FTSE 250 Index beneficiary Soft cat (LSE:SCT) could be a great investment for me to benefit from the way the world adapts to the apply of technology in everyday life.

A perfect example of this is when I had to fill out a long form on my local council’s website to request a replacement recycling bin. A few years ago, a elementary phone call would have sufficed.

Here’s why I’d happily buy Softcat shares the next time I have some spare cash.

Technology provider

Softcat is a British provider of IT infrastructure and services. Its core offerings include software licensing, workplace technology, cybersecurity, networking, and more. The company focuses primarily on public sector organizations and miniature and medium-sized enterprises.

Interestingly, the stock has been stagnant for the past 12 months. It is currently trading at 1480p, down from 1482p at this time last year.

My investment case

Starting with the bear case, I believe the main reason the share price has not increased significantly over the past year is Softcat’s core customer base. Public sector organizations are at the mercy of economic volatility. This turbulence can lead to budget cuts and reviews. In turn, spending on non-essential technologies can be reduced. Since Softcat is heavily dependent on this sector, profits and returns may be reduced going forward.

The other two concerns I have are valuation and geographical reach. Softcat shares are currently trading at a price-to-earnings ratio of 27. While high valuations are the norm for tech stocks, could growth already be factored in here? In terms of reach, all of Softcat’s revenue comes from the UK, which is different to competitors such as Priceswhich has a wider reach, which can give it a competitive advantage.

Moving on to the other side of the coin, it’s demanding to ignore the Softcat story from a performance and share price perspective. The stock is up about 500% over the past decade, driven by exceptional performance, growth, and shareholder value.

While the past is no guarantee of the future, I still believe there is a lot of room for growth. For example, the public sector has probably been neglected from a digital perspective in recent years. While I appreciate the risk of budget cuts, many organizations that Softcat has excellent relationships with have to spend money on IT solutions to keep up with the newfangled world. This can translate into increased profits and returns for the company.

Additionally, the emergence of artificial intelligence (AI) could be another way to boost Softcat’s budget.

Finally, a dividend yield of 2.5% sweetens the investment case. However, I understand that dividends are never guaranteed.

My verdict

Despite the credible challenges, I believe the pros outweigh the cons. Softcat is the kind of stock that has shown a way to navigate tough conditions, including a competitive sector, to thrive and become a well-established force.

Given the potential for massive growth, I think Softcat’s journey is far from over. There could be lucrative times ahead, and I’d happily buy some shares to enjoy the journey.