CT-ISG
13.7.2021 11:02:05 CEST | Business Wire | Press release
Growing adoption of cloud-based services is propelling the expansion of the European IT and business services market, with the region setting a new record for as-a-service spending in the second quarter, 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, which includes both as-a-service and managed services, reached US $6.3 billion, up 31 percent against a soft quarter last year during the onset of the pandemic, and up 4 percent against the first quarter of 2021. It was the third consecutive quarter that combined market ACV exceeded the US $6 billion mark, with this quarter nearly matching the record established in fourth quarter last year.
Cloud-based as-a-service spending soared 41 percent over last year, and 15 percent from Q1, to a record US $2.9 billion, and now represents 46 percent of the combined market, a record high.
“Europe has traditionally lagged behind other regions in its adoption of cloud-based services but now growth is accelerating,” said Steven Hall, president of ISG EMEA. “COVID-related digital transformation has advanced cloud adoption by three to five years, and as-a-service ACV will soon surpass 50 percent of the market. We are near a tipping point.”
Within the as-a-service segment, infrastructure as-a-service (IaaS) climbed 47 percent (18 percent quarter over quarter), to a record US $2.2 billion, while software-as-a-service (SaaS) rose 27 percent (5 percent quarter over quarter), to a record US $722 million.
Managed services, at US $3.4 billion, was down 4 percent quarter over quarter, its second straight quarterly decline, although it was up 23 percent over a soft Q2 a year ago. Deal activity for the quarter was at a record 217 contracts, amid a flurry of mid-range deals between US $20 million and US $40 million. IT outsourcing (ITO) generated US $2.8 billion of ACV, up 18 percent, and business process outsourcing (BPO) produced US $611 million of ACV, up 54 percent.
For the first half of 2021, the combined market generated a record US $12.3 billion of ACV, up 25 percent. As-a-service, at a record US $5.4 billion, was up 27 percent, and managed services, at a record US $6.9 billion, was up 23 percent. Within as-a-service, IaaS reached a record US $4.0 billion, up 33 percent, and SaaS hit a record US $1.4 billion, up 13 percent. On the managed services side, ITO was at a record US $5.8 billion, up 18 percent, on a record 353 transactions, with strength in ADM and infrastructure. BPO reached US $1.1 billion, up 60 percent, spurred by demand for finance and accounting and engineering services.
Deal Activity
Among the significant ITO awards in the second quarter, HCL won a contract with a multinational oil and gas company for end-user computing services. TietoEVRY also won a three-year, €200 million contract with DNB Bank in Norway.
In BPO, notable deals this quarter included Cognizant’s agreement with a U.K.-based automotive, distribution and retail firm to transform its finance and accounting infrastructure, and Capita’s three-year customer management deal with Tesco Mobile. ISS Group signed a two-year contract extension with Rolls Royce.
In IaaS, GCP signed a large deal with LVMH this quarter to develop new cloud-based AI and machine learning solutions. And AWS inked a contract with Ferrari to become its official cloud, machine learning and AI provider.
In SaaS, Microsoft landed Dynamics 365 contracts with ABN AMRO Bank and BMW, and signed Power BI agreements with Daimler, AB InBev, Dentsu and Swiss Re. Sanofi signed with Microsoft to use Teams.
Market Insights
Among geographic markets for managed services in the second quarter, France grew the most, up 44 percent from the prior year, to US $295.5 million of ACV. The UK and Ireland, the region’s largest managed services market in Q2, at US $1.2 billion, was up 33 percent over the prior year.
The DACH market, meanwhile, generated US $806 million of managed services ACV in Q2, up 17 percent over the prior year, and the Nordics generated US $405 million of ACV, up 15 percent.
Only Benelux and Southern Europe saw pullbacks in managed services ACV versus last year.
2021 Global Forecast
ISG is forecasting the market for cloud-based services (IaaS and SaaS) will grow 21 percent globally in 2021, up from its 18 percent growth forecast last quarter. The firm also is raising its forecast for managed services growth to 9 percent, up from its prior forecast of 5 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 75 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/20210713005319/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