Empired Ltd (ASX:EPD)

The IT consulting landscape in Australia is changing. It's probably a combination of an in-sourcing trend, cuts in government spending, a reduction of non-core customisations/development work (eg. intranets) and a shift to cloud services. Consulting firms that have been previous star performers, such as DWS (ASX:DWS), Oakton (ASX:OKN), SMS (ASX:SMX) and ASG Group (ASX:ASZ) have seen growth stall.

But with change comes opportunities, and one company that is doing well in this challenging environment is WA based Empired Ltd (ASX:EPD). They’re a company with the usual array of enterprise applications, managed services and IT consulting. What stands out for me is the company’s sales momentum. Having secured the services of key ASG Group personnel around this time last year, Empired has been winning contracts hand over fist.

Looking forward to the half yearly results in a few week’s time.

RXP Services Limited (ASX:RXP) is also another momentum building small-cap IT company that may be worth the look. Though its acquisition heavy strategy may be off-putting for some.

EPD closed today at an all-time high of $0.46.

Disclosure: At the time of publishing, I own shares in EPD.