Business Wire

European IT and Business Services Market Remains Robust, ISG Index™ Finds

Share

The European market for IT and business services remains robust, with record demand for cloud-based services in the first quarter and continued strength 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, which includes both as-a-service and managed services, reached US $6.0 billion, up 20 percent year on year, but off 5 percent from a record fourth quarter.

Cloud-based as-a-service ACV reached a quarterly record of US $2.5 billion, up 16 percent versus the prior year. Within this segment, infrastructure-as-a-service (IaaS) climbed 19 percent, to a record US $1.8 billion, while software-as-a-service (SaaS) rose 9 percent, to a record US $658 million.

Managed services, meanwhile, produced its second straight strong quarter, with ACV of US $3.5 billion, up 23 percent year on year, fueled 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 US $3.0 billion, on strength in both ADM and infrastructure services, while BPO surged 66 percent, to US $521 million, on strong demand for industry-specific, finance and accounting, and engineering and R&D services.

“EMEA has produced two consecutive quarters with US $6 billion or more of ACV, adding more than US $1.4 billion from its pandemic low,” said Steve Hall, president, ISG EMEA. “Importantly, the region is seeing strength in both the as-a-service segment, as more and more enterprises adopt a public or hybrid cloud strategy, and on the managed services side, which is experiencing a resurgence.”

Hall pointed out that three of the four mega-deals (those with ACV of US $100 million or more) in the first quarter were awarded in the EMEA region. “That brings the total to eight mega-deals over the last two quarters; you have to go back to early 2017 to find a two-quarter period in EMEA that had more mega-deals awarded.”

Among significant IT awards in the first quarter, Mphasis contracted with Ardonagh Group, the U.K. independent insurance broker, to support its digital transformation. On the infrastructure side, Atos won a large digital workplace contract with telecom company Wind Tre in Italy, and HCL inked a five-year digital workplace services agreement with Airbus, the European aerospace manufacturer.

Within the BPO space, KPIT signed significant engineering services deals with BMW and automotive technology company Veoneer to support work on autonomous driving and intelligent mobility. ISS Group, meanwhile, secured an eight-year extension with Barclays in the U.K. to provide integrated facility and workplace services across the bank’s operations in 30 countries.

With the automotive sector becoming a battleground for major public cloud providers, BMW Group announced it is migrating workloads to AWS, joining automakers Renault and Volkswagen on AWS. In the travel sector, ISG advised on one of the biggest cloud deals in the region this quarter with the signed agreement between global travel technology company Amadeus and Microsoft Azure.

In the SaaS segment, Microsoft signed deals this quarter with Daimler, GlaxoSmithKline and IKEA, while Oracle secured contracts with NatWest Group to standardize its various banks on Oracle Fusion in the cloud.

Market Insights

The DACH market generated more than US $1 billion of managed services ACV in the first quarter, up 13 percent over the prior year. It was the second consecutive quarter DACH ACV was above US $1 billion mark—about a third higher than its historic norm. DACH now accounts for nearly 30 percent of managed services ACV in the EMEA region.

Managed services ACV in the UK reached US $866 million, up 20 percent over the prior year. It was the fourth consecutive quarter the UK generated managed services ACV in excess of US $800 million, represented a sustained rebound for the market, but still below the US $1 billion quarters that were typical prior to 2017 and the onset of Brexit uncertainty.

France, meanwhile, had its best ACV quarter since 2014, with managed services ACV of US $595 million, up nearly 2.5 times from US $243 million in the prior year, with nearly 40 deals reached in the quarter.

2021 Global Forecast

ISG is forecasting the global market for cloud-based services (IaaS and SaaS) will grow 18 percent in 2021, down slightly from its 20 percent forecast at the start of the year. ISG, meanwhile, has raised its growth forecast for managed services to 5 percent, up from 3 percent at the start of the year.

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 74 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 700 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.

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

Press:
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com

Kate Hartley, Carrot Communications for ISG
+44 7714065233
kate.hartley@carrotcomms.co.uk

About Business Wire

Business Wire
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

EAG Expands Medical Device Testing Services with New Laboratory7.5.2021 17:22:00 CEST | Press release

EAG Laboratories is expanding its medical device testing capabilities with a new 20,000 square-foot laboratory located in St. Louis, Mo. The new laboratory is a bespoke design to support the requirements of the medical device industry. It increases EAG’s analytical capabilities, allows for improved turnaround times and helps meet evolving requirements from the FDA as well as the European Union Medical Device Regulations (MDR). Specialty features of the laboratory include: A cleanroom designed for particle isolation and identification A dedicated medical device polymer analysis laboratory State-of the-art instrumentation to support biocompatitility testing of ISO 10993-18 programs for medical devices and combination products EAG scientists have been investigating and resolving product failures for more than half a century and have a deep understanding of materials and testing procedures. The medical device laboratory expansion allows EAG to leverage that knowledge and apply it toward su

SoftServe Wins Learning and Development Honor at 2021 ATD Excellence in Practice Awards7.5.2021 13:00:00 CEST | Press release

SoftServe, a leading digital authority and consulting company, won the Excellence in Practice Award in the ‘Learning and Development’ category in the 2021 Association for Talent Development (ATD) Excellence in Practice Awards. SoftServe was recognized for its corporate learning hub, SoftServe University, which focuses on learning and development opportunities for associates, including the design and delivery of training. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210507005003/en/ Association for Talent Development logo. (Photo: Business Wire) “SoftServe is dedicated to creating a people-centric organization that allows associates to grow and develop professionally,” said Galyna Datsiv, AVP of Learning and Development at SoftServe. “Our corporate learning ecosystem within the integrated talent management framework enables us to reach SoftServe’s strategic business goals by ensuring associates are qualified and have the ex

Monument Assurance Belgium and Intégrale Reach Agreement for the Transfer of Intégrale's Entire Portfolio and Staff to MAB7.5.2021 12:26:00 CEST | Press release

Monument Assurance Belgium (“MAB”) and Intégrale have reached an agreement under which MAB will acquire the entire portfolio and all the staff of the insurance company Intégrale. This agreement follows a firm offer from MAB, which was considered by the provisional administrators appointed by the National Bank of Belgium (“NBB”) to be that which best meets the interests of Intégrale policyholders and staff. The transaction remains subject to the final approval of the NBB. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210507005270/en/ During the transition period, MAB and Intégrale will take all steps necessary to prepare for a seamless transfer for policyholders, brokers and staff. In the meantime, Intégrale's staff will continue to service policyholders and brokers as usual. In addition to the transfer of assets at the time of closing, MAB will offer an 18-month employment guarantee to all employees and, in addition, a 3-mo

The Metals Company Joins European Industry Alliances to Bolster Battery Supply Chain for the Clean Energy Transition7.5.2021 10:00:00 CEST | Press release

Today, The Metals Company (formerly DeepGreen), a developer of the world’s largest and highest-grade estimated source of battery metals, announced it has joined two of the European Union’s foremost industrial alliances—the European Raw Materials Alliance (ERMA) and the European Battery Alliance (EBA)—as the bloc advances its plans to become a global leader in the sustainable production of the batteries necessary to store clean energy and power electric vehicles (EVs). As a member of these industrial alliances, The Metals Company—which announced in March its plans to go public via a merger with the Sustainable Opportunities Acquisition Corporation (NYSE: SOAC)—brings a new, scalable source of battery metals to the table in the form of polymetallic nodules found unattached on the deep seafloor in the Pacific Ocean, which can help deliver upon their mandate for a diverse, reliable and responsible supply of critical minerals needed for low-carbon technologies. Under its Green Deal, the Eur

Morocco and UN Celebrate First-Ever International Argan Tree Day7.5.2021 08:30:00 CEST | Press release

Morocco and the United Nations will be marking the first-ever International Argan Tree Day on May 10th, 2021. The Argan tree, a tree specific to the Kingdom of Morocco, will thus be celebrated every year on May 10, as an intangible cultural heritage of humanity and ancestral source of sustainable development. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210506005652/en/ February 22, 2021: The United Nations’ General Assembly adopted by consensus a resolution proclaiming May 10 of each year as the “International Argan Tree Day” (Photo: AETOSWire) The proclamation of the International Argan Tree Day was announced on March 3, 2021, when the UN General Assembly adopted by consensus a draft resolution initiated by Morocco and hailed by all United Nations’ member states. This milestone is a culmination of Morocco’s quest to mobilize the international community to protect and further develop the country’s Argan industry. It is al

Tigo Energy Demonstrates Optimization to Installers in Brazil with Stark Renováveis Installation7.5.2021 02:14:00 CEST | Press release

Tigo Energy, Inc., the solar industry’s leading Flex MLPE (Module Level Power Electronics) supplier, announced today that Stark Renováveis has used the Tigo TS4-A-O to mitigate energy lost due to shade on their corporate headquarters in São José do Rio Preto, Brazil. Their confidence in Tigo’s solution drove the selection of the products for their own use. The Tigo solution gives installers and commercial system owners the freedom to choose their preferred inverters and panels along with the right features for optimized, monitored and PV safe systems. The Stark Renováveis team chose a rooftop PV system with 405 Wp modules organized in multiple strings and using GoodWeTM grid-tied inverters. The optimum placement of the modules was on a roof bordering a large construction wall which would ordinarily lead to shade and a degradation of the output. To mitigate the problem of energy lost due to shade, Tigo TS4-A-O optimizers were deployed to ensure the best possible system performance. "As

93 rd Vifor Pharma Group Annual General Meeting6.5.2021 18:00:00 CEST | Press release

Regulatory News: At today’s 93rd Annual General Meeting of Vifor Pharma Ltd., shareholders approved all proposed resolutions put forward by the Board of Directors. In view of the ongoing COVID-19 pandemic and in accordance with Ordinance 3 on measures to combat the coronavirus issued by the Swiss Federal Council, on the basis of Art. 8 of the new COVID-19 Act, shareholders were not permitted to attend the event in person. Shareholders exercised their rights exclusively through the independent proxy and 61.6% of the share capital was represented. Shareholder approvals Shareholders approved the Annual Report and the Annual Financial Statements of Vifor Pharma Ltd., as well as the consolidated Financial Statements of Vifor Pharma Group for 2020 by a large majority. The maximum possible 2022 remuneration for the Board of Directors and Executive Committee was also approved, as well as the 2020 Remuneration Report in a consultative vote. In addition, shareholders discharged the members of th

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