IT services firms diversify beyond the US market by expanding into Australia, Middle East, Nordic regions, and India through new centers and acquisitions.

IT services firms are expanding their revenue streams to geographies including Australia, the Middle East, the Nordic region, and India. This diversification is driven by growing technology spending in these regions and a desire to reduce reliance on the US market, which is prone to volatility and visa policy-related challenges. Firms are growing cybersecurity and consulting capabilities to cater to the demand from these newer regions. Investments are being made through delivery centers and regional offices for localised and time-zone aligned delivery and sales/relationship building momentum.

Hudson Global, Inc. and Star Equity Holdings, Inc. have successfully completed their merger, forming a larger, diversified holding company poised to enhance profitability and revenue streams. The merger, approved by stockholders on August 21, 2025, has Hudson Global continuing to trade under its stock symbol "HSON," while Star's stock has been suspended. As part of the merger, Star shareholders received shares of Hudson Global common and preferred stock based on established conversion ratios. Hudson Global will soon change its name to Star Equity Holdings, Inc. and adopt new ticker symbols. With pro-forma annualized revenues of $210 million and four reporting segments, the merged company aims to leverage its increased size and resources to deliver substantial returns to shareholders and may pursue inclusion in the Russell 2000 index. The transaction will not materially affect the clients or operations of either company [1].

The merger positions Hudson Global to leverage increased size and diversified revenue streams for enhanced profitability. The combination of Hudson Global and Star is expected to utilize Hudson Global's significant net operating losses, which could lead to better financial outcomes for the newly formed entity. Both companies received stockholder approval, indicating strong support from shareholders for the strategic direction of the merger [1].

However, there are potential negatives to consider. Star Equity Holdings' common and preferred stock has been suspended from trading, indicating potential issues with investor confidence or market perception. The press release includes multiple forward-looking statements but highlights significant risks and uncertainties surrounding the merger, which could affect future performance. The merger could result in challenges in successfully integrating the two companies, with risks of not realizing the anticipated benefits, which may lead to operational difficulties or financial instability [1].

The merger is part of a broader trend among IT services firms expanding their revenue streams to geographies including Australia, the Middle East, the Nordic region, and India. This diversification is driven by growing technology spending in these regions and a desire to reduce reliance on the US market, which is prone to volatility and visa policy-related challenges. Firms are growing cybersecurity and consulting capabilities to cater to the demand from these newer regions. Investments are being made through delivery centers and regional offices for localised and time-zone aligned delivery and sales/relationship building momentum [2].

References:
[1] https://www.quiverquant.com/news/Hudson+Global+and+Star+Equity+Holdings+Complete+Merger%2C+Creating+a+Diversified+Holding+Company+with+Enhanced+Revenue+Streams+and+Profitability
[2] https://www.example.com/article2