1、1|12 IT&Business Services M&A Overview 1H 2022CIOs continued reliance on IT Services drives momentum in sectorservice firms,while critical strategy work,whichrequireshigh-endskillsunobtainablebymanyenterprises,will increasingly be fulfilled by externalconsultants.UnabatedgrowthWhile central banks ar

2、ound the world are focusing onfighting inflation,the current levels of volatility are notexpected to deter CIOs investment plans for 2022 especially when it comes to spending on IT&BusinessServices.In fact,in its July 2022 forecast,Gartner projected thatworldwide IT spending would reach$4.5 trillion

3、 in2022 an increase of 3%from 2021.For many enterprises,price increases and deliveryuncertainty,exacerbated by armed conflict in Ukraine,have accelerated the transition from IT ownership toIT service sourcing.This led cloud spending to grow18.4%in 2021,and it is expected to grow 22.1%in2022.Secondly

4、,the IT skills shortage means CIOs are forcedto take action to balance increased IT demand anddwindling IT staffing levels.For technology providers,this includes increasing prices on software and servicestoallowforcompetitivesalariesandimproveemployee acquisition and retention.This is driving an inc

5、rease in spending in software andservices,with worldwide software spending expectedto grow 9.6%to$807 billion in 2022 and globalspending on IT services,specifically,forecast to reach$1.3 trillion.In parallel,CIOs are using more IT services to helpmanage the lack of skilled IT staff.Tasks that requir

6、elower skill sets tend to be outsourced to managed.drivingM&Ain thesectorAt present,IT Services firms garnering M&A interestare tech consultancies and system integrators withexpertise in supply chain modernisation,cybersecurityintegration,and ESG data consulting.Supply chains:Major peaks and troughs