Industry Analysis & Industry Trends
At the height of the recession, slowed business activity led to revenue declines for the IT Consulting industry, as the pool of potential clients was drastically reduced. As the global economy recovers, improving business sentiment and corporate profit will drive industry revenue growth. The increase in M&A activity in other industries over the next five years will help IT consultants; with more consolidations, companies will require assistance in integrating accounting, information storage and other systems related to information technology... purchase to read more
Industry Report - Industry Investment Chapter
The IT Consulting industry has a low level of capital intensity. For every dollar spent on labour in 2016, industry operators are estimated to spend $0.02 on capital. Although some segments within the industry may produce enterprise systems that require expensive hardware, the industry as a whole is a very labour-intensive, service-oriented industry. The high share of revenue devoted to labour costs reflects the service-oriented nature of IT consulting and the high level of education required of personnel. Larger firms in the industry are more labour intensive because they employ significantly more high-skilled staff.
Capital equipment costs in the industry are relatively low because there is minimal equipment required to perform designated tasks... purchase to read more