remain nimble, understanding client needs across AI, analytics, and automation and leveraging macroeconomic tailwinds to drive a fresh wave of acquisitions."