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IT services suppliers are aligned with shift to ICT and digital transformation, and will continue to outperform TIS market

According to Technology Business Research, Inc.’s (TBR) 3Q16 Telecom Infrastructure Services Benchmark, the telecom infrastructure services (TIS) market declined as operators capped capex levels and shifted spend from network infrastructure to IT and software. Vendors heavily exposed to network hardware services, such as Ericsson and Nokia (TIS revenue with Alcatel-Lucent included was down on a pro forma basis), bore the brunt of the market decline, while most IT services and pure play software suppliers outperformed the broader market. TBR attributes this outperformance by IT and software suppliers to their strong alignment with the telecom industry shift to ICT and digital transformation, two areas that require deep IT and software expertise.

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