ISG
13.4.2021 10:02:11 CEST | Business Wire | Press release
The European market for IT and business services remains robust, with record demand for cloud-based services in the first quarter and continued strength 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 US $5 million or more, shows ACV for the combined market, which includes both as-a-service and managed services, reached US $6.0 billion, up 20 percent year on year, but off 5 percent from a record fourth quarter.
Cloud-based as-a-service ACV reached a quarterly record of US $2.5 billion, up 16 percent versus the prior year. Within this segment, infrastructure-as-a-service (IaaS) climbed 19 percent, to a record US $1.8 billion, while software-as-a-service (SaaS) rose 9 percent, to a record US $658 million.
Managed services, meanwhile, produced its second straight strong quarter, with ACV of US $3.5 billion, up 23 percent year on year, fueled by growth in both IT outsourcing (ITO) and business process outsourcing (BPO) and strong results in the UK, France and DACH. ITO was up 17 percent year on year, to US $3.0 billion, on strength in both ADM and infrastructure services, while BPO surged 66 percent, to US $521 million, on strong demand for industry-specific, finance and accounting, and engineering and R&D services.
“EMEA has produced two consecutive quarters with US $6 billion or more of ACV, adding more than US $1.4 billion from its pandemic low,” said Steve Hall, president, ISG EMEA. “Importantly, the region is seeing strength in both the as-a-service segment, as more and more enterprises adopt a public or hybrid cloud strategy, and on the managed services side, which is experiencing a resurgence.”
Hall pointed out that three of the four mega-deals (those with ACV of US $100 million or more) in the first quarter were awarded in the EMEA region. “That brings the total to eight mega-deals over the last two quarters; you have to go back to early 2017 to find a two-quarter period in EMEA that had more mega-deals awarded.”
Among significant IT awards in the first quarter, Mphasis contracted with Ardonagh Group, the U.K. independent insurance broker, to support its digital transformation. On the infrastructure side, Atos won a large digital workplace contract with telecom company Wind Tre in Italy, and HCL inked a five-year digital workplace services agreement with Airbus, the European aerospace manufacturer.
Within the BPO space, KPIT signed significant engineering services deals with BMW and automotive technology company Veoneer to support work on autonomous driving and intelligent mobility. ISS Group, meanwhile, secured an eight-year extension with Barclays in the U.K. to provide integrated facility and workplace services across the bank’s operations in 30 countries.
With the automotive sector becoming a battleground for major public cloud providers, BMW Group announced it is migrating workloads to AWS, joining automakers Renault and Volkswagen on AWS. In the travel sector, ISG advised on one of the biggest cloud deals in the region this quarter with the signed agreement between global travel technology company Amadeus and Microsoft Azure.
In the SaaS segment, Microsoft signed deals this quarter with Daimler, GlaxoSmithKline and IKEA, while Oracle secured contracts with NatWest Group to standardize its various banks on Oracle Fusion in the cloud.
Market Insights
The DACH market generated more than US $1 billion of managed services ACV in the first quarter, up 13 percent over the prior year. It was the second consecutive quarter DACH ACV was above US $1 billion mark—about a third higher than its historic norm. DACH now accounts for nearly 30 percent of managed services ACV in the EMEA region.
Managed services ACV in the UK reached US $866 million, up 20 percent over the prior year. It was the fourth consecutive quarter the UK generated managed services ACV in excess of US $800 million, represented a sustained rebound for the market, but still below the US $1 billion quarters that were typical prior to 2017 and the onset of Brexit uncertainty.
France, meanwhile, had its best ACV quarter since 2014, with managed services ACV of US $595 million, up nearly 2.5 times from US $243 million in the prior year, with nearly 40 deals reached in the quarter.
2021 Global Forecast
ISG is forecasting the global market for cloud-based services (IaaS and SaaS) will grow 18 percent in 2021, down slightly from its 20 percent forecast at the start of the year. ISG, meanwhile, has raised its growth forecast for managed services to 5 percent, up from 3 percent at the start of the year.
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 74 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/20210413005463/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
Ouster Releases The REV8 OS Family: The World’s First Native Color Lidar4.5.2026 12:00:00 CEST | Press release
Powered by the Company’s breakthrough L4 and L4 Max Ouster SiliconFeatures the first patented native color lidar sensors with point for point 3D color visionIntroduces flagship OS1 Max sensor with double the range and resolution of Rev7Auto-grade, cybersecure, and designed for functional-safety Ouster, Inc. (Nasdaq: OUST) (“Ouster” or the “Company”), a leader in sensing and perception for Physical AI, announced today its new family of OS digital lidar sensors, Rev8, powered by its next-generation L4 Ouster Silicon. Ouster Rev8 features the world’s first patented native color lidar sensors, provides up to double the range and resolution of the previous generation, and is designed for functional safety, reliability, affordability, and scale. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260504718668/en/ The REV8 OS Family: The World's First Native Color Lidar. L4 Ouster Silicon: Ouster’s breakthrough L4 architecture doubles t
NIQ Research Reveals New Rules of Commerce: AI Is Beginning to Decide What Consumers Buy4.5.2026 12:00:00 CEST | Press release
NIQ’s latest global report—The Commerce Revolution: Where East Meets West—examines how commerce intelligence is helping brands, retailers, and platforms navigate a rapidly converging global landscapeAI is rapidly becoming the buyer, not just the tool—reshaping how products are discovered, chosen, and purchasedThe next wave of retail growth isn’t coming from traditional e‑commerce, but from live, social, quick, and AI‑driven commerce models scaling from East to West NielsenIQ (NYSE: NIQ) has announced the release of its new global report, The Commerce Revolution: Where East Meets West, which examines how Eastern-led commerce innovation and Western retail media monetization are colliding to reshape global consumer commerce. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260428841965/en/ The report finds live, social, and quick commerce—long scaled across Asia—now drive most incremental digital growth worldwide, while Western m
OPAQUE Acquires Abu Dhabi-Developed Cryptographic AI Technology from TII, Extending Confidential AI Across the Full Lifecycle with Post-Quantum Protection4.5.2026 10:23:00 CEST | Press release
New capabilities make it possible to safely deploy AI agents on the most sensitive and regulated data — with hardware-enforced, verifiable rules and cryptographic guarantees built to withstand quantum computing OPAQUE, the Confidential AI company headquartered in San Francisco, California, today announced it has acquired advanced cryptographic AI technologies from the Technology Innovation Institute (TII), the applied research pillar of Abu Dhabi's Advanced Technology Research Council (ATRC). The acquired technology — already proven in real-world use cases — adds two critical capabilities to OPAQUE's platform: confidential AI model training powered by advanced cryptographic techniques such as multi-party computation and fully homomorphic encryption, as well as post-quantum cryptographic protections. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260504705475/en/ OPAQUE Acquires Abu Dhabi-Developed Cryptographic AI Technology
Forbes Includes Philip Morris International in Its Net Zero Leaders List4.5.2026 10:00:00 CEST | Press release
PMI ranks number 4, marking its fourth consecutive year of recognition for making significant strides toward reaching net zero carbon footprint goals Philip Morris International (PMI) (NYSE: PM) has been included once more in Forbes’ 2026 Net Zero Leaders1 list, recognizing its leadership and continued progress in advancing climate action across its global operations. The Forbes Net Zero Leaders list highlights U.S. publicly listed companies best positioned to achieve net zero emissions by 2050, based on measurable performance rather than commitments alone. Despite most companies aligning to a 2050 net zero horizon, PMI remains committed to reaching net zero by 2040, as set out in its Climate Transition Plan published in 2025. This aspiration reflects PMI’s confidence in collective progress, trust that ambition drives innovation, that policy will evolve to enable change, and collaboration will accelerate system‑wide transformation. Above all, it signals hope: that by acting early and h
Mobius Renewables Acquires Air Liquide’s Biogas Production Activities in the United States, France, Norway, and Sweden4.5.2026 08:45:00 CEST | Press release
Mobius Renewables today announced the closing of the acquisition of Air Liquide’s biogas production activities in the United States, France, Norway, and Sweden. The acquisition includes six operating landfill gas-to-RNG (Renewable Natural Gas) sites in the U.S., five operating farm waste sites in France, and a 51% interest in Redo Biosolutions with production and distribution assets across Norway and Sweden. The acquired portfolio will be a meaningful addition to Mobius Renewables (“the Company”), a global, vertically integrated low carbon fuels platform established in December 2025 by funds managed by IFM Investors to accelerate the development, production, distribution, and commercialization of RNG at scale across North America and Europe. The Company is headquartered in Houston, Texas with additional offices in the United States, France, Norway, and Sweden. With this transaction, the establishment of Mobius Renewables is complete, and GreenGasUSA and the acquired portfolio will oper
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