ISG
22.1.2024 10:01:25 CET | Business Wire | Press release
Demand for IT and business services in Europe dipped slightly in the fourth quarter, but was up sequentially from the third quarter, indicating the start of a potential market rebound, according to the latest state-of-the-industry report from Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The EMEA ISG Index™, which measures commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows ACV for the combined market (both managed services and cloud-based as-a-service) at US $7.2 billion for the fourth quarter, down 1 percent from the prior year, but up 4 percent from the third quarter.
“The European market appears poised for a rebound,” said Steve Hall, president, ISG EMEA. “Although down year on year against some tough comps, most segments showed positive sequential growth in the fourth quarter. We also saw growth in new-scope awards and a drop in contract restructurings year on year. This could indicate a bottoming-out of the market, as we begin to move past aggressive cost optimization and start to see new shoots of investment.”
Hall said several signs point to a better 2024. “Conditions are right for a turnaround. Inflation is cooling rapidly and central banks are planning interest rate cuts. That should create a more friendly environment for enterprise spending and capital deployment in 2024.”
Q4 Results by Segment
Managed services ACV for the fourth quarter came in at US $3.9 billion, up 7 percent versus the prior year. There were 268 managed services contracts signed in the quarter, up 3.5 percent, including three mega deals (contracts with ACV of US $100 million or more). Although the number of such deals was even with a year ago, the ACV of this year’s mega deals was 7 percent higher. The ACV of new scope awards was US $2.7 billion, up 13 percent year on year, while that of restructured contracts fell 4.5 percent, to US $1.2 billion.
Within managed services, IT outsourcing (ITO) advanced 10 percent, to US $3.0 billion, driven by strength in applications development and data center services, while business process outsourcing (BPO) dipped 2 percent, to US $929 million.
ACV in the as-a-service (XaaS) segment fell 8 percent versus the prior year, to US $3.3 billion, but was up 1 percent from the prior quarter, the second straight quarter it rose sequentially. Within this segment, infrastructure-as-a-service (IaaS) fell 15 percent, to US $2.2 billion, while software-as-a-service (SaaS) rose 8 percent, to US $1.1 billion.
Full-Year Results
EMEA’s combined market ACV was US $29.0 billion, down 3 percent over the prior year. It was the first time since 2016 EMEA had a down market for the full year.
Managed services had a record year, with ACV of US $15.9 billion, up 4 percent. ITO, at US $12.0 billion, was up 4 percent, while BPO, at US $3.9 billion, was up 3 percent. A total of 1,093 managed services contracts were awarded in 2022, even with the prior year. Twelve of those were mega deals, down from 14 in the prior year but up 40 percent by total ACV. Among sectors, financial services, up 26 percent, and energy, up 30 percent, drove the market.
The XaaS segment generated ACV of US $13.1 billion, down 9 percent, the first time XaaS ACV fell in the EMEA region for the full year. IaaS fell 15 percent, to US $8.9 billion, while SaaS rose 4 percent, to US $4.2 billion. XaaS accounted for 45 percent of the combined market in 2023, down from 49 percent in 2022.
Geographic Performance
In the fourth quarter, the region’s largest market, the U.K., generated US $1.3 billion of managed services ACV, up 54 percent versus the prior year. It was the fourth consecutive quarter ACV in the U.K. topped US $1 billion – a first. France, the region’s third-largest market, produced ACV of US $801 million, up 67 percent, while DACH, the region’s second-largest market, saw its ACV decline 21 percent, to US $730 million
For the full year, the U.K. generated US $5.6 billion of managed services ACV, its second-best year ever, behind 2012. The Benelux market was the only other geographic market in positive territory for the year, up 16 percent, to US $1.2 billion. DACH was down 23 percent, to US $2.9 billion, while France dipped 4 percent, to US $2.2 billion.
2024 Global Forecast
ISG is forecasting 4.25 percent growth for managed services and 15 percent revenue growth for XaaS in 2024.
“We expect spending for application modernization and business transformation projects led by GenAI to continue at high levels in 2024. Public cloud spending should accelerate as optimizations phase out. We also expect small discretionary deals to recover, as well as Financial Services industry spending to rebound,” Hall said.
About the ISG Index™
The ISG Index™ is recognized as the authoritative source for marketplace intelligence on the global technology and business services industry. For 85 consecutive quarters, it has detailed the latest industry data and trends for financial analysts, enterprise buyers, software and service providers, law firms, universities and the media. For more information about the ISG Index, visit this webpage.
The 4Q23 Global ISG Index results were presented during a webcast on January 18. To view a replay of the webcast and download presentation slides, visit this webpage.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240122943164/en/
About Business Wire
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
REV Ocean Appoints Paul Baribault as CEO Ahead of 2027 Global Operations29.10.2026 15:45:00 CET | Press release
Global conservation and philanthropic leader to spearhead REV Ocean's next chapter, connecting world-class science with international collaboration and ocean protection REV Ocean has appointed Paul Baribault as Chief Executive Officer as the organization moves towards the international debut of its 195-metre research vessel in Rio de Janeiro in April 2027, alongside the UN Ocean Decade Conference. One of the world's largest privately owned research and exploration vessels, REV represents a major philanthropic investment in ocean science. With nine laboratories, advanced deep-sea exploration vehicles and dedicated collaboration facilities, it is designed to give scientists access to world-class research infrastructure and connect their discoveries with the people and institutions able to drive ocean protection. Baribault joins as REV Ocean moves from a decade of engineering and construction into international operations. His mandate will be to build the international partnerships, fundi
Holder Partners Launches Strategic Communications Practice and Appoints Ali Ponte as Director and Practice Lead29.10.2026 15:15:00 CET | Press release
The new practice connects strategic communications and stakeholder engagement with Holder Partners’ capabilities in investigations, disputes, cybersecurity, due diligence and risk advisory. Holder Partners, a multidisciplinary consulting and advisory firm, today announced the launch of its Strategic Communications practice and the appointment of Ali Ponte as Director and Practice Lead. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20261027701219/en/ Ali Ponte, Director and Practice Lead of Holder Partners’ Strategic Communications practice. The practice advises leading companies and institutions, their boards, senior executives and counsel on communications, reputation and stakeholder considerations in complex matters and periods of significant change or opportunity. Each engagement is tailored to the client’s objectives and, where relevant, draws on Holder Partners’ broader advisory capabilities. Its strategic counsel, infor
Accertify Formalizes Partner Ecosystem as Fraud, Payments, and Chargebacks Converge Into a Single Risk Surface29.10.2026 15:00:00 CET | Press release
New partner program brings payment providers, orchestrators, commerce platforms, and consultancies together around the industry's largest fraud data community Accertify, a leading fraud decisioning provider whose Predictive Yes Platform helps merchants say yes to more good customers, more revenue, and more growth, today announced the launch of the Accertify Partner Program, a formalized partnership ecosystem connecting payment providers, orchestrators, commerce platforms, and consultancies to Accertify’s network-powered fraud intelligence. Partners can join through two tracks. The Referral track lets partners make a single introduction while Accertify handles the sale, implementation, and support. The Reseller track lets partners sell Accertify on their own contract and own the client relationship and margin. Partners that integrate with Accertify follow a defined certification path, so clients get a tested, supported connection from day one. Every client a partner brings joins a conso
Draslovka to Acquire ex-Natron Energy Battery IP, Completing a Vertically Integrated Western Sodium-Ion Value Chain29.10.2026 14:30:00 CET | Press release
Acquisition gives Draslovka control of former Natron Energy IP portfolio spanning sodium-ion materials, cells and complete battery systems. Deal combines acquired IP with Draslovka’s existing chemistry and European cathode-material capabilities, bringing key parts of the sodium-ion value chain together within one Western-aligned group and its partners. The IP acquisition strengthens Draslovka’s position across the emerging Western sodium-ion battery value chain. Technology targets applications where safety, high power, long cycle life and performance across a wide temperature range are critical, including data centers, grid storage, defense, industrial fleets, telecoms, rail and aviation. The acquired IP will substantively boost Draslovka’s technology offering, a portfolio of transformative and protected innovations for specific industries. Draslovka’s US-based subsidiary, COVORO MINING SOLUTIONS LLC (Covoro), the operator of one of the largest solid sodium cyanide plants in the world,
Veracode Finds First Meaningful Gain in AI Code Security Since 2025 as Average Pass Rate Hits 62%29.10.2026 14:27:00 CET | Press release
October 2026 Study: Anthropic’s Claude Opus 5.5 and OpenAI’s GPT-6-Sol Jointly Lead at a Record 73%, Breaking the Previous High of 68% Veracode, the global leader in application risk management, today announced a jump from 56 percent to 62 percent in overall AI-generated code security, alongside a drop in vulnerabilities from 44 percent to 38 percent — the most significant improvement since the GenAI Code Security Report series began in July 2025. Anthropic's Claude Opus 5.5 and OpenAI's GPT-6-Sol co-lead the rankings at 73 percent, surpassing the previous high of 68 percent set by GPT-5.5 in July 2026. “We’ve been analysing code generated by multiple LLMs for more than a year. Until now, we have not seen a marked improvement in AI code security, despite consistently near-perfect functionality,” said Chris Wysopal, Co-founder & Chief Security Evangelist at Veracode. “This is the first time since running our study that we’ve been able to report a meaningful move on the security dial. Te
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom