This sector is out of favor unless they are bringing in foreign help -check out Mastech this year.
Mark my words - this is the big year for consolidation in this industry - when 2nd quarter comes in bad for these companies and it will - the only thing left to do is merge to cut expenses. Margins will never get back up because the customers have gotten wise to the game and seen the principals ride off in their private jets -the party is over !
i.e. Agilera and DigiTerra. For one, there were to many groups associated with CIBER and it was difficult to create a unique identity within the company (EAS, ESG, BIT, CSG, CEO, etc.) Regardless of whether anybody realizes it or not, CIBER has essentially become a holding company in the consulting arena. The same scenario would be true if, for example, Deloitte and Touche did a carve-out of their five core competency businesses. Mark my words, there WILL be an increase in shareholder value - and the reason will be very obvious at a later date. Spin-offs and carve-outs are not considered an immediate value-add to shareholders anymore. However, if you do enough DD, you will see that the Agilera and DigiTerra business plans have actual merit, direction, strong management and most importantly - referable customers. Hold on to your CBR shares longs.
I agree about the consolidation but I'm not sure the party is over. The party is just not as big or wild as your typical college kegger.
The demand is starting to ramp up again and I think the best companies will prevail. CIBER has as good a chance as any but they will have to perform. I expect CIBER, Keane, CTG, etc. to see some consolidation with the Web darlings who need depth and scale. Companies like Razorfish, Proxicom, Viant, etc. Time will tell.