Yes, I too take note of what ValueSnatcher and Psychiatrist have to say on various companies, they always provide much appreciated insights.
I've suffered from investing in IT consulting companies over the last couple of years and have come to the realisation that the IT industry has changed structurally. There may also be a cyclical element, particularly around Government spending on IT.
The fact that SMX has acquired two businesses recently gives a strong indication that the old model of IT consulting (systems integration / solutions development) is being left behind. The growth IT services are in the areas of business cloud, infrastructure management, business analytics and digital automation.
I know little about RXP, although I note they acquired Methodgroup, which is a company strong in business analysis. DWS (which I own) is moving resources into the new growth areas, albeit a little slowly.
As always, industry dynamics change, and those companies that prove nimble enough will prosper. It appears that there are many small and niche private IT companies willing to be acquired, and RXP are methodically taking them out. Be interesting to see their progress.
RXP Price at posting:
67.5¢ Sentiment: None Disclosure: Not Held
