A virus accelerated the adoption of digital technologies and resulted in the expansion of digital workplaces, according to beancounters at IDC.
IDC senior research manager for global services and market trends, Supriya Kamath said that the push to become a digital-first organisation has created opportunities for managed service providers.
The researcher’s data shows that around 94 percent of H122 deals were in the IT outsourcing market, while the remaining six percent were business outsourcing deals.
IDC said these contracts were largely focused on “digital transformation”, cloud migration, and technology modernisation.
Meanwhile, H122 saw a 40 percent slump in business process outsourcing (BPO) deal signings with an almost 50 percent decline in TCV compared to H121.
The analyst firm claims this trend is due to increased adoption of automation and AI-enabled technologies that are fast replacing traditional BPO engagements.
This has affected large BPO deal signings as well, with H122 recording just one deal above the $500 million threshold compared to two deals during this time the previous year.
