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
Dompé Doses First Patient in Phase 3 Study of Cenegermin-bkbj in NAION14.7.2026 14:00:00 CEST | Press release
Non-arteritic anterior ischemic optic neuropathy (NAION) is a loss of blood flow to the optic nerve which causes spontaneous and rapid vision loss, for which there are currently no FDA-approved treatments. Given the substantial unmet need for effective treatments in NAION, in October 2025, Dompé was awarded a Commissioner’s National Priority Review Voucher (CNPV) by the US FDA to accelerate a potential Biologics License Application for intranasal nerve growth factor (NGF) in NAION. Dompé, a biopharmaceutical company with operations in Italy and the US, announced the first patient has been enrolled in a Phase 3 study of cenegermin-bkbj for the treatment of non-arteritic anterior ischemic neuropathy (NAION). Involving more than 130 centers globally, the Phase 3 trial, “Galassia-NAION-301” is a multicenter, double-blind study comparing cenegermin-bkbj against placebo in improving vision loss caused by NAION. “Our NGF R&D program continues to accelerate with our third clinical study of 202
CE-IVDR Mark for Hologic’s Aptima® HPV Test Expanded to Include Self-Collected Sample Claim in Cervical Cancer Screening14.7.2026 14:00:00 CEST | Press release
New indication in the European Union and the UK offers alternative method of screening especially for women who are not currently participating Hologic, Inc. announced today that its Aptima® HPV Assay received an expanded CE-IVDR marking in the European Union and the UK and is now approved for self-collected vaginal samples using the Aptima Multitest Specimen Collection Kit. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260714358586/en/ Hologic’s Aptima® HPV Assay and Aptima Multitest Specimen Collection Kit Cervical cancer is the fourth most common cancer in women but is largely preventable through HPV vaccination and regular screening.1 Evidence shows that organized screening and early detection reduces deaths from cervical cancer, with mortality reduction rates in Europe ranging from 41% to 92%.2 However, even in countries with an established cervical screening program, screening participation rates vary widely, from 25%
Cover Genius Raises USD $100M Backed by Vista Credit Partners, Reaching USD $1.9 Billion Valuation as it Advances AI-First Platform and Global Expansion14.7.2026 14:00:00 CEST | Press release
Accelerating the AI roadmap and next era of embedded protection Cover Genius, the global infrastructure for embedded protection, today announced a USD $100M capital raise, backed by Vista Credit Partners, a subsidiary of Vista Equity Partners and strategic financing partner focused on enterprise software. The raise values the business at USD $1.9 billion, advancing a new chapter for the company. Cover Genius operates a B2B2C embedded protection platform that connects 200+ partners with 50+ global insurance carriers to protect over 70 million end customers at the point of sale across travel, retail, ticketing and logistics. Unlike traditional insurers, Cover Genius dynamically adapts product design, pricing, and presentation in real time to match each merchant's unique customer journey and geography mix. “We’ve spent more than a decade building the trust layer the world’s largest digital companies rely on to protect their customers. Today’s raise is about broadening possibilities: movin
Esri to Debut the Power of Where Collection at 2026 Esri User Conference14.7.2026 14:00:00 CEST | Press release
New Titles Expand on Landmark Work to Showcase How GIS Drives Better Decisions Across Water and Land Management Esri will debut the Power of Where Collection at the 2026 Esri User Conference. The collection builds on the 2024 book The Power of Where by Jack Dangermond, extending its ideas into real-world GIS applications. New titles in the collection highlight GIS uses in water forecasting, land records, infrastructure planning, and economic development. The series demonstrates how spatial analysis helps organizations address challenges including sustainability, climate resilience, and governance. Esri, the global leader in location intelligence, will debut the Power of Where Collection at the 2026 Esri User Conference in July. The collection builds on the ideas introduced in The Power of Where: A Geographic Approach to the World's Greatest Challenges, by Esri president Jack Dangermond, published in 2024. The new collection expands these foundational concepts into focused, real-world a
Esri Introduces ArcGIS for ServiceNow, Bringing Location Intelligence into Everyday Enterprise Workflows14.7.2026 14:00:00 CEST | Press release
New Integration Connects Platforms, Enabling Real-Time Mapping Directly Within Existing Systems Esri is launching ArcGIS for ServiceNow, an integration that connects ServiceNow, the AI control tower for business reinvention, with ArcGIS, bringing location intelligence into everyday enterprise workflows. The solution supports organizations across commercial, government, health care, utilities, energy, telecom, and other sectors. Users can visualize incidents, assets, work orders, facilities, and other business data on maps in real time within ServiceNow or ArcGIS, improving decision-making and operational efficiency. The integration eliminates data duplication by enabling seamless data sharing between systems, bridging business records with geographic context. ArcGIS for ServiceNow will debut in beta shortly after Esri User Conference. Esri, the global leader in geographic information system (GIS) technology, has announced ArcGIS for ServiceNow, connecting the two platforms for the firs
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