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
Ant International, Mastercard and Visa Initiate Collaboration on Know-Your-Agent Interoperability to Scale Agentic Commerce10.9.2026 03:00:00 CEST | Press release
Ant International, Mastercard, and Visa have begun collaboration on a Know-Your-Agent (KYA) interoperability framework, designed to help card networks, digital wallet ecosystems, agent platforms and marketplaces streamline agent onboarding and identification across networks, based on shared principles while preserving each network's own verification and decisioning processes. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260909003891/en/ Ant International, Mastercard and Visa initiate collaboration on Know-Your-Agent interoperability to scale agentic commerce AI agents are evolving from making recommendations to completing purchases on behalf of users. By 2030, AI agents are projected to orchestrate US$3 trillion to 5 trillion of global consumer commercei. Underlying the mega-trend is the KYA architecture of payment networks and service providers, which establishes requirements and accountability, verifies agent identities,
Andersen Global etablerer nyt medlemsvirksomhed i Frankrig9.9.2026 23:00:00 CEST | Pressemeddelelse
Andersen Global styrker sin tilstedeværelse i Frankrig med tilføjelsen af Andersen Société d'Avocats (Andersen in France), en medlemsvirksomhed baseret i Paris, der tilbyder integrerede juridiske ydelser til klienter i Frankrig og internationalt. Andersen in France tilbyder strategiske juridiske løsninger inden for selskabsskat, international skat, transfer pricing, moms og skatteprocesser og bistår klienter over hele verden. Under ledelse af de administrerende partnere Benoît Dambre og François Morazin håndterer det tværfaglige team også specialiserede områder som byplanlægning, fast ejendom, intellektuel ejendomsret og privatlivsbeskyttelse, bæredygtighed og ESG, EU-ret og sanktioner samt andre komplekse juridiske problemstillinger. "Vi ser juridisk rådgivning som mere end blot at håndtere umiddelbare udfordringer – det bør hjælpe klienter med at træffe kvalificerede beslutninger og opsøge muligheder med selvtillid," udtalte Benoît. "At blive en del af Andersen Global giver os muligh
Cyclic Materials Opens America’s First Commercial-Scale Facility Delivering Automated Rare Earth Magnet Recovery9.9.2026 22:09:00 CEST | Press release
The Mesa, Arizona facility deploys Cyclic Materials’ proprietary technology to process up to 25,000 metric tons of magnet-bearing products annually, creating a new domestic source of rare earth elements and copper, aluminum and steel for direct reintegration into U.S. manufacturing Cyclic Materials announced today the opening of its first commercial-scale rare earth magnet recycling facility in Mesa, Arizona, marking a major milestone in building domestic supply of rare earths and critical minerals. With an annual processing capacity of up to 25,000 metric tons of magnet-bearing end-of-life products, the facility produces Cyclic’s rare earth magnet material, Mag-Xtract™, and critical minerals such as copper and aluminum, and steel. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260909142592/en/ Leaders gather to mark the opening of Cyclic Materials’ new facility in Mesa, Arizona. From left to right: Herbert Flores, Arizona C
Belkin Introduces Titan SmartShield Pro Collection for the New iPhone 18 Pro Lineup9.9.2026 21:00:00 CEST | Press release
New collection combines advanced Nano-Titan protection with options for crystal-clear viewing, enhanced screen privacy and blue-to-red light conversion Belkin, a leading consumer electronics brand for over 40 years, today introduced its new Titan SmartShield Pro collection, designed to protect and enhance the experience of the new iPhone 18 Pro lineup. The collection includes three distinct screen protectors – clear, Blue-to-Red and Bright Privacy – each combining advanced Nano-Titan Technology with premium anti-reflective properties, exceptional scratch resistance and up to 9 feet of impact protection.* This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260909094720/en/ Belkin Titan SmartShield Pro Blue-to-Red Light screen protector As smartphones become increasingly central to how people work, travel and connect, the Titan SmartShield Pro collection goes beyond traditional screen protection to address the different ways consum
PPAI Releases Landmark Study Showing Branded Merchandise Supports a $472 Billion Global Economic Footprint9.9.2026 19:24:00 CEST | Press release
First-of-its-kind Oxford Economics study reveals annual spending, jobs and tax contributions Branded merchandise connects brands and people every day, but its impact extends well beyond the products consumers wear, use, receive or purchase. A landmark study commissioned by Promotional Products Association International (PPAI) provides the first comprehensive look at the global economic ecosystem behind branded merchandise. Conducted by independent global advisory firm Oxford Economics, the Branded Merchandise Global Market Report measures the industry end to end, from manufacturing and decoration to distribution, retail, e-commerce, fulfillment, marketing and brand activation. Key findings: $338.3 billion was spent on branded merchandise globally in 2025. The industry supported $472.3 billion in global GDP. Branded merchandise supported 11.9 million jobs worldwide. The sector supported $141.3 billion in global tax revenues – roughly the same as the entire Swiss federal budget. “For yea
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