ISG
7.4.2022 10:02:07 CEST | Business Wire | Press release
Europe’s IT and business services market jumped out to a strong start in 2022, with record first-quarter demand for cloud-based services and continuing momentum 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 eclipsed US $7 billion for the first time in a quarter, coming in at a record US $7.5 billion, up 21 percent year over year, and up 8 percent sequentially from the fourth quarter.
“Europe’s combined market has been steadily growing as the region’s demand for cloud-based services catches up with the rest of the world,” said Steve Hall, president of ISG EMEA. “Growth slowed toward the end of last year, but has since bounced back to the levels we saw in the first half of 2021.”
Regional demand for cloud-based services (XaaS) continues to accelerate. ACV advanced 44 percent, to a record US $3.9 billion in the first quarter, and now accounts for 51 percent of the combined market, the highest proportion ever. It was the third straight quarter the region has seen XaaS growth of more than 40 percent.
Within the XaaS segment, infrastructure-as-a-service (IaaS) ACV soared 58 percent, to a record US $2.9 billion in the quarter. Software-as-Service (SaaS) advanced 15 percent, to US $1 billion, but was off 2 percent from a record fourth quarter.
Managed services ACV, meanwhile, rose 3 percent, to US $3.7 billion. It was the sixth straight quarter this segment surpassed US $3.4 billion of ACV, the longest such period of sustained high demand ever recorded by the ISG Index.
Within managed services, IT outsourcing (ITO) slumped 11 percent year over year, to US $2.7 billion, with sequential declines in financial services and energy, the latter amid a slowdown in the oil and gas sector. Business process outsourcing (BPO) soared 84 percent, to US $971 million, driven by strong demand across all industries and a mega-deal in the media and communications sector. Industry-specific BPO solutions in financial services and the utility sectors accounted for more than 30 percent of ACV growth in the quarter.
A record 256 managed services contracts were awarded in the first quarter, up 15 percent from last year and up 25 percent from the fourth quarter. New-scope awards dominated, with 176 such deals in the quarter, valued at US $2.3 billion. It was the sixth straight quarter new-scope ACV surpassed US $2 billion, a streak not seen in the last 10 years. The trend toward smaller contracts continued, with a record 151 deals in the US $5 million to US $10 million range, the smallest band measured by the ISG Index.
From a geographic perspective, the UK market continued its strong, post-Brexit recovery, exceeding US $1 billion in managed services ACV for the second quarter in a row and the third quarter in the last four. First-quarter ACV was US $1.1 billion, up 27 percent over the prior year. The Nordics (up 26 percent) and Southern Europe (up 93 percent) also contributed to the region’s growth.
DACH and France continued a recovery that began in the second quarter of 2021. Although both markets were down against a strong first quarter last year, DACH’s first-quarter ACV, at US $823 million, was up 33 percent sequentially from the fourth quarter, while France’s ACV of US $502 million, though down slightly versus the prior quarter, represented the fourth time in the last five quarters ACV topped US $500 million.
2022 Global Forecast
ISG is forecasting the global market for cloud-based XaaS (IaaS and SaaS) will grow 22 percent for the year, up from its 20 percent forecast last quarter, while the global market for managed services is expected to grow 5.1 percent, unchanged from last quarter’s forecast.
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 78 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/20220407005315/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
Great Britain Leads Europe’s FMCG Inflation as NIQ Launches New Inflation Barometer6.8.2026 09:00:00 CEST | Press release
NIQ (NYSE: NIQ) today launches its new EU5 FMCG Inflation Barometer - a monthly tracker across five Western Europe markets – France, Great Britain, Germany, Italy and Spain – designed to help retailers, manufacturers and the media understand how inflation is evolving across Europe’s largest grocery markets and how shoppers are responding. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260806579111/en/ EU5 CPG Inflation slows to +1.1% The first edition of the Barometer reveals that while inflation across Europe’s FMCG sector remains relatively contained overall, significant differences persist between countries. Key findings include: Great Britain recorded the highest FMCG inflation across the EU5 at +2.3%1, above the European average of +1.1%. France and Italy reported the lowest inflation at -0.4% and +0.6% retrospectively, highlighting the uneven inflationary landscape across Europe's major economies. The monthly Barometer
NTT DOCOMO BUSINESS and Chile’s State-owned Copper Company CODELCO Launch a Study and Proof of Concept Aimed at Improving the Efficiency of Remote Copper Mine Operations Using IOWN® APN6.8.2026 06:30:00 CEST | Press release
NTT DOCOMO BUSINESS, Inc. (formerly NTT Communications Corporation) has launched a study and proof of concept jointly with Corporación Nacional del Cobre de Chile (CODELCO) to progress remote operations at CODELCO’s copper mines using an IOWN® All-Photonics Network (APN).1 This initiative is part of a research project commissioned by Japan’s Ministry of Internal Affairs and Communications.2 This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260806845222/en/ Conceptual Diagram of the Demonstration To address operational challenges faced by CODELCO’s copper mines, the initiative will connect a copper mine and a remote operations center—approximately 1,500 km apart—via an IOWN APN. It will assess the feasibility of remotely operating heavy machinery using high-capacity, low-latency communication links, enhancing monitoring operations through high-definition video, and implementing a remote operations model. 1. Background Chile is o
FPT Named an OpenAI Select Partner6.8.2026 02:00:00 CEST | Press release
Global IT corporation FPT today announced that it has been named an OpenAI Select Partner within the OpenAI Partner Network. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260805503787/en/ FPT Named an OpenAI Select Partner The OpenAI Partner Network is a global program for partners to build, sell, and deliver AI solutions with OpenAI. It brings together partners with deep industry expertise, delivery capabilities, and customer relationships while equipping them with resources, enablement, and support to help enterprises adopt OpenAI frontier models and products and turn them into measurable impact. As an OpenAI Select Partner, FPT will continue working with OpenAI to help organizations build, deploy, and scale AI solutions responsibly and effectively. This work will help organizations get more useful work from every token and stronger performance per dollar with GPT‑5.6, while using ChatGPT Work to turn ambitious goals into
U.S. FDA Approves Takeda’s ORZEYFUL™ (oveporexton), the First and Only Medicine to Treat the Underlying Cause of Narcolepsy Type 16.8.2026 00:10:00 CEST | Press release
Adults Taking ORZEYFUL Experienced Significant and Meaningful Improvements Across the Full Range of Symptoms of Narcolepsy Type 1 (NT1) in Clinical Trials Compared to Those on Placebo As a First-in-Class Orexin Treatment, ORZEYFUL has the Potential to Redefine NT1 Care Beyond Individual Symptoms Takeda is Advancing U.S. Launch Preparations and Expects to Make ORZEYFUL Available Following Completion of the Drug Enforcement Administration (DEA) Scheduling Process Takeda (TSE:4502/NYSE:TAK) announced that the U.S. Food and Drug Administration (FDA) approved ORZEYFUL™ (oveporexton), an oral orexin receptor 2 (OX2R) agonist, for the treatment of narcolepsy type 1 (NT1, narcolepsy with cataplexy) in adults.* The persistent 24-hour nature of NT1 is driven by orexin deficiency and can severely impact people’s lives. As a first-in-class orexin treatment, ORZEYFUL is the only medicine indicated in the U.S. to treat the disease holistically rather than individual symptoms. “The FDA approval of OR
Compass Pathways Announces New Employee Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)5.8.2026 22:30:00 CEST | Press release
Compass Pathways plc (Nasdaq: CMPS), a biotechnology company dedicated to unlocking urgently needed new treatment options in mental health care, announced today that Compass granted equity awards under the Compass Pathways plc 2026 Inducement Plan to fourteen newly hired non-executive employees. The equity awards were granted on August 3, 2026 and consisted of options to purchase an aggregate of 139,355 shares and restricted share units or, in the case of employees in the United Kingdom nominal cost options, covering an aggregate of 66,300 shares. The options have an exercise price per share equal to $11.25, the closing price of the Company’s American Depositary Shares on the Nasdaq Global Select Market on the grant date, and will vest over a four-year period with 25% vesting on the first anniversary of the date of the grant and the remaining 75% vesting in equal monthly installments over the three-year period thereafter, subject to each employee’s continued employment. The restricted
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