The U.S. tech industry is one of the most dynamic and innovative in the world. Companies in this space constantly develop new products and services and disrupt traditional industries. Despite facing multiple macroeconomic headwinds over the past two years, the sector is poised to rake in significant profits in the long term.
As a result, the time looks ripe for watching quality tech stocks Cognizant Technology Solutions Corporation (CTSH – Get Rating), Gartner, Inc. (IT – Get Rating), and The Hackett Group, Inc. (HCKT – Get Rating) in the Outsourcing – Tech Services industry, which is rated A (Strong Buy) in our proprietary POWR Ratings system.
IT services are vital for organizations to optimize their information and business processes, staying competitive by embracing advanced technologies in this era of increasing data generation.
The data-driven analysis supported by technology drives strategic decisions across various industries globally. According to Gartner, spending on IT services this year is forecasted to increase 8.8% year-over-year to hit $1.42 trillion.
In addition, IT outsourcing is experiencing a surge driven by the rapid pace of digitalization, the widespread adoption of enterprise applications, and the growing popularity of remote work arrangements.
According to Statista, revenue in the IT outsourcing market is projected to reach $460.10 billion in 2023. Further, the market is expected to grow at an 11.1% CAGR, resulting in a market volume of $777.70 billion by 2028.
Moreover, with the growing demand for tech skills, connectivity, and digitization, the overall outlook of the technology sector remains positive. Investors’ interest in tech stocks is evident from the Technology Select Sector SPDR ETF’s (XLK) 33.3% returns year-to-date.
With that being said, let’s dive deeper into the fundamentals of the above-mentioned stocks in detail…
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