ISG
15.4.2024 10:01:31 CEST | Business Wire | Press release
Europe’s demand for IT and business services in the first quarter rose for the first time in a year, powered by growth from the banking, financial services and insurance (BFSI) sector, 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) rose 2.5 percent, to US $7.5 billion, in the first quarter. The market’s year-on-year growth in Q1 broke a string of four consecutive quarters the region was down versus the prior year.
“The European market is on the rebound,” said Steve Hall, president, ISG EMEA. “Both managed services and cloud services were higher in Q1, and managed services was up nearly 5 percent year on year for BFSI, the region’s largest business sector. Business process outsourcing was strong, and we also saw a surge in bundled ADM and infrastructure activity across the region.”
Q1 Results by Segment
Managed services ACV in the first quarter rose 3 percent, to US $3.9 billion. There were 277 managed services contracts signed in the quarter, down 8 percent from the prior year, but up 9.5 percent sequentially from the fourth quarter. Among those contracts were two mega deals (ACV of US $100 million or more). The volume of smaller deals (under US $30 million) was down 10 percent year on year as economic uncertainty weighed on discretionary spending. With companies still focusing on cost reduction, the ACV of restructured contracts climbed 12 percent.
Within managed services, IT outsourcing (ITO) was down 7 percent, to US $2.8 billion, driven by declines in data center and standalone application development and maintenance (ADM) services. Meanwhile, the ACV of bundled infrastructure and ADM services was up more than 80 percent.
Business process outsourcing (BPO) soared 40 percent, to US $1.1 billion, fueled by rising demand for industry-specific services.
By industry, managed services ACV was sharply higher (up 80 percent) in the travel, transportation and leisure sector. BFSI, Europe’s largest industry for outsourcing, saw its ACV climb nearly 5 percent, offsetting weakness in the next two largest sectors – manufacturing (down 5 percent) and telecommunications (down 10 percent).
ACV in the as-a-service (XaaS) segment rose 2 percent year on year, and 9 percent from the prior quarter, to US $3.6 billion – its best quarterly result since the fourth quarter of 2022. This segment’s first-quarter growth ended a streak of four consecutive quarters of year-on-year declines.
Within this segment, infrastructure-as-a-service (IaaS) advanced 7 percent, to US $2.5 billion, fueled in part by growing interest in the data services required to feed generative AI models, while software-as-a-service (SaaS) declined 8 percent, to US $1.0 billion.
Geographic Performance
The region’s largest market, the U.K., generated US $1.2 billion of managed services ACV, its fifth consecutive quarter with ACV of more than US $1 billion, although it was down 4 percent versus the prior year. DACH (Germany, Austria and Switzerland), the region’s second-largest market, saw its ACV decline 6 percent, to US $647 million, while France slipped out of its usual number-three spot as its ACV fell 27 percent, to US $471 million. The Nordics eclipsed France to become Europe’s third-largest ACV market in the first quarter, with ACV of US $600 million, up 45 percent year on year.
2024 Global Forecast
ISG is forecasting 3 percent growth for managed services, down 125 basis points from its January forecast, and maintaining its forecast of 15 percent revenue growth for XaaS in 2024.
“Looking ahead to the rest of the year, economic conditions are forecasted to be less volatile than in 2023, but challenges persist,” Hall said. “The global economy is expected to slow down, impacted by monetary policies to combat inflation, which is expected to decline.
“In this environment, outsourcing could see a boost as companies seek to balance cost management and service quality. GenAI, meanwhile, is poised to be a growth catalyst, with large hyperscalers expected to manage increasing workloads. The data layer, integral for training AI models, presents a prime opportunity for service providers.”
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 86 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 1Q24 Global ISG Index results were presented during a webcast on April 11. 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 AI and 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/20240415403014/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
First Plus Expands Relationship with SS&C to Support Cross-Border Operations in APAC3.8.2026 03:00:00 CEST | Press release
SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced that First Plus Asset Management (FPAM), a multi-asset investment management firm, has selected SS&C to provide cross-border operations support across Asia. SS&C will service First Plus across the full investment lifecycle, delivering a scalable, integrated solution supporting transfer agency, order management and execution and investment accounting. FPAM will utilize SS&C to service its growing cross-border operating model and support around $200 million in assets under management*. “As First Plus has expanded, managing our operations has become increasingly complex,” said Jeb Li, Co-Founder and CEO at First Plus. “SS&C’s global footprint and integrated offerings enable us to easily optimize our workflows, so we can focus on scaling quickly and securely while continuing to deliver risk-adjusted returns and best-in-class client service.” The engagement highlights the breadth and scalability of SS&C’s global service model.
Europe’s Largest Celebration of Irish Culture Arrives in Belfast2.8.2026 10:01:00 CEST | Press release
Fleadh Cheoil na hÉireann arrives in Belfast today (2 August), bringing eight days of traditional music, culture and celebration to the city, with organisers expecting up to 800,000 visitors over the course of the festival. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260729147569/en/ Belfast Fleadh - Maddens Bar accordian, guitar and fiddle player (Chris Heaney) One of Europe’s largest cultural events, Fleadh Cheoil na hÉireann is taking place in Belfast for the first time, transforming the city into a vibrant stage for Irish music, dance, language and culture. More than 200 events and 180 traditional music competitions are taking place across venues, streets and neighbourhoods throughout the week-long celebration. The landmark festival showcases the very best of Irish culture, with a packed programme of All-Ireland competitions, concerts, community events and performances from both established and emerging artists. As Ir
2PointZero Group Signals Global Scale With Revenue Surge to AED 21.9 Billion and Net Profit of AED 7.7 Billion in H1 202631.7.2026 13:42:00 CEST | Press release
Group revenue growth supported by stable gross profit margin of 29%, and adjusted EBITDA of AED 5.0 billionGlobal expansion milestones include the completed sale of TAQA stake, and the acquisition of Traverse Midstream Partners in North America, Baobab Group in Africa, and 60.8% of ISEM in ItalyTIME ranks the Group 36th on the World’s Growth Leaders list for 2026, highlighting market stability, operational scale and disciplined approach to capital 2PointZero Group (ADX: 2POINTZERO), a leading Abu Dhabi-based investment holding firm, announced its financial results for the first half of 2026, reporting revenue of AED 21.9 billion and delivering a Group Net Profit of AED 7.7 billion. This robust performance is reflected in the Group’s adjusted EBITDA, which reached AED 5.0 billion after excluding fair value changes and one-offs. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260731538982/en/ Samia Bouazza, CEO of 2PointZero (P
Datroway® Approved in the EU as Only TROP2 Directed Medicine with Overall Survival Benefit for the First-Line Treatment of Patients with Metastatic TNBC Who Are Not Candidates for Immunotherapy31.7.2026 08:30:00 CEST | Press release
Approval based on TROPION-Breast02 phase 3 trial results where Daiichi Sankyo and AstraZeneca’s Datroway showed a statistically significant and clinically meaningful improvement for the dual primary endpoints of overall survival and progression-free survival Datroway now approved for two breast cancer indications in the EU Datroway® (datopotamab deruxtecan) has been approved in the European Union (EU) as monotherapy for the first-line treatment of adult patients with unresectable or metastatic triple negative breast cancer (TNBC) who are not candidates for PD-1/PD-L1 inhibitor therapy. Datroway is a specifically engineered TROP2 directed DXd antibody drug conjugate (ADC) discovered by Daiichi Sankyo (TSE: 4568) and being jointly developed and commercialized by Daiichi Sankyo and AstraZeneca (LSE/STO/NYSE: AZN). The approval by the European Commission follows the positive opinionof the Committee for Medicinal Products for Human Use of the European Medicines Agency and is based on result
Polpharma Biologics Announces FDA and EMA Acceptance for Review of PB016 Vedolizumab Biosimilar Candidate31.7.2026 08:30:00 CEST | Press release
Polpharma Biologics International AG today announces that the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA) have accepted for review the Biologics License Application (BLA) and Marketing Authorisation Application (MAA), respectively, for PB016, a proposed vedolizumab biosimilar candidate to Takeda’s reference product Entyvio®* (vedolizumab) lyophilized vial for intravenous (IV) administration for the treatment of adults with moderately to severely active ulcerative colitis and Crohn's disease. The BLA and MAA acceptances represent significant milestones in Polpharma Biologics' development program and underscore the company's commitment to advancing high-quality biosimilars and expanding global access to affordable biologic medicines. "FDA and EMA acceptances for review of our IV vedolizumab biosimilar candidate mark a major achievement for Polpharma Biologics and validate our deep scientific expertise in biosimilar development and manufacturing," said
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