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
Rimini Street Announces Fiscal Second Quarter 2026 Financial and Operating Results30.7.2026 22:03:00 CEST | Press release
Second Quarter Financial Highlights Include: Revenue of $111.1 million, up 6.7% year over year Adjusted Revenue of $108.0 million, up 10.0% year over year Remaining Performance Obligations (RPO) of $636.9 million, up 8.0% year over year Adjusted Annualized Recurring Revenue of $401.1 million, up 8.1% year over year Rimini Street, Inc., (Nasdaq: RMNI), a global provider of end-to-end enterprise software support, managed services and Agentic AI ERP innovation solutions, and the leading third-party support provider for Oracle, SAP and VMware software, today announced results for the fiscal second quarter ended June 30, 2026. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260730702735/en/ Rimini Street Announces Fiscal Second Quarter 2026 Financial and Operating Results “Second-quarter results and four consecutive quarters of improved growth metrics demonstrate strong demand for our core Rimini Support™ offering, increasing adop
Rimini Street Launches Rimini Govern™ for AI to Deliver Comprehensive AI Agent Governance, Security & Interoperability as a Service30.7.2026 22:01:00 CEST | Press release
The new service enables organizations to quickly and easily implement and operationalize a global, enterprise-wide governance, control, security and performance measurement solution for AI agent activity and workflows Rimini Street, Inc. (Nasdaq: RMNI), the Software Support and Agentic AI ERP Company™ and the leading third-party support provider for Oracle, SAP and VMware software, today announced the immediate availability of Rimini Govern™ for AI, the newest offering in the company’s Rimini Govern portfolio of Governance, Risk and Compliance (GRC) solutions. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260730389723/en/ Rimini Street Launches Rimini Govern™ for AI to Deliver Comprehensive AI Agent Governance, Security & Interoperability as a Service The new managed service is delivered 24/7/365 through Rimini Street’s Global Command Centers by expert AI engineers to help organizations: Accelerate AI agent deployment Reduc
One Biosciences Announces Data Validating New Method for Single-Cell Transcriptomic Tumor Profiling from Clinical Pathology Samples30.7.2026 21:03:00 CEST | Press release
Sample-to-report workflow generating single-cell RNA expression profiles using routine FFPE pathology slides from four institutions validated across 88 specimens and six cancer types One Biosciences, a techbio company pioneering clinical-grade single-cell tumor profiling, today announced data establishing that single-cell RNA expression profiles can be generated from the standard, formalin-fixed paraffin-embedded (FFPE) pathology specimens obtained in routine cancer care using the company’s proprietary platform, OneMap™. The study, conducted with collaborators at Centre Léon Bérard, Hôpital Bichat–Claude Bernard, Institut Curie, and Memorial Sloan Kettering Cancer Center, was released as a preprint on BiorXiv. “Every tumor is a unique ecosystem of many different types of cells, some cancerous, some not. Single cell profiling enables us to understand what those cells are, what they’re doing and potentially how that may impact treatment outcomes,” said Helena Yu, MD, thoracic medical onc
ARIS Recognized as a Leader in First Gartner® Magic Quadrant™ for Digital Twin of an Organization Platforms, Believes This Reinforces Need for Trusted Governance and Control of Enterprise AI30.7.2026 18:00:00 CEST | Press release
ARIS, the process context platform enabling enterprise AI deployment, today announced its recognition as a Leader in the inaugural Gartner Magic Quadrant for Digital Twin of An Organization (DTO) Platforms – where it believes agentic AI, autonomous workflows, and enterprise governance converge. As enterprises move from AI experimentation to autonomous agent deployment, a critical challenge emerges: how do you safely scale autonomous AI when the enterprise lacks a unified digital twin – a single source of truth for processes, data, governance, and outcomes? Gartner describes the DTO as a dynamic software model that relies on operational and contextual data to understand how an organization operationalizes its business model, connects with its current state, responds to changes, deploys resources, simulates future states and delivers customer value. "Enterprises are rightfully ambitious about agentic AI and autonomous workflows," said Guillaume Bacuvier, CEO of ARIS. "But they're discove
Kingswood Capital Management Raises $4 Billion Across Two Oversubscribed Middle-Market Funds30.7.2026 17:00:00 CEST | Press release
The firm’s fourth institutional fundraise more than doubles its assets under management, reaching over $7 billion Kingswood Capital Management, L.P. (together with its affiliates, “Kingswood”), a Los Angeles-based investment firm focused on the middle-market, today announced the final closing of Kingswood Capital Opportunities Fund IV, L.P. (together with its parallel fund, “Fund IV”), with total capital commitments of $3.1 billion, as well as Kingswood Capital Opportunities Small Cap Fund I, L.P. (together with its parallel fund, “Small Cap Fund I”), with total capital commitments of $900 million. These funds more than double Kingswood’s total assets under management (“AUM”) to over $7 billion. Fund IV represents the fourth institutional fundraise in five years for Kingswood and is more than double the size of Fund III. Both Fund IV and the inaugural Small Cap Fund I were significantly oversubscribed in just five weeks. Fund IV exceeded its initial target of $2.25 billion, while Small
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
