Digitalization and AI to support the sector
![](/content/onemarketing/aztrade/allianz-trade_com/en_global/economic-research/sector-reports/it-services/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co_9182842/grid-0-par/wrapper/wrapper/image.img.82.3360.png/1722256166849/low-risk.png)
LOW RISK FOR ENTERPRISES
Last Update: July 2024
Strengths & Weaknesses
![Strenghts](/content/onemarketing/aztrade/allianz-trade_com/en_global/economic-research/sector-reports/it-services/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co/grid-0-par/wrapper_copy_copy_co/wrapper/image.img.82.3360.png/1720687529774/plus.png)
- The digitalization of the economy is a strong long-term driver
- Broad B2B customer base
- High value added and strong margins in many segments
- Recurring revenues
![Weaknesses](/content/onemarketing/aztrade/allianz-trade_com/en_global/economic-research/sector-reports/it-services/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co/grid-1-par/wrapper_copy_copy/wrapper/image.img.82.3360.png/1720687542983/minus.png)
- Low barriers to entry
- Reliance on corporate IT spend
- Regulation on data and privacy can be a hurdle for European firms
- High concentration in certain services (cloud, cybersecurity etc.)
- High fragmentation and competition in consulting, programming and managed services