CT-INFORMATION-SERVICES
21.1.2021 10:02:07 CET | Business Wire | Press release
Shrugging off the effects of the pandemic, the Europe, Middle East and Africa (EMEA) sourcing market delivered its best quarterly performance ever, with record demand for cloud-based services and a resurgence in managed services, 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 €5 million (£4 million) or more, shows ACV for the combined market, which includes both as-a-service and managed services, reached a record €5.1 billion (£4.6 billion), up 18 percent, in the fourth quarter.
Cloud-based as-a-service ACV reached a quarterly record of €1.8 billion (£1.6 billion), up 25 percent over the prior year, as enterprises continue to move more work to the cloud. Infrastructure-as-a-Service (IaaS) climbed 34 percent, to €1.3 billion (£1.2 billion), while software-as-a-service (SaaS) rose 5 percent, to €479 million (£426 million).
On the strength of five mega-deals in EMEA, including contracts with Siemens and Daimler in the DACH region, managed services rose 14 percent, to €3.3 billion (£3.0 billion), with IT outsourcing (ITO) soaring 55 percent, to €3.0 billion (£2.7 billion). Business process outsourcing (BPO), meanwhile, declined 66 percent, to €331 million (£295 million), the only blemish on an otherwise stellar quarter.
“EMEA produced its best quarter ever, with combined ACV up 35 percent compared with the third quarter, led by five managed services mega-deals in the region—including two deals in the DACH manufacturing sector with Siemens and Daimler,” said Steve Hall, president of ISG. “Cloud-based as-a-service bounced back from a midyear slump to produce a record quarter.”
Full-Year Performance
For the full year of 2020, combined ACV reached a record €17.0 billion (£15.1 billion), up 7 percent, boosted by an as-a-service market that rose 15 percent, to a record €6.9 billion (£6.1 billion). Managed services grew 2 percent, to €10.0 billion (£8.9 billion), despite a pandemic-induced slump in the second quarter.
Within the managed services segment, full-year ITO ACV rose 21 percent, to €8.7 billion (£7.7 billion), with several large deals that closed in the fourth quarter boosting annual growth. Among new-scope contracts, Infosys won an eight-year mega-deal with Daimler for an infrastructure overhaul, and Wipro sealed a mega-deal with German wholesaler Metro AG to launch a digital innovation hub in Düsseldorf that will also support other customers in the region.
BPO ACV, however, fell precipitously, down 50 percent, to €1.3 billion (£1.2 billion), against a strong 2019 performance. As in the other regions, Facilities Management and Contact Centers faltered in EMEA.
In cloud-based services, IaaS rose 23 percent, to €5.1 billion (£4.5 billion), as hyperscalers battle for market supremacy. Among the larger deals, Nokia secured a five-year contract with Google to replace IT infrastructure at contact centers with Google Cloud. Meanwhile, AWS inked a five-year agreement with Standard Chartered Bank, and Microsoft Azure signed a seven-year cloud services deal with Deutsche Telekom.
In the SaaS segment, ACV was off 3 percent, to €1.8 billion (£1.6 billion), despite a number of sizeable deals in this space, including SAP’s contract with Rabobank for S/4HANA, Oracle’s a deal with Aegon for Fusion Cloud ERP, and Salesforce’s agreement with Bentley Motors in the U.K.
Market Insights
The DACH region produced EMEA’s strongest growth in managed services in the fourth quarter, up 90 percent, to €1.7 billion (£1.5 billion), due to the large contract awards made by Siemens and Daimler, as well as TCS’s deal with Postbank Systems.
The U.K. managed services market, meanwhile, declined 32 percent in the fourth quarter, to €704 (£626 million), still a strong result, but down against a tough comparison with a strong fourth quarter in 2019. Among the notable deals in this market was TCS’s multiyear services contract with Prudential Financial unit Pramerica Systems Ireland.
Like DACH, France also nearly doubled its managed services ACV in the quarter, up 83 percent, to €386 million (£343 million), its best quarter since the fourth quarter of 2011. The result was driven by a significant number of mid-sized transaction awards.
2021 Global Forecast
ISG is forecasting the market for cloud-based services will grow 20 percent globally in 2021, and the market for managed services will grow 3 percent.
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 73 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. In 2016, the ISG Index was expanded to include coverage of the fast-growing as-a-service market, measuring the significant impact cloud-based services are having on digital business transformation. ISG also provides ongoing analysis of automation and other digital technologies in its quarterly ISG Index presentations.
For more information about the ISG Index, 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 700 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 1,300 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 .
View source version on businesswire.com: https://www.businesswire.com/news/home/20210121005180/en/
Link:
Social Media:
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
Mobix Labs Signs Definitive Agreement to Acquire Vision Aerial, Accelerating Global Drone Platform for National Security and Aerial Intelligence24.7.2026 13:00:00 CEST | Press release
Transaction accelerates Mobix Labs’ global aerial intelligence strategy and National Security Matters Initiative Mobix Labs, Inc. (Nasdaq: MOBX) today announced that it has signed a definitive agreement to acquire Vision Aerial, Inc., a U.S.-based designer and manufacturer of American-built, National Defense Authorization Act (NDAA)-compliant unmanned aerial systems. The definitive agreement moves the transaction beyond the previously announced letter of intent and represents a major step toward closing an acquisition that would expand Mobix Labs into one of the world’s most important technology growth markets: secure drones, autonomous aerial systems and aerial intelligence for national security, critical infrastructure, energy, public safety, industrial inspection and government operations. Vision Aerial’s customers and end-users include the U.S. Air Force, U.S. Navy, government agencies, energy and utility operators, research institutions and other organizations requiring performanc
Enhertu® Plus Pertuzumab Recommended for Approval in the EU by CHMP as First-Line Treatment for Patients with HER2 Positive Metastatic Breast Cancer24.7.2026 13:00:00 CEST | Press release
Recommendation based on DESTINY-Breast09 phase 3 trial results that showed Enhertu plus pertuzumab reduced the risk of disease progression or death by 44% versus THP with a median progression-free survival exceeding three years If approved, Daiichi Sankyo and AstraZeneca’s Enhertu plus pertuzumab would become first new treatment in the EU in more than a decade for first-line HER2 positive metastatic breast cancer Enhertu® (trastuzumab deruxtecan) in combination with pertuzumab has been recommended for approval in the European Union (EU) for the first-line treatment of adult patients with unresectable or metastatic HER2 positive (immunohistochemistry [IHC] 3+ or in-situ hybridization [ISH]+) breast cancer. Enhertu is a specifically engineered HER2 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 Committee for Medicinal Products for Human Use (CHMP)
SLB Announces Second-Quarter 2026 Results24.7.2026 12:50:00 CEST | Press release
Revenue of $8.97 billion increased 3% sequentially and 5% year on year GAAP EPS of $0.52 increased 4% sequentially and decreased 30% year on year EPS, excluding charges and credits, of $0.55 increased 6% sequentially and decreased 26% year on year Net income attributable to SLB of $786 million increased 5% sequentially and decreased 22% year on year Adjusted EBITDA of $1.90 billion increased 7% sequentially and decreased 7% year on year Cash flow from operations was $1.36 billion and free cash flow was $716 million Board approved quarterly cash dividend of $0.295 per share SLB (NYSE: SLB) today announced results for the second-quarter 2026. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260722694386/en/ The exterior of the SLB headquarters in Houston, Texas.Second-Quarter Results(Stated in millions, except per share amounts)Three Months EndedChangeJun. 30, 2026Mar. 31, 2026Jun. 30, 2025SequentialYear-on-yearRevenue $8,972 $8
NIQ Expands GenAI Capabilities Across gfknewron, Turning Trusted Intelligence into Decisions Faster24.7.2026 12:30:00 CEST | Press release
New capabilities help businesses uncover trends faster, simplify complex analysis, and accelerate confident decision-making NIQ (NYSE: NIQ), a leader in consumer intelligence, today announced the expansion of AI-powered Smart Insights across its gfknewron® platform. By bringing together markets and categories into a single view, gfknewron enables businesses to transform complex market, consumer and supply chain data into clear, actionable intelligence quickly. The latest enhancements help users identify trends, opportunities and performance drivers more quickly, reducing the time required to analyze large datasets and accelerating confident decision-making across teams. As brands and retailers face growing pressure to respond quickly to changing consumer behavior and market dynamics, the ability to unlock meaningful insights from increasingly rich datasets has become a significant competitive advantage. As AI is only as effective as the intelligence behind it, Smart Insights helps busi
Thales to Strengthen Romania’s Airspace Protection With Twelve Ground Master 200 MM/A Radars24.7.2026 10:05:00 CEST | Press release
The Romanian General Directorate for Armaments and the French Direction Générale de l’Armement (DGA – the French defence procurement agency) have signed an agreement to supply twelve Thales GM200 Multi-Mission All-in-one (GM200 MM/A) radars to protect the Romanian airspace. This government-to-government agreement underlines the high level of partnership between France and Romania, within the framework of the European Union’s SAFE funding programme, in order to bolster Europe’s defence capabilities. The GM200 MM/A is part of Thales’ proven Ground Master radar family, which has already been deployed in over 40 countries, including now in Romania. In a context of growing collaboration between European nations to bolster collective security, the Romanian General Directorate for Armaments has just signed a landmark agreement with France’s Direction Générale de l’Armement (DGA) to acquire twelve Thales Ground Master 200 Multi-Mission All-in-one (GM200 MM/A) radars. This government-to-governm
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