- TLS
- SOUN
- GDYN
The Zacks Computers – IT Services industry is benefiting from accelerating enterprise adoption of artificial intelligence (AI), particularly generative and agentic AI. Enterprises are increasingly moving AI initiatives beyond pilots into production and embedding AI platforms within core operations. Growing AI adoption is also accelerating application, data and cloud modernization spending. Enterprises increasingly recognize that legacy applications, fragmented data environments and older infrastructure must be modernized before AI can be deployed effectively at scale. This is boosting demand for data engineering, application modernization, cloud migration and platform-engineering services. The industry is also gaining from rising demand for cybersecurity, digital identity, secure networking and regulatory-<a href="https://myappsplus.com/backbone-raises-e4m-for-automated-food-quality-and-compliance/” title=”Backbone raises €4M for automated food quality and compliance”>compliance solutions. Industry participants, including SoundHound AI SOUN, Grid Dynamics GDYN and Telos TLS, are benefiting from these trends.
The Zacks Computers – IT Services industry comprises companies that provide consultancy, communications software and services, IT management and operations, cloud-based web development platform, customer relationship management, professional information solutions, real estate information and analysis, and outsourcing services. Industry participants cater to a wide array of end markets, including manufacturing, telecommunications, banking, insurance, healthcare, government agencies and public sector institutions. They focus on the cybersecurity business, the cloud computing market, generative AI, IoT and automation to bolster prospects. Offerings from industry participants help improve engagement with customers, launch products and support new business models, with enterprises going for digital transformation.
What’s Shaping the Future of the Computers – IT Services Industry
The Digitization Wave is a Tailwind: Most industry participants are modernizing their traditional legacy-oriented business processes to keep pace with evolving IT services. The aim is to integrate the coordination of emerging technologies, including cloud, IoT, AI and analytics. Increasing Internet penetration in emerging markets, particularly across the Asia Pacific, is another tailwind.
Automation and Productivity Improvement: Enterprises are increasingly deploying AI to automate manual workflows, improve customer service, shorten development cycles and lower infrastructure costs. Higher productivity is also enabling IT service providers to increasingly adopt fixed-price and outcome-based engagements, creating opportunities for stronger operating leverage as AI-enabled delivery models mature.
Improving IT Spending to Aid Prospects: Improving IT spending trends bode well for industry participants. Gartner projects IT spending to increase 14.2% over the 2025 figure of $5.577 trillion to $6.369 trillion in 2026. Spending on IT services is expected to see a 5.3% improvement in 2026.
