2021, the year of explosion for PE investments in tech services, says Zinov

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~ In 2021 alone, more than 670 PE-led deals were made with tech services.

~ India In tech services, the PE deals have emerged as a mature market.

Bangalore, India, July 13, 2022 (PRNewswire) – 2021 was an unusual year for private equity investments in the technology service industry. The year is not just a testimony India-Costed technology services are gaining traction from PE investors, but they have seen some of the most expensive technology services deals in the Indian market. Clear display Indian Mature Tech Services Ecosystem Investments in Blackstone and Carlil in Mphasis and Hexaware have been reaffirmed. $ 2.8 billion And $ 3 billion In order.

The high-octane growth in tech services has been fueled by the digital transformation of the corporate epidemic, which has led to increased demand for the site – not just in India But so is the world. However, to take advantage of this trend, service companies are using every other asset as a digital service asset to drive a massive review wave. An in-depth analysis of the “Digital Asset Dispute Dispute” by Zinnov found that only 20% of the investments were in real digital assets. ZinovIn a recent study entitled,Integration of technology services through digital lensesIt focuses on the PE investment landscape by highlighting the key trends in the ecological development of technology services and the potential trends in both investment and supplier potential for both investors and suppliers.

The study includes an in-depth analysis of 670+ PE investment transactions, including purchases, growth capital and additional purchases for the 2021 technology service space. High investment flow in space. On the part of the buyer, some of these criteria include details of PE investors, contract types and amounts, reviews and duplicates. On the asset side, the analysis points include metrics such as revenue, ETA, growth, head count, etc. and quality metrics such as delivery regions, type and quality of services and the reason behind the investment.

Digital Property Masquerade Conundrum

Zinnov’s analysis of digital asset management is one of the most revealing findings. Implications In fact, digital service organizations (at least 60% of workloads are digital) are only a fraction of the target assets included in PE agreements. Only 20% of 670+ target organizations seem to qualify as true digital. The rise in the price of digital service companies compared to their traditional age has led to the phenomenon of many companies trying to ‘sell’ themselves by claiming to be real digital. This has given PE players a more comprehensive framework for evaluating and measuring each property with a digital lens. PE companies that do not have the ability to identify Really digital From those properties Like digital imitation Risk of low-growth companies investing at high prices, affecting both portfolio growth and returns.

As enterprises grow faster than ever, technology providers are increasingly targeting the digital workload of these enterprises. Utilizing the growing IT, ER&D and BPO in enterprise expenditures to enable intelligent products, service providers are becoming more effective targets for investors by transforming themselves into ‘end-to-end’ digital players. The status quo will continue to be at a high level as high-growth investors scramble for this fragmented market.

Key aspects that drive PE investment in tech services

Encouraging PE investment in technology services in the coming years highlights some of the key issues to be addressed. This includes things like mixed engagement models, virtual collaboration, digital talent, digital-first customer experiences and technology innovations – all of which are responsible for bringing digital to investment decisions. In the consumer market, the key trend is to increase technology-focused SPACs and funds. Some of these funds and SPAC are being managed by tech industry veterans with a focus on digital sectors such as Artificial Intelligence, Design and Development, Analysis, etc.

With the economy shrinking, inflation and interest rates soaring, regulatory changes, geopolitical instability, and expected slowdown – prices have fallen sharply since 2021. All technological investments can be under intense scrutiny, which makes value-generating strategies an integral part of the PE playbook.

Vimal MenonPartner, Zinnov“Our extensive knowledge in the field of digital services and our role as business consultants for various PE-led agreements, to create real value, make us firmly believe that personal equity players need to identify real digital assets. With IT integration. In the game BPM and ER and D costs and digital continuity PE investors are increasingly critical of real digital assets. Check their position and make an accurate assessment of the assets. IndiaCountries in LATAM, etc., are gifted with digital services, to create long-term value. “

About Zinnov

Founded in 2002, Zinnov is a leading global management and strategy consulting firm based in New York, Santa Clara, Houston, Bangalore, Gurgaon, Paris, and Jean. Over the past 20 years, Zinov has successfully consulted with more than 250+ Fortune 500 enterprises and technology companies to value value – both in terms of revenue and optimization. Zinov, a specialist in Product Engineering, Digital Transformation, Innovation and Export Supply Consulting

  • Identify high-tech barriers and key growth areas that promote future growth;
  • Consulting international PE companies on asset list and target evaluation, business diligence and value creation;
  • Growing revenue for companies’ products and services in the new markets with accounting intelligence, market input and market expansion advice;
  • Configure and implement enabled digital transformation lifts with technologies such as AI / ML, Cloud, IOT and RPA.

With experienced consultants, subject matter experts and researchers, Zinov serves clients from a number of industry establishments in the United States, Europe, Japan and India, including Enterprise Software, BFSS, Healthcare, Automotive, Retail and Telecom.

Media connection die
Nitika Goel,
Chief Marketing Officer, Zinnov
[email protected]

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Source: Zinov

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