Why are Private Equity investors becoming more selective about IT Services?
Highlights: PE is not leaving IT Services — it is becoming more selective. Traditional people-based, low-differentiation IT Services businesses are harder to invest in because of AI, client concentration and valuation pressure. PE is increasingly looking for AI, IP, data, cloud, cybersecurity, recurring revenue and strong domain expertise. The key question has changed from “How big can this company become?” to “Why will this company be worth much more in 5 years?” I don’t think the answer is that PE has lost interest in IT Services.The answer is that the traditional IT Services investment thesis has changed. For years, the
