Digital Services sector update:
Digital transformation has become a top strategic priority for senior business leaders, driven by the pandemic and now considered a fundamental practice. Strong M&A demand in cloud consulting, particularly for ServiceNow and Salesforce implementation. MSPs are becoming crucial to the long-term IT strategies of large enterprises. A market poll showed existing MSP providers are highly active, with over a quarter seeking to make an add-on acquisition in the next 24-36 months. Market leaders are consolidating to further cement their market share, and investors are taking notice. Social commerce is a huge digital services opportunity, with global value expected to reach $2.9tn in 2026, up from $992bn today. In 2019, about half of US Millennials and Gen Z consumers shopped on social media, making it a key focus for brands. Consolidators are looking to acquire specific capabilities in the social platform space to meet the ever-changing demands of their clients as well as the increasing share of ad wallets going there.
