With rapid digital advancements and the increasing adoption of remote work, the demand for IT services and consulting is expected to rise. Accenture plc (NYSE:ACN) and DXC Technology (DXC) should benefit from the industry tailwinds. But which of these two stocks is a better buy now? Read more to find out.Professional services company Accenture plc (ACN) provides strategy and consulting, interactive, and technology and operations services worldwide. In addition, the company offers cloud, marketing, supply chain management, and sustainability services. On the other hand, DXC Technology Company (NYSE:DXC) provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. It operates in two segments, Global Business Services, and Global Infrastructure Services.
Amid the rising adoption of advanced technologies, the IT services and consulting market is expected to grow exponentially. Moreover, as governments worldwide are reinstating lockdown and travel bans to limit the spread of the highly transmissible omicron variant of the coronavirus, the demand for IT services and consulting is expected to rise further in the near term, owing to increasing dependence on hybrid working models. According to a Gartner , Inc. (NYSE:IT) report, worldwide IT services spending is expected to reach $1.2 trillion in 2021, representing a 9.8% increase from 2020. Therefore, both ACN and DXC should benefit.
ACN has gained 61.9% over the past year, while DXC has returned 36.3%. Also, ACN’s 53.4% gains year-to-date are significantly higher than DXC’s 22.1% returns. Moreover, ACN is the clear winner with 52% gains versus DXC’s 11.1% returns in terms of the past nine months’ performance.