Tech Beat: IT outsourcing

At a time when technology has become an essential component to just about any kind of business, it’s easy to overlook the fact that maintaining a network of computers can be a business in itself, and a pretty complicated one at that.

For those well versed in the multi-billion-dollar IT outsourcing industry, it might also be hard to understand how some small-cap companies can compete against the global players.

There is a thriving industry that outsources IT products and services, managing other companies’ computer networks and helping them install and maintain newer technologies so that they can devote more energy to their primary operations. But as more of this work has moved overseas, it’s become increasingly difficult for the little local guys to stay in business.

But a handful of small-cap companies are, in fact, holding their own in the IT outsourcing business. What’s perhaps most interesting about these companies is that, although their total revenues are modest, large chunks of their business often come from major companies or organizations.

Among the small-caps with that have had varying degrees of success in this space: Zanett Inc. (Nasdaq: Zane), Pomeroy IT Solutions Inc. (Nasdaq: PMRY), and Bell Industries Inc. (AMEX: BI). 

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