The global IT services market is experiencing significant growth and is on track to grow at a compound annual growth rate of 9.5% from 2024 to 2030, as estimated by Grand View Research. This expansion is particularly pronounced in developing economies such as India and China, driven by the increasing adoption of cloud computing and advanced digital technologies.

Growth in this industry is driven by several factors, including increasingly stringent data privacy regulations and heightened concerns over cybersecurity, compelling enterprises to invest heavily in robust IT solutions. The widespread adoption of advanced technologies such as artificial intelligence, machine learning, and the Internet of Things has further fueled market demand.  As businesses across various industries embrace digital transformation, they are turning to IT service providers to meet their evolving needs. The shift towards remote and hybrid work models has necessitated robust IT infrastructure to ensure seamless operations, especially for large enterprises. Cloud computing has emerged as a key driver of market growth, enabling businesses to migrate their critical operations to the cloud and leverage IT services to securely manage these environments. Additionally, the increasing adoption of software-as-a-service models has led to a surge in IT expenditures, as organizations seek to streamline their business processes and focus on core competencies.

Is The Tech Sector Still Booming?

On November 13, Keith Lerner, Co-Chief Investment Officer at Truist Wealth, and Mark Malek, Chief Investment Officer at Siebert Financial, appeared on CNBC and highlighted their outlook for the tech sector outlook.

Lerner expressed a continued preference for technology stocks, particularly those involved in software development. He noted that software companies are increasingly automating processes and driving efficiency across various sectors. This trend positions them well for future growth, even if there are short-term fluctuations in the market. Lerner highlighted that despite any potential pullback due to rising yields or inflation concerns, he views software stocks as having strong leadership potential.

Malek concurred with Lerner’s positive outlook on technology but emphasized a selective investment approach within this sector. He pointed out that ongoing supply chain issues are affecting the chip industry, which could impact performance in certain areas of technology. However, he maintained that significant opportunities exist within the AI ecosystem and other technology-related fields.

As the global IT services market continues to expand at an impressive pace, driven by technological advancements and increasing digital adoption, information technology stocks may be well-positioned to go higher. Given this context, we’re here with a list of 10 high growth IT stocks to invest in now.

Our Methodology

We used Finviz to compile an initial list of IT stocks with high 5-year compound annual growth rates. From that list, we narrowed our choices to 10 high-growth IT stocks that analysts were the most bullish on. The stocks are ranked in ascending order of analysts’ upside potential.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

10 High Growth IT Stocks To Invest In Now

10. Globant S.A. (NYSE:GLOB)

5 Year Revenue CAGR: 31.62%

Average Upside Potential as of November 14: 3.59%

Globant S.A. (NYSE:GLOB) is an IT and software development company operating globally that provides digital solutions and enterprise technology services. It offers a range of services, including blockchain, cloud technologies, cybersecurity, AI, digital experience, and software engineering. It serves various industries, including media, technology, finance, and healthcare.

The company announced strong financial results for the third quarter of 2024. It reported revenue of $614.67 million, a 12.72% increase year-over-year while earning $1.62 per share. This growth was primarily driven by increased demand for its AI-powered solutions. In the first nine months of 2024, AI-related revenue exceeded $250 million, a 120% increase compared to the same period in the previous year. This surge in AI-related revenue underscores the company’s commitment to leveraging AI to deliver innovative solutions to its clients.

Another reason behind the company’s strong financial performance in this quarter was its expanding client base and geographic reach. It added 21 new clients, which will help it generate over $20 million annually, and 331 clients that will contribute more than $1 million annually. It experienced significant growth in the Middle East and APAC regions, with revenue increasing by 35.3% sequentially and 53.1% year-over-year. While Globant S.A. (NYSE:GLOB) has made significant strides in these regions, it’s important to note that it is still in the early stages of establishing a strong presence, which may require substantial investment and time.

The company expects continued strong performance in the coming quarters, driven by its focus on innovation, customer satisfaction, and strategic expansion.

Baron FinTech Fund stated the following regarding Globant S.A. (NYSE:GLOB) in its Q2 2024 investor letter:

“We trimmed Accenture plc and Globant S.A. (NYSE:GLOB) due to continued weak demand for IT services. Business customers are spending on cost-optimization projects, while discretionary spending on revenue-generating projects remains under pressure. We had expected GenAI excitement to be a more meaningful contributor to demand by now, but GenAI-related projects represent a small portion of revenue, AI infrastructure spending is crowding out software spending, and uncertainty about the impact of GenAI is likely causing delays in client decision-making. We believe most of these issues are temporary and expect growth to eventually improve, but we redeployed the proceeds from these sales into higher conviction ideas.”

9. Fiserv Inc. (NYSE:FI)

5 Year Revenue CAGR: 21.20%

Average Upside Potential as of November 14: 5.14%

Fiserv Inc. (NYSE:FI) provides fintech services to clients across the financial services sector, including banks, thrifts, credit unions, securities broker-dealers, mortgages, insurance, leasing and finance companies, and retailers. Its 3 primary segments; Merchant Acceptance, Financial Technology, and Payments & Networks; provide solutions like merchant acquiring, digital commerce, security, POS systems, digital banking, risk management, consulting, and card processing among others.

One of its main products includes Clover, a popular point-of-sale (POS) system used by many small and medium-sized businesses. Clover has been a key driver for the company’s overall growth.  This segment alone reported a 28% year-over-year increase in revenue in Q3 2024, fueled by a 15% annualized payment volume growth. Overall third-quarter revenue grew 5.83% to $4.88 billion.

The company’s focus on product innovation has been instrumental in driving this growth. It launched several new Clover hardware products during the quarter, including the KDS XL, Kiosk, Flex Pocket, and Clover Compact. These new offerings cater to a wider range of merchant needs, from large restaurants to small businesses.

Clover’s geographic expansion has also been impressive. The segment expanded its footprint in Latin America and Asia Pacific, with successful pilots in Brazil, Mexico, and Australia. This international expansion has opened up new markets and growth opportunities for Clover. As Fiserv Inc. (NYSE:FI) continues to invest in Clover and expand its capabilities, the company is well-positioned for sustained growth and success in the future.

The London Company Large Cap Strategy stated the following regarding Fiserv, Inc. (NYSE:FI) in its Q3 2024 investor letter:

“Fiserv, Inc. (NYSE:FI) – Fl delivered another strong quarter with both Merchant and Financial Solutions segments outperforming, driven by solid execution of company initiatives. Their product offerings continue to resonate in the market, and management is effectively leveraging å flexible go-to-market strategy by cross-selling core platforms and point solutions to increase customer share across both segments. Free cash flow generation remains strong with management prioritizing organic reinvestment and capital returns. We are confident in Fl’s ability to generate sustainable earnings growth through its robust product portfolio and disciplined capital allocation.”