Over the years, we have observed that many of the companies we work with have been referred to as “Technology Enabled Services” (TES). While there are a myriad of ways to define these Technology companies, we believe a Technology Enabled Service company is a business services company that uses proprietary technology to deliver something that is better, faster, and cheaper than if you do it yourself or hire a traditional firm. These capabilities help drive a company toward a more efficient business model by providing a lower cost service that has become a “must-have” in the economy today. Profound technology advances are changing the way legacy software and services are delivered, including powerful cloud computing technologies, low cost data storage, the ubiquity of mobile computing devices, and the explosion of Big Data and analytics.
Technology today enables companies to monitor, measure, customize, and bill for asset use at a much more granular level than ever before, which is why TES companies remain one of the most attractive equity stories in the marketplace. Companies can now purchase units of service and account for them as a variable cost rather than undertaking a large capital expenditure. The demand for tech enabled services will continue to be driven by companies looking to reduce costs and streamline operations. The imposed efficiencies of the business are driving superior operating performance. The model is spreading beyond IT as a range of companies test ways to monetize underutilized assets by transforming them into services, which benefits corporate buyers that can side step owning the asset itself. We take great pride in working with business that have the ability to scale and shape services that were otherwise once local and isolated continues to spread.