Managed services contact deals fell in 2022 but the average deal size grew by 22 per cent, according to IDC beancounters.
The number crunchers said that there were more than 1,700 managed services deals signed last year worth more than $125 billion in contract value.
The research firm reports that despite indications of a global economic slowdown, IT spending across organisations is steadily increasing.
There was an increase in larger deal signings (total contract value (TCV) above $100 million) in 2022 compared to 2021.
IDC said that as technology is increasingly becoming the backbone of organisational growth strategies, they are seeing more and more organisations upgrading their IT infrastructure leveraging cloud, artificial intelligence, and security.
The pandemic forced organisations to move towards a digital-first approach and this could be seen in the increased IT spending trend observed in 2022.
Some notable deals include the one between Snap and Google estimated to be more than $700 million, and one between Boeing and AWS estimated to be around $400 million.
Western Europe accounted for 28 per cent of the TCV in 2022, which is almost six per cent less than 2021.
Due to high inflation, skill shortages, and disruption in the supply chain due to geo-political reasons, IDC said that this slowdown is expected to continue over a few quarters.
Notable deals in the region include the one between the London Stock Exchange and Microsoft worth $2.8 billion and between UBS and Microsoft estimated to be around $750 million.
