Author: Kelsey Kovachik

CIL and JEGI LEONIS have surveyed leading technology consulting and services firms across the US to gain insights into their outlook and the opportunities they see for the industry.

The survey focused on three areas:

• Market conditions: How the technology services market performed through 2024 and initial observations for 2025, focusing on the impact of macroeconomic and political uncertainty and how the firms in our sample are evolving their differentiation strategies to adapt to longer-term disruption trends.
• Value creation opportunities: The top and bottom-line strategies technology services firms are using to stay competitive, including revenue growth and margin levers, AI integration and global delivery models.
• M&A outlook: How firms are balancing organic and acquisitive growth and the outlook for M&A.

If you would like an in depth discussion on this topic please contact us. If you have any issues receiving the report, please contact Kelsey Haar at khaar@JL-co.com.

JEGI CLARITY’S 21^ST Annual Media & Technology Conference in New York brought together senior executives and investors from across the global media, marketing, information, and technology sectors. Among other topics, we explored the evolving landscape of the Legal Market, key industry trends, the impact of M&A, and winning strategies for Legal Software and Services businesses looking to stay competitive. Here’s a brief overview of their insightful presentation.

Introduction

The ongoing reinvention of the way that law firms and their clients do business in the legal market is gathering pace; in an industry historically bound by precedent, the sector is undergoing an uncharacteristically bold transformation.

At the heart of this change is the increasing intersection of law and technology, driven by deregulation, evolving client expectations, and investor appetite. Since 2020, we have completed 20 M&A transactions across diverse software and tech-enabled services sub-verticals of the legal market, from litigation support and contract analytics to online legal services and enterprise legal management, including 6 in the last 10 months alone.

Key Industry Themes

Artificial Intelligence (AI) Everywhere

AI has rapidly transitioned from being primarily used in eDiscovery and litigation analytics to being essential across the entire legal tech services landscape. Its adoption is broadening daily, with applications embedded in the workflow of law firms and their clients. Legal software platforms are placing a strong emphasis on optimizing workflow and harnessing data-driven insights to boost efficiency and accuracy.

This wave of transformation is particularly reshaping high-volume, process-intensive segments of the market such as mass tort, personal injury and workers compensation, where historically human-intensive work impacted the effectiveness and efficiency of relevant market constituents including plaintiff and defense law firms, their clients, courts and settlement administrators.

Regulatory Liberalization

Australia and the UK blazed the trail by allowing non-lawyers to invest in law firms. The U.S., more cautious, has begun to follow suit, with Arizona approving alternative business structures. This deregulation has been a catalyst for private equity and hedge funds to explore structuring investments in law firms through management service organizations (MSOs), providing law firms with an opportunity to increase investments in technology, talent and geographic expansion and to ultimately have a stronger opportunity for an exit.

A Workflow Revolution

Tech adoption is refocusing attention from precedent to process. Legal work—long riddled with its inefficiencies—is being done more effectively and efficiently as a result of software platforms focused on workflow, transparency, knowledge sharing, collaboration and business intelligence.

Robust M&A Activity

The sector has witnessed a surge in M&A activity. Legal software and tech-enabled services companies are at the forefront of this consolidation, especially in areas such as litigation support, legal research and practical guidance, contract automation, and legal practice management. Multiple “in-market” transactions point to continued momentum into 2025.

Private Equity-backed platforms are building scale through add-on acquisitions, targeting niche capabilities in areas like e-discovery, enterprise legal management, and analytics.

These bolt-on strategies are helping firms diversify their offerings and enter new markets rapidly.

Key Players

There are 37 sub-sectors across the legaltech and tech-enabled services market.  Some of the most active sub-sectors are:

• Enterprise Legal Management (ELM) – Platforms in this space are expanding rapidly by offering comprehensive tools for outside counsel selection and management, workflow and collaboration as well as compliance.

• Legal Practice Management – These platforms serve law firms in all segments of the market, streamlining client intake, billing, matter management, intake, CRM, business intelligence and collaboration within the relevant firm and with clients.

• AI & Analytics Providers – Specializing in benchmarking, medical and other documents and records review, case prediction and natural language processing, these firms are attracting significant investment and experiencing accelerated adoption.

• Litigation Support and Alternative Legal Services – Companies offering scalable legal and business process outsourced services are drawing interest from PE firms seeking reliable, recurring revenue across large total addressable markets.

Private equity rollups are creating multi-solution platforms that provide differentiated end to end value to law firms and their clients.

Investment Drivers

Several core factors are making the Legal Market Technology & Services sector an attractive destination for investment:

• Market Size & Resilience – The legal sector is large and historically stable, even in economic downturns.

• High Fragmentation – The abundance of legaltech and tech-enabled services vendors creates strong opportunities for consolidation and roll-ups.

• Technology Gaps – Law firms are facing increasing pressure from their clients to invest in AI solutions and practice law in a more effective and efficient way.  Also, any law firms still rely on legacy systems, creating opportunities for innovative solutions.

• Regulatory Tailwinds – Evolving ownership structures are allowing financial sponsors to invest in and share fees with law firms whether directly or through MSO structures similar to healthcare and tax & accounting.

• Scalable Business Models – SaaS platforms and managed service providers generate recurring revenue with high margins, appealing to PE investors.

Winning Strategies for LegalTech Businesses, Law Firms and Corporations

To thrive in this fast-evolving market, legal market software and services providers need to adopt targeted strategies:

1. Focus on AI-Driven Solutions – Law firms recognize that they need to  invest in AI technologies that drive efficiency and accuracy across the practice of law lifecycle. From document review to litigation forecasting, intelligent automation will be the cornerstone of competitive differentiation.

2. Build Scalable Platforms – Legal market consolidators must architect modular, cloud-based platforms that allow for easy integration of acquired capabilities. Scalability and interoperability will enable rapid growth through M&A.

3. Pursue Strategic M&A – Legal market vendors should look to acquire firms that complement their existing tech stack or offer access to new verticals and geographies. A disciplined M&A strategy can accelerate market penetration and value creation.

4. Leverage Data as a Strategic Asset – The ability to capture, analyze, and act on legal data is increasingly critical. Companies that develop proprietary data assets—such as clause libraries or litigation benchmarks—will have a lasting edge.

5. Tailor Solutions by Segment – A one-size-fits-all approach no longer works. Legal tech firms must customize offerings for specific practice areas, client types and market segments, ensuring relevance and impact.

Conclusion

Legal Market Technology & Services has transitioned from a niche to a necessity. With technological innovation, regulatory change, and investor interest converging, the legal sector has entered a new era of growth and consolidation. Companies that focus on AI, platform scalability, and strategic expansion will be well-positioned to stay ahead.

As private equity continues to back platform strategies and more law firms embrace digital transformation, legaltech will remain a critical enabler of efficiency and competitiveness in the broader legal ecosystem.

The winners will be those who move swiftly, execute strategically, and deliver measurable value to both legal practitioners and their clients.

For further information, please contact Scott Mozarsky,  JonThackeray or San Datta.

JEGI CLARITY’S 21^ST Annual Media & Technology Conference in New York brought together senior executives and investors from across the global media, marketing, information, and technology sectors.

Hugh Boston and Bob Lockwood explored the evolving landscape of the Tech Services sector, key industry trends, the impact of M&A, and winning strategies for tech businesses looking to stay competitive. Here’s a brief overview of their insightful presentation.

Introduction

Technology services are at the core of business transformation, enabling organizations to operate more efficiently, scale effectively, and deliver greater value. With global IT services revenue projected to reach $1.88Tn by 2025¹, the sector is poised for continued growth.

Key Industry Trends

The Growing Demand for Digital Transformation

Technology services are increasingly seen as mission-critical for organizations seeking to modernize their operations. Businesses are prioritizing digital transformation initiatives, including cloud migration, software integration, and AI adoption. For instance, 75% of EPAM’s top clients are engaged in GenAI programs, underscoring its growing influence on business strategies.

Cloud migration continues to be a major focus, with companies accelerating their shift to cloud platforms to improve agility, scalability, and cost efficiency. This trend is driven by the need for businesses to remain competitive and respond quickly to market changes.

AI and Automation as Catalysts for Growth

Artificial intelligence is playing a pivotal role in transforming the tech services landscape. In 2024, Globant generated $350M from AI projects, while Accenture reported a $4Bn run rate for new GenAI bookings.

AI adoption is driving efficiency through automation, predictive analytics, and personalized customer experiences. Additionally, AI-powered data engineering, analysis, and cybersecurity solutions are becoming essential for businesses looking to safeguard their operations and optimize performance.

Post-COVID Revenue Growth and Stabilization

The tech services sector experienced a significant revenue spike in 2021 due to increased demand during the pandemic, which led to a temporary “COVID bump.”

Following a period of slower growth, the market is now stabilizing, with projected revenue increases of 4% to 5% annually through 2025. Companies like Accenture, CGI, and Cognizant are seeing renewed growth momentum, driven by rising client demand for digital services and consulting. This recovery signals a return to steady, long-term expansion in the tech services industry.

Increased Private Equity Interest

Private equity (PE) firms are heavily investing in tech services, drawn by the sector’s flexible, cash-flowing models and its growth potential. In 2024 alone, the deal value for North American tech services reached $44Bn, with $109Bn² in total global deal value. PE firms are particularly interested in platform-based acquisitions, creating large-scale service providers through strategic add-ons. This consolidation trend is enabling firms to expand their service offerings, enter new geographies, and target emerging customer verticals.

PE has been aggressively building platforms with add-on acquisitions:

 

The Impact of M&A on Tech Services

Driving Scale and Capabilities
Mergers and acquisitions are reshaping the tech services landscape by creating larger, more versatile players. Companies are pursuing M&A strategies to:

• Expand geographical reach – Acquiring firms in new regions to diversify their market presence.
• Enhance capabilities – Gaining access to specialized services, such as AI consulting or cybersecurity solutions.
• Increase customer verticals – Entering new industry sectors through targeted acquisitions.

Platform Growth and Add-On Acquisitions
PE-backed platform companies are actively acquiring smaller firms to scale their operations. This approach is driving significant growth, with add-on acquisitions accounting for a large portion of deal activity. This trend allows firms to rapidly expand their service portfolios while benefiting from economies of scale. It also makes them more attractive to larger buyers, creating favorable exit opportunities for investors.

Consolidation Among Major Players
The industry is witnessing significant consolidation among established tech service providers. Larger firms are acquiring smaller, niche players to offer integrated, end-to-end solutions. This creates stronger, full-service providers capable of meeting the growing demand for comprehensive technology consulting and implementation services.

Winning Strategies for Tech Businesses

To remain competitive in today’s fast-changing environment, tech businesses need to embrace fresh, forward-thinking strategies. Here are five essential approaches to fuel growth and boost marketing performance:

• Prioritize AI-Driven Innovation – Tech businesses that embrace AI-driven solutions will be better positioned to capture market share. Investing in AI-powered data analytics, machine learning (ML), and automation tools can help companies improve efficiency, reduce costs, and deliver more sophisticated services for clients.
• Leverage Cloud Migration Opportunities – With cloud adoption accelerating, tech service providers should focus on cloud migration expertise. Offering specialized services in cloud infrastructure, data engineering, and cybersecurity will attract clients seeking to modernize their operations.
• Pursue Strategic M&A for Growth – Businesses should consider strategic acquisitions that enhance their capabilities and expand their market reach. This could include acquiring firms with complementary technologies or entering new geographical markets.
• Focus on Customer-Centric Solutions – As businesses prioritize digital transformation, tech service firms should offer tailored solutions that align with their clients’ specific needs. Customizing services based on industry verticals and providing measurable ROI will strengthen client relationships.
• Strengthen Cybersecurity and Data Capabilities – With increasing concerns around data privacy and security, offering robust cybersecurity solutions is essential. Investing in data protection, risk management, and compliance services will be a key differentiator.

Conclusion

The tech services sector is entering a period of sustained growth, fueled by digital transformation, AI adoption, and M&A activity. Companies that invest in AI, cloud migration, and strategic partnerships will be best positioned to capitalize on emerging opportunities. With private equity interest driving further consolidation and platform expansion, the sector is set to remain a key driver of business transformation in 2025 and beyond.

For further information, please contact Hugh Boston or Bob Lockwood

¹ Statista ((IT Services revenue consists of four markets: IT Consulting & Implementation, Business Process Outsourcing, IT Outsourcing & Other IT Services including system integration, software installation & support and IT education & training), ² Gartner, JEGI CLARITY

JEGI LEONIS’s 21^ST Annual Media & Technology Conference in New York brought together senior executives and investors from across the global media, marketing, information, and technology sectors.

Hugh Boston dove into the Marketing Services industry, highlighting how technology has increased the sector’s complexity. They also discussed the growing convergence of e-commerce and social media, and how firms can capitalize on this trend to tap into new revenue streams and strengthen customer engagement. Here’s a brief overview of their insightful presentation.

Introduction

The marketing services industry is undergoing rapid transformation driven by technological advancements, shifting consumer behaviors, and evolving business strategies. There are key themes shaping the industry’s future, including the rise of AI, the increase of predictive analytics, greater focus on heightened personalization and automated content.

This article explores these key trends, their implications for businesses, and essential takeaways for firms in the marketing services sector.

Key Industry Trends

Acceleration of Digital Transformation

The marketing landscape has evolved significantly from traditional formats such as print, radio, and linear TV in the 90s to digital-first strategies encompassing search, programmatic advertising, and social media. By 2025, marketing spending is expected to reach $653Bn¹, 70% of which will account for digital marketing spend. This increase in marketing spending is driven in part by innovations in retail media, connected TV (CTV), and programmatic advertising.

The Expanding Role of AI in Marketing

AI is playing a transformative role in content creation, personalization, and predictive analytics. Key statistics reveal that AI adoption has led to a 50%² reduction in campaign time-to-market and a 40%² increase in click-through rates (CTR). Businesses are leveraging AI for ideation, A/B testing, chatbots, and optimization, with further expansion anticipated over the next two years.

Rising Influence of Social Media and Influencer Marketing

Social media advertising is expected to reach $256Bn by 2025³, highlighting the sector’s growing influence. Agencies specializing in influencer marketing, social media management, and data-driven advertising are attracting strong investment. The rise of social commerce, projected to reach $80Bn⁴ in the U.S. by 2025, underscores the increasing convergence of e-commerce and social media.

The Impact of M&A

Mergers & Acquisitions Driving Market Consolidation

The marketing services industry is witnessing increased M&A activity, as brands seek integrated solutions that combine creative, media, and technology capabilities. Omnicom and IPG are consolidating to form the world’s largest full-service advertising firm, reflecting a trend toward full-scale service providers while still maintaining demand for specialized agencies.

Private Equity Interest in Marketing Services

Private equity (PE) firms continue to invest heavily in marketing services, particularly in digital-first and AI-driven platforms. The increasing demand for data-driven, hyper-personalized campaigns has made marketing services an attractive sector for investment, with PE firms deploying over $2.1Tn⁵ in capital to capitalize on industry growth.

Winning Strategies for Modern Marketing Success

To stay competitive in today’s rapidly evolving landscape, businesses must adopt innovative approaches. Here are five key strategies to drive growth and enhance marketing effectiveness:

• Adopt AI-Driven Strategies – Companies must integrate AI into their marketing efforts to improve efficiency, personalize campaigns, and enhance customer engagement.
• Leverage Digital Growth Opportunities – With digital advertising spend surpassing traditional media, brands should prioritize digital channels, including CTV, programmatic advertising, and influencer partnerships.
• Consider Strategic Partnerships and M&A – Businesses looking to expand should evaluate consolidation opportunities to enhance their service offerings and drive efficiency.
• Capitalize on Social Commerce Trends – As e-commerce integrates with social media, businesses should invest in social commerce strategies to capture consumer spending shifts.
• Stay Ahead of Industry Disruption – With continued transformation in marketing technology, businesses must remain agile, embrace new platforms, and leverage data-driven insights to maintain competitiveness.

Conclusion

The marketing services industry is poised for another year of growth in 2025, fueled by AI advancements, digital expansion, and increased M&A activity. Companies that adapt to these changes, invest in emerging technologies, and adopt integrated solutions will be well-positioned to thrive in this evolving landscape.

For further information, please contact Hugh Boston.

¹ Winterberry Group, UK & US outlook for advertising, marketing & data (Feb-25), ² Bain & Company, For Marketers, Generative AI Moves from Novelty to Necessity (Feb-25), ³ Statista (Jul-24), ⁴ eMarketer, ⁵ Pitchbook