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
Objectway Expands Into Capital Markets With Its Project to Acquire French Specialist SLIB, Pushing Forward Its Pan-European Growth Strategy27.7.2026 08:45:00 CEST | Press release
Strong complementary offering and expertise create new opportunities for strengthening strategic presence in France and broadening end-to-end proposition across key European markets.Key takeaways With this transaction, Objectway will extend its direct presence in France, adding another leading financial centre to its current footprint in major European hubs such as Italy, Germany, Switzerland, Benelux and the UK. Objectway will expand its offering across the investment services value chain, adding capital markets capabilities to its existing proposition for wealth management, private banking and asset management. SLIB will also broaden Objectway's client base with major European asset servicers, broker-dealers and banks, alongside strengthening Objectway's long-standing relationships with shared clients such as BNP Paribas. Objectway, the pan-European wealthtech solution partner for banking, wealth and asset management firms, today announced that it has entered into exclusive negotiati
Ant Group Unveils Ling-3.0-Flash Delivering Top-Tier Performance at a Fraction of the Parameter Scale27.7.2026 08:00:00 CEST | Press release
Ant Group today announced the release of Ling-3.0-Flash, a next-generation native hybrid-reasoning foundational model engineered specifically for production-grade AI agent workflows. Designed to deliver rapid response capabilities, it serves as a high-speed execution node that offers a superior balance of intelligence density and cost-efficiency. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260726584441/en/ Ling-3.0-Flash delivers strong performance across multiple core benchmarks. Featuring 124B total parameters with only 5.1B active parameters per token, Ling-3.0-Flash achieves remarkable performance despite its streamlined footprint. It matches or surpasses industry-leading models with two to three times its parameter scale across core benchmarks, including foundational reasoning, instruction following, and long-context processing. Architectural Innovation for Efficiency Ling-3.0-Flash moves away from the traditional ap
SES Statement On FCC Upper C-band Auction Decision27.7.2026 07:30:00 CEST | Press release
SES, a leading space solutions company, issued the following statement following the U.S. Federal Communications Commission approval of the Upper C-band Report & Order that makes 160 megahertz of the Upper C-band available in the contiguous United States for flexible-use, next-generation terrestrial wireless services via a system of competitive bidding. The required auction of the Upper C-band will be completed no later than July 2027, with spectrum clearing deadlines in 2030 and 2031. Gross incentive payments of approximately $5.6 billion to SES are contingent on spectrum clearing within the transition deadlines. The Order also confirms reimbursement of reasonable and necessary Upper C-band transition costs as approved by the clearinghouse. SES CEO Adel Al-Saleh Commented: “We commend Chairman Carr and the FCC staff for their diligence, speed, and hard work. We remain fully committed to working cooperatively with the FCC and all stakeholders as the process progresses. We are pleased t
LTM and Cognition Partner to Reduce Cyber Risk in Financial Services with Devin27.7.2026 07:00:00 CEST | Press release
LTM, the Business Creativity partner to the world's largest enterprises, today announced a strategic partnership with Cognition, the AI lab behind the software engineering agent Devin. As a part of this partnership, LTM has onboarded Devin, Cognition’s Autonomous AI Engineer as part of BlueVerseTM RightLogic. LTM BlueVerse RightLogic, is a cybersecurity assessment and risk assurance framework designed to help enterprises identify, assess and remediate cyber exposure as they accelerate AI adoption. Together, the companies will prioritize financial services sector, where Devin is most proven and where LTM brings deep institutional expertise. As AI adoption accelerates, many financial institutions are facing a widening gap between innovation and cyber risk visibility. BlueVerse RightLogic closes this gap by autonomously identifying, prioritizing and remediating vulnerabilities across banking infrastructure, applications, AI systems, software supply chains and governance—including exploits
Mobix Labs Signs Definitive Agreement to Acquire Vision Aerial, Accelerating Global Drone Platform for National Security and Aerial Intelligence24.7.2026 13:00:00 CEST | Press release
Transaction accelerates Mobix Labs’ global aerial intelligence strategy and National Security Matters Initiative Mobix Labs, Inc. (Nasdaq: MOBX) today announced that it has signed a definitive agreement to acquire Vision Aerial, Inc., a U.S.-based designer and manufacturer of American-built, National Defense Authorization Act (NDAA)-compliant unmanned aerial systems. The definitive agreement moves the transaction beyond the previously announced letter of intent and represents a major step toward closing an acquisition that would expand Mobix Labs into one of the world’s most important technology growth markets: secure drones, autonomous aerial systems and aerial intelligence for national security, critical infrastructure, energy, public safety, industrial inspection and government operations. Vision Aerial’s customers and end-users include the U.S. Air Force, U.S. Navy, government agencies, energy and utility operators, research institutions and other organizations requiring performanc
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