ISG
18.7.2022 10:02:08 CEST | Business Wire | Press release
Europe’s IT and business services market delivered strong year-on-year growth in the second quarter, but showed signs of slowing amid rising economic concerns, 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 XaaS) eclipsed US $7 billion for the third straight quarter, coming in at US $7.6 billion, up 18 percent year over year, but down slightly (0.5 percent) from the first quarter.
“Demand for cloud computing and other technology services remains strong in Europe, as companies in the region continue to expand their digital transformation initiatives,” said Steve Hall, president of ISG EMEA. “The slight dip from the first quarter may signal some concerns about inflation and other economic pressures, but ebbs and flows in this market are not uncommon.”
During the second quarter, regional demand for XaaS topped US $3.5 billion for the fourth consecutive quarter – reaching US $3.8 billion, up 27 percent from the prior year, but down 3 percent from the first quarter. Within this segment, infrastructure-as-a-service (IaaS) advanced 30 percent, to US $2.8 billion, and software-as-a-service (SaaS) grew 19 percent, to US $962 million, although both were down quarter on quarter – by 3 percent and 4 percent, respectively.
“This was a noticeable step down from the 40 percent to 50 percent year-on-year XaaS growth we’ve been seeing the last several quarters, and the weakest quarter-on-quarter performance we’ve seen since the midst of the pandemic in 2020,” Hall said.
Managed services ACV, meanwhile, continued its growth trend, reaching US $3.9 billion, up 10 percent year on year and 3 percent quarter on quarter. It was the fifth quarter in the last seven managed services generated ACV greater than US $3.5 billion. Within this segment, IT outsourcing (ITO), at US $2.9 billion, was up 1 percent year on year, and up 4 percent from the first quarter. In particular, there was strong demand for application development and maintenance (ADM) services, up 17 percent year over year and 29 percent from the first quarter. Business process outsourcing (BPO) soared 47 percent, to US $968 million, on the strength of industry-specific services, but was down 1 percent quarter on quarter.
Contracting activity was ‘vigorous,” Hall said. “Six mega-deals [contracts worth US $100 million or more] were inked this quarter, the most in a quarter in more than five years.”
Overall, 243 managed services contracts were awarded in the second quarter, up 7 percent from the prior year, but down a like amount from the first quarter. It was the second-best quarter ever for deal activity in EMEA, surpassed only by the first quarter this year. ACV of new-scope contracts was up 8 percent from last year, the most new-scope ACV awarded since the first quarter of 2012.
From a geographic perspective, Benelux, France and Southern Europe posted double-digit managed services growth year over year, while DACH and the Nordics declined. The U.K. also was down but still generated more than US $1 billion of ACV for the third consecutive quarter. This level of ACV, until recently, had been a once-a-year occurrence since Brexit, but the U.K. is now seeing a more sustained level of contracting.
First-Half Results
EMEA’s combined market reached a record US $15.2 billion of ACV in the first half, up 20 percent over the prior year. XaaS advanced 35 percent, to a record US $7.6 billion, accounting for slightly more than 50 percent of the combined market. Managed services also generated a record US $7.6 billion of ACV, up 8 percent, on record volume of 506 contracts, up 13 percent versus the prior year.
2022 Global Forecast
With the potential for continued economic uncertainty, ISG lowered its 2022 global growth forecast for cloud-based XaaS (IaaS and SaaS) to 18 percent, from 22 percent a quarter ago, and reduced its global growth forecast for managed services to 3.5 percent, from 5.1 percent in the first quarter.
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 79 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 800 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/20220718005174/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
Debiopharm’s Pre-Clinical Proof-Of-Concept Research Unveils the Potential of Novel MultiLINK Linker Technology to Overcome Tumor Resistance14.10.2026 14:00:00 CEST | Press release
Despite the remarkable progress made by ADCs, many cancer patients continue to face disease progression due to treatment resistance, tumor heterogeneity, and dose-limiting toxicities At World ADC 2026 San Diego, Debiopharm presented their latest ADC innovation to overcome these challenges with novel linker-payload technology, including modular dual payload linker MLINK DUO and modular cathepsin B-cleavable linker MLINK Select Research results with various MultiLINKTM Linker Technologies showcased broadening of vedotin-based ADC therapeutic index for MLINK Select ADCs, synergistic antitumor activity with MLINK Duo, and homogeneous DAR8 conjugation with MLINK HiSol Debiopharm (www.debiopharm.com), a privately-owned, Swiss-based biopharmaceutical company aiming to establish tomorrow’s standards of care to cure cancer and infectious diseases, today announced their latest research on antibody drug conjugate (ADC) research released at World ADC San Diego 2026. Results highlighted the pre-cli
Responsible AI for Children: IEEE Delivers a Trusted Safety Formula to Help Protect Kids Online14.10.2026 14:00:00 CEST | Press release
With children’s AI exposure surging, IEEE Standards Association certification helps ensure AI products for kids are ethically designed, independently tested and continually accountable for safety and well-beingFirst product certification issued to educational platform from Greek National Centre for Scientific Research The IEEE Standards Association, the global, consensus-building standards development organization of IEEE – the world’s largest technical professional organization and public charity dedicated to advancing technology for the benefit of humanity – today advanced its Responsible AI for Children (RAIC) Certification Program with the first product certified for children’s online safety. As children increasingly engage with digital and AI-enabled technologies, parents, educators, developers, and regulators want tools they can trust. IEEE’s Responsible AI for Children (RAIC) certification directly addresses these needs by translating global technical standards into a practical
Takeda Presents Phase 2/3 IgGNITE Study Results of Investigational Subcutaneous TAK-881 in Primary Immunodeficiency Disease (PID) at ESID 202614.10.2026 14:00:00 CEST | Press release
− TAK-881 met its primary endpoint, demonstrating pharmacokinetic comparability to HYQVIA® in patients 16 years and older − TAK-881 may shorten infusion times and offer the opportunity for fewer required infusion sites compared to HYQVIA with 50% less volume while maintaining up to once-monthly dosing − Adult infection outcomes and safety and tolerability profiles were comparable to HYQVIA based on descriptive analyses and consistent with established IG therapy standards Takeda (TSE:4502/NYSE:TAK) announced detailed results from the pivotal Phase 2/3 IgGNITE clinical trial (TAK-881-3001) evaluating investigational TAK-881 [Immune Globulin Subcutaneous (Human), 20% Solution (SCIG 20%) and Recombinant Human Hyaluronidase], which, if approved, has the potential to become the first facilitated SCIG 20% therapy for patients with Primary Immunodeficiency Disease (PID) administered up to once-monthly (every 3 to 4 weeks). Data in participants aged 16 years and older are featured in two late-b
Datavault AI Appoints Shareholder and Investment Executive Jeffrey Tirman to the Boardof Directors14.10.2026 13:55:00 CEST | Press release
Tirman, through his family office Abri Capital Ltd., holds 26 million DVLT shares and brings over 35 years of international investment management and corporate restructuring experience to the Company Datavault AI Inc. (“Datavault AI” or the “Company”) (Nasdaq: DVLT), an Artificial Intelligence Platform (“AIP”) company providing data monetization, credentialing, and real-world asset (“RWA”) tokenization, today announced the appointment of Jeffrey Tirman to its Board of Directors, effective as of October 12, 2026. Mr. Tirman was designated by NYIAX, Inc. (“NYIAX”) in connection with Datavault AI's recently completed acquisition of NYIAX, and he previously served on NYIAX's board of directors. As a Datavault AI Shareholder, Mr. Tirman brings both an ownership perspective and extensive management experience to the Board. Mr. Tirman has more than 35 years of international investment management experience, focused on corporate transformation, capital strategy and value creation. He has led c
EZO Reaches Financial Close on €150 Million Senior Debt Facility14.10.2026 13:21:00 CEST | Press release
Investment-grade, non-recourse financing will support the delivery of more than 3,000 charge points primarily across the whole of the UK along with additional development in Ireland. EZO has reached financial close on a €150 million investment-grade, non-recourse, senior debt facility. The funding will finance the design, installation, operation and maintenance of over 3,000 charge points, representing over 100,000 kWs of capacity, across the UK and Ireland under mostly long-term public sector “PPP-like” concessions with an attractive risk allocation between the public and private sector that will significantly advance EV infrastructure delivery, on time and to budget. These charge points are estimated to generate well in excess of £1 billion in electricity sales over the next 20 years, a portion of which will be shared with the public sector while, at the end of the concession, the chargers will revert back to the public sector. Headquartered in Ireland, EZO has expanded rapidly into
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