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Sectors, Industries, and the Business Cycle — Information Technology
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Information Technology

Information Technology

The Information Technology sector covers a broad range of technologically based goods and services.

First, the sector includes companies engaged in technology software and services, including software developers in various fields, such as the Internet, apps, systems, data management and/or home entertainment, as well as companies that provide information technology consulting and services, as well as data processing and outsourced services.

Secondly, the sector includes companies engaged with technology hardware and equipment, including manufacturers and distributors of communications equipment, computers & peripherals, electronic equipment and related instruments.

And finally, the sector also includes manufacturers of semiconductors and semiconductor equipment.

The sector covers the following industries:

  • Communications Equipment
  • Electronic Equipment, Instruments & Components
  • IT Services
  • Semiconductors & Semiconductor Equipment
  • Software
  • Technology Hardware, Storage & Peripherals

The Information Technology sector is constantly evolving through innovation while investors are constantly searching to invest in the next new company. Its industries are driven by upgrade cycles and the general health of the economy. The sector often thrives when a new generation of technology comes out that requires businesses and consumers to make technology upgrades. For this reason, it is somewhat affected by the business cycle because consumers are likely to postpone upgrades when economic growth is slow.