Beancounters at ISG say that the European market for IT and business services is doing well with record demand for cloud-based services in the first quarter and continued strength in managed services,
The EMEA ISG Index, which measures commercial outsourcing contracts with annual contract value (ACV) of US $5 million, shows ACV for the combined market, which includes both as-a-service and managed services, reached US $6 billion, up 20 percent year on year, but off five per cent from a record fourth quarter.
Cloud-based as-a-service ACV reached a quarterly record of $2.5 billion, up 16 percent versus the prior year. Within this segment, infrastructure-as-a-service (IaaS) climbed 19 percent, to a record $1.8 billion, while software-as-a-service (SaaS) rose nine percent, to a record $658 million.
Managed services, meanwhile, produced its second straight strong quarter, with ACV of US $3.5 billion, up 23 percent year on year, fuelled by growth in both IT outsourcing (ITO) and business process outsourcing (BPO) and strong results in the UK, France and DACH. ITO was up 17 percent year on year, to $3.0 billion, on strength in both ADM and infrastructure services, while BPO surged 66 percent, to $521 million, on strong demand for industry-specific, finance and accounting, and engineering and R&D services.
