This Tracxn Feed Report, dated 17th February 2025, provides an overview of the IT services sector, focusing on funding, investors, acquisitions, IPOs, companies, unicorns, and business models.Overview: The report includes key statistics on top IT services companies like UST, NTT DATA, Breed Reply, and Globant, as well as 1&1 IONOS, Genpact, Accenture, and Epam. It specifies that the feed includes companies providing IT outsourcing for software application development, software testing, big data, networking, security, virtualization, IT operations, data centres, cloud, storage, and hosting, as well as distributors/resellers of IT infrastructure equipment. Management/strategy consulting, AR/VR consulting, and enterprise services (HR, Marketing, Legal, Telecom, BPO) are excluded.Funding: Over the last two years, there has been a total funding of $78.9 billion across 11,488 funding rounds. The United States leads in the number of total companies (57,068) and funded companies (52,377). The top geographies by the number of companies are the United States, India, the United Kingdom, Germany, and Canada. The United States also dominates in terms of funding, accounting for 56.4% of the total, followed by China (11.9%) and the United Kingdom (11.5%). Top funding rounds in the last two years include Vantage Data Centers securing $10.0B (Series G), $5.06B (Series D), $2.6B (Series F), and $1.6B (Series E), and Aligned with a $5.0B Series D. The Year-on-Year (YoY) funding trend shows a Compound Annual Growth Rate (CAGR) of -13% over three years and -7% over five years. Seed stage funding saw $4.6B invested across 458 rounds, early stage $7.8B across 601 rounds, and late stage $8.7B across 562 rounds. The median round size in 2025 YTD is $983K for Seed, $7.4M for Series A, and $18.8M for Series B.Investors: The most active seed stage investors in the last two years are Y Combinator (16 rounds) and Techstars (13 rounds). For early stage, BGF (29 rounds) and Intel Capital (27 rounds) are the most active. In the late stage, China Internet Investment Fund (11 rounds) is the most active. Top institutional investors overall include Right Side Capital Management (14 investments in the feed), East Ventures Japan (13), and Kima Ventures (13).Acquisitions: There have been 81 total acquisitions in the IT services sector. The average funding raised before acquisition is $150M, and the average time from first funding to acquisition is 9.5 years, with an average acquisition price of $500M. Notable top acquisitions include Ultimate Software by Hellman & Friedman, Blackstone, etc. for $11B in Feb 2019, and Peoplesoft by Oracle for $10.3B in Dec 2014. Visma (Norway) and Bullhorn (United States) are among the most active acquirers, each with 9 acquisitions.IPOs: The report notes 0 IPOs in the summary information. Key IPO statistics show an average funding raised before IPO of $150M, an average of 9.5 years from first funding to IPO, and an average IPO market capitalisation (Mcap) of $500M. Top IPOs listed include Ultimate Software with an IPO Mcap of $11B in Feb 2019 and Peoplesoft with $10.3B in Dec 2014.Companies: The report tracks a total of 252,292 companies in the IT services sector, with 11,488 having received funding. The top cities by the number of companies founded are London (5525), Bengaluru (5177), and Hyderabad (3389). The United States has the highest number of companies founded (57,068), followed by India (52,377) and the United Kingdom (17,836). Analysis of company team backgrounds shows that a significant amount of funding has gone to companies with founders from institutions like Wharton School, University of Pennsylvania, IIT Delhi, and Stanford University. Similarly, companies with founders having prior experience at Microsoft, Google, and Goldman Sachs have also attracted substantial funding.