ISG
12.1.2022 10:02:06 CET | Business Wire | Press release
Europe’s technology and business services market reached a record high in 2021, but showed signs of slowing in the fourth 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 (XaaS) and managed services, reached a record US $26.5 billion for the year, up 23 percent, the region’s highest annual growth rate ever.
Managed services climbed 11 percent, to US $13.9 billion—its highest level in a decade—including a record US $11.4 billion for IT outsourcing (ITO), up 5 percent, and US $2.6 billion for business process outsourcing (BPO), up 45 percent. XaaS soared 41 percent, to a record US $12.6 billion, on 44 percent growth in infrastructure-as-a-service (IaaS), to a record US $9.2 billion, and 33 percent growth in software-as-a-service (SaaS), to a record US $3.4 billion.
The record performance for the year extended to the fourth quarter, although the closing period showed signs of slowing demand. Combined ACV rose 9 percent, to US $7.1 billion—the first time it has broken through the US $7 billion level in a quarter. EMEA’s fourth-quarter growth rate, however, was its lowest in 2021, and was up only 4 percent versus the third quarter.
“Despite signs of a slowdown last quarter, EMEA appears to be on a solid upward trajectory overall. Combined market ACV has stayed above US $5 billion per quarter since mid-2020, including four consecutive US $6 billion quarters and the latest quarter topping US $7 billion,” said Steve Hall, president of ISG EMEA.
In the fourth quarter, the XaaS market reached a record US $3.6 billion of ACV, up 55 percent over the prior year. IaaS also grew 55 percent, to a record US $2.6 billion, while SaaS jumped 57 percent, to a record US $952 million.
Meanwhile, the managed services market saw some choppiness in the fourth quarter. At US $3.5 billion, ACV was down 16 percent versus the prior year, but up 2 percent over the third quarter. There were 205 contracts awarded in the quarter, up 10 percent over the prior year. Within the segment, ITO was down 19 percent, to US $3 billion, against the prior year, but up 19 percent versus the third quarter. Meanwhile, BPO, at US $499 million, was 2 percent ahead of the prior year, but down 44 percent against the third quarter.
“Managed services posted a fifth consecutive quarter of ACV over US $3.4 billion. While down year over year, it is worth noting the fourth quarter of 2020 included several very large mega-deals,” Hall said. “We are seeing an unprecedented level of sustained contracting activity in EMEA. The past four quarters have each registered at least 200 awards.”
Market Insights: Managed Services
Most of the region’s geographic markets saw sizable annual increases in managed services ACV, except for its two largest markets—the U.K. and DACH (Germany, Austria and Switzerland). France, the Middle East and Eastern Europe all hit record highs for the year.
The U.K. rose moderately for the year, with ACV up 2 percent, to US $3.6 billion, powered by strong growth in all but the third quarter, including two quarters (the second and fourth) with more than US $1 billion of ACV. In the fourth quarter, ACV rose 34 percent, to US $1.2 billion. Application development and maintenance (ADM) ACV rose more than 20 percent for the year, while legacy infrastructure ACV fell by 2 percent.
DACH declined 29 percent, to US $3.0 billion, for the full year. The market remained in positive territory for much of 2021 but turned negative in the fourth quarter (down 70 percent) on a difficult comparison with the fourth quarter of 2020, which saw a number of large awards, including deals with Daimler, Siemens and Postbank. For the year, ACV for ADM was up 14 percent but infrastructure ACV was down more than 70 percent against a difficult prior-year comparison.
“In addition to a difficult compare, DACH was also impacted by supply chain disruptions and a slowdown in global consumer spending, which led to an extension of existing scope and a pause in larger transformation deals,” Hall said.
France posted four straight quarters of year-over-year growth to finish 2021 with a record US $2.2 billion of ACV, up 82 percent. In the fourth quarter, ACV was US $513 million, up 11 percent versus the prior year. For the year, France saw elevated levels of ITO spending, with ACV up more than 70 percent in ADM and 26 percent in infrastructure.
2022 Global Forecast
ISG is forecasting the global market for cloud-based XaaS (IaaS and SaaS) will grow 20 percent, at the lower end of the 20 percent to 25 percent range in recent years, and the global market for managed services will advance 5.1 percent in 2022, well ahead of the 2 percent average annual growth from 2010 through 2020.
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 77 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/20220112005341/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
IQM Announces Novel Quantum Error Correction Approach Toward Fault-Tolerant Quantum Computing9.6.2026 09:00:00 CEST | Press release
New approach delivers cutting edge performance, while significantly reducing hardware complexity IQM Quantum Computers, the global leader in superconducting quantum computers, has developed a novel quantum error-correcting code that achieves up to three orders of magnitude lower logical error rates than the surface code, also requiring up to eight times fewer physical qubits. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260609533201/en/ IQM´s breakthrough technology, called barbell codes. Unlike many alternative high-performance quantum error-correction approaches, the new code also maintains a comparatively low hardware complexity, marking a significant advancement toward scalable fault-tolerant quantum computing. Quantum error correction remains one of the defining challenges in the race toward practical quantum computing. Errors introduced by noise must be corrected faster than they accumulate, a requirement that previo
Estonia Raises the Bar for Secure Digital Identity in Europe With New eID Cards Developed With Thales9.6.2026 09:00:00 CEST | Press release
The Estonian Police and Border Guard Board has begun the issuance of the country’s new electronic identity (eID) cards, marking a major milestone in the ongoing modernisation of Estonia’s renowned digital identity programme. This new generation of cards has been developed in partnership with Thales under an eight-year contract covering the full lifecycle of national identity documents - from issuance to personalisation -for residents, citizens, and specific groups such as diplomats or refugees. The advanced eID cards1 feature cutting-edge embedded security elements that can be upgraded to counter emerging cyber threats, ensuring citizens’ digital transactions remain protected over time. With increasing cyber risks and the rapid evolution of digital public services, Estonia is reinforcing the security, durability and adaptability of the documents that underpin its digital society: identity cards, residence permit cards, e-resident digital identity cards, diplomatic identity cards, certi
Longpoint Expands into Germany and the Netherlands, Targeting €400 Million of Infill Logistics Investment9.6.2026 09:00:00 CEST | Press release
Firm appoints Gijs Vissers and Benedict Stichel as country heads to lead growth across two key European logistics markets Longpoint Partners today announced its expansion into Germany and the Netherlands, extending its infill industrial strategy into two of Europe’s most supply-constrained logistics markets. The firm is establishing a presence in high-demand locations, including Düsseldorf, Frankfurt, and the Randstad, and plans to deploy approximately €400 million into logistics assets near major population centers and transportation corridors. “We are excited to expand Longpoint’s infill industrial strategy into Germany and the Netherlands,” said Dwight Angelini, Founding and Managing Partner of Longpoint Partners. “These are highly attractive logistics markets with strong fundamentals, limited supply, and a clear need for high-quality light industrial and logistics space. With Gijs and Benedict leading our local efforts, we have the market knowledge, relationships, and discipline to
ISO/TC 251 Recognizes Ampowr as the Only BESS Operator With a Fully Integrated ISO Stack9.6.2026 09:00:00 CEST | Press release
ISO/TC 251 and NEN, the Netherlands national standards body, profile Ampowr alongside Rijkswaterstaat, the US Army Corps of Engineers, Novo Nordisk and Veolia after an in-depth methodology interview with Executive Director Andrew Elwell. ISO/TC 251, the international technical committee that authors the ISO 55000 family of asset management standards, has published a case study profiling Ampowr's integrated certification methodology. Authored by NEN, the Dutch national standards body, the study is now publicly available in the ISO/TC 251 case studies library alongside profiles of Rijkswaterstaat, the US Army Corps of Engineers, Novo Nordisk, and Veolia. ISO/TC 251 approached Ampowr directly. NEN subsequently conducted an in-depth interview with Executive Director Andrew Elwell, examining how Ampowr operates its five certifications (ISO 9001, ISO 14001, ISO 45001, ISO 27001 and ISO 55001), as a single integrated system rather than separate compliance silos. "To our knowledge we are the o
Bial Reports Topline Results From ACTIVATE Phase 2b Study in GBA‑Associated Parkinson’s9.6.2026 08:00:00 CEST | Press release
Bial, an innovation-driven biopharmaceutical company focused on neurosciences and rare diseases, announced today that the Phase 2b ACTIVATE study of BIA 28-6156 (pariceract) in patients with Parkinson’s who have a pathogenic variant in the GBA1 gene (GBA-PD) did not meet its primary, nor the key secondary efficacy endpoints, meaning that BIA 28-6156 failed to slow the progression of GBA-PD versus placebo. BIA 28-6156 proved to be generally well tolerated in the study, with no unexpected safety concerns arising. While the study data provide valuable scientific information and contribute to a broader understanding of Parkinson’s biology, BIA 28-6156 did not demonstrate significant differentiation from placebo on the primary or key secondary endpoints measured. Based on the lack of demonstrated efficacy in this study, Bial has made the decision to discontinue further development of BIA 28-6156 for this indication. “We are disappointed with the outcome of the Phase 2b ACTIVATE study, as th
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