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
Galderma Receives U.S. FDA Approval for Differin® Epiduo® Acne Gel Prescription-to-OTC Switch22.5.2026 18:25:00 CEST | Press release
A unique Prescription-to-OTC switch in acne care, this approval expands access to a dermatologist-trusted, prescription-strength treatment for millions of acne sufferers ages 12 years and older Backed by more than 15 years of real-world dermatologist use and a robust clinical research program, this milestone demonstrates the depth of science behind the Differin® and Epiduo® heritage Adapalene plus benzoyl peroxide (0.1/2.5%) was the first FDA-approved, stable, fixed- dose prescription acne treatment to combine of benzoyl peroxide with a retinoid, and is now available over-the-counter The formulation is engineered to target multiple causes of acne more effectively than either of its individual active ingredients alone Galderma (SIX: GALD), the pure-play dermatology category leader, today announced that the United States (U.S.) Food and Drug Administration (FDA) has approved Differin® Epiduo® Acne Gel (Adapalene 0.1% and Benzoyl Peroxide 2.5% Acne Treatment) for over-the-counter (OTC) us
Avanzanite Bioscience’s Partner Agios Announces PYRUKYND® (mitapivat) Approval in the European Union for Adults with Thalassaemia22.5.2026 16:18:00 CEST | Press release
Avanzanite will commercialise and distribute PYRUKYND in Europe under its exclusive agreement with Agios Avanzanite is committed to collaborating with local authorities in the EU to enable access to PYRUKYND for adult patients with thalassaemia Avanzanite Bioscience B.V., a rapidly growing commercial-stage European specialty pharmaceutical company focused on rare diseases, today reported that its partner, Agios Pharmaceuticals, Inc. (Nasdaq: AGIO), a commercial-stage biopharmaceutical company headquartered in Cambridge, Massachusetts focused on delivering innovative medicines for patients with rare diseases, announced that the European Commission has granted marketing authorisation for PYRUKYND® (mitapivat), an oral pyruvate kinase (PK) activator, in adults for the treatment of anaemia associated with transfusion-dependent and non-transfusion-dependent alpha- or beta-thalassaemia, with an orphan medicinal product designation. This press release features multimedia. View the full releas
ICE Brent and ICE WTI Perpetual Futures to Launch on OKX22.5.2026 14:30:00 CEST | Press release
OKX, a blockchain technology and trading company serving more than 120 million customers globally,and Intercontinental Exchange (NYSE: ICE), one of the world's leading providers of financial market technology and data powering global capital markets including the New York Stock Exchange, today announced plans for OKX to launch perpetual futures based on ICE's Brent Crude and WTI Crude energy benchmarks. The products are expected to be available to trade on OKX’s platform in jurisdictions where OKX is licensed to offer perpetual futures products. The new OKX contracts represent a major step forward in expanding regulated access to global commodity markets through digital asset infrastructure. This first product collaboration between OKX and ICE comes after the companies established a strategic relationship in March 2026. ICE operates some of the world’s leading exchanges, clearing houses and market data services across energy, commodities, fixed income and equities markets. ICE’s future
Enhertu® Recommended for Approval in the EU by CHMP for Patients with Previously Treated HER2 Positive Metastatic Solid Tumors22.5.2026 14:00:00 CEST | Press release
Enhertu® (trastuzumab deruxtecan) has been recommended for approval in the European Union (EU) as a monotherapy for the treatment of adult patients with unresectable or metastatic HER2 positive (immunohistochemistry [IHC] 3+) solid tumors who have received prior treatment and who have no satisfactory treatment options. 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) of the European Medicines Agency (EMA) based its positive opinion on results from patients with HER2 positive (IHC 3+) tumors in three phase 2 trials including DESTINY-PanTumor02,DESTINY-Lung01 andDESTINY-CRC02 where Enhertu demonstrated clinically meaningful responses across a broad range of tumors. The recommendation will now be reviewed by the European Commission, which has the authority
Future Health Challenge Awards USD 300,000 to Early Detection and Population Health Sensing Tools on Sidelines of World Health Assembly22.5.2026 13:45:00 CEST | Press release
Global teams recognised in the Future Health Challenge for solutions designed to detect health risks earlier and support faster health system decisions Future Health – A Global Initiative by Abu Dhabi and MIT Solve announce the winners of the inaugural Future Health ChallengeWinning solution equips frontline health workers in low-resource settings with mobile clinical decision-support tools, enabling earlier detection and more effective care deliveryTeams competed for a USD 200,000 grand prize and two USD 50,000 runner-up awards on the sidelines of the 79th World Health Assembly in GenevaWinners recognised for solutions advancing anticipatory, data-driven health systems Three global teams developing early detection and real-time population health monitoring solutions have secured a total of USD 300,000 on the sidelines of the 79th World Health Assembly. The winning solutions address critical challenges in early detection, continuous population insight and more timely decision making, s
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