Average lifespan of S&P companies

Some areas of economy are more predictable than expected. Look at this graphic:


The average life of the companies is decreasing. I guess that if we filter this data by IT companies the trend is more aggressive.

I think about how the IT market is evolving, the impact of massive growth of small companies that are being able to cover market needs, creating new markets and absorbing a piece of the pie of the blue chips IT budgets.

Last week when I was attending start-up events, people were talking about a product average life of 18 months (for a hardware product), on the software products the life is even less. How can big IT corporations being able to accelerate their speed of product evolution?

Words as “outsourcing” are legacy terms, but there are still so many companies delivering using that model. There were a generation of people who lost their jobs during the 1998-2005. There is right now a new wave of people suffering the same issue.

This trend does not only applies to IT, other industries are affected by the same trend. In the continue creative destruction process, there is continuous transformation.

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