Market Reaches New High After Prolonged Downturn
The global market for IT and business services achieved record results in the third quarter, climbing back to the pinnacle of performance following an extended slump that reached bottom more than a year ago, according to the latest state-of-the industry report.
Record-Breaking Numbers
Data from the global ISG Index™ show that the combined global market (managed services and cloud-based as-a-service) reached a record $26.7 billion, marking a 15% increase from the prior year and a significant milestone since its previous peak in the first quarter of 2022.
Growth Across Segments
The as-a-service (XaaS) segment surged by 23% year-over-year, reaching $15.8 billion, with notable growth trends in infrastructure-as-a-service (IaaS) and software-as-a-service (SaaS) subsegments.
Managed Services on the Rise
The managed services segment generated a record $10.9 billion of ACV in the third quarter, showcasing a 5% increase from the previous year and continuing its upward trajectory.
2024 Forecast and Beyond
ISG maintains its 2024 forecast and anticipates stronger growth in the coming year, despite challenges in the BFSI sector. The firm sees promising prospects for both managed services and XaaS in 2025.
Reviving Tech Giants: ISG Index™ Points to Bright Future in 2025
The Recovery of Tech Giants
The resurgence of interest in GenAI, increased server shipments, and the reacceleration of hyperscaler revenues have cast a beacon of hope over the technology landscape, painting a more optimistic outlook as we step into the realm of 2025. The signs of life reemerging in once-sleeping giants have incited a wave of enthusiasm among industry insiders and financial analysts. As the tide turns, it seems as though the winds of change are blowing favorably in the tech sector.
A Glimpse Into the ISG Index™
The ISG Index™ stands as a stalwart beacon of marketplace intelligence, offering a compass for navigating the tumultuous waters of the global technology and business services industry. With a legacy that spans 88 quarters, this reservoir of knowledge has been the guiding star for financial analysts, enterprise buyers, software and service providers, law firms, universities, and the media. The unveiling of the 3Q24 Global ISG Index results during a recent webcast shed light on the current state of affairs, hinting at a promising horizon that lies ahead.
Unveiling ISG
ISG (Information Services Group) – the venerated titan in global technology research and advisory services – continues to hold its ground as a trusted ally to over 900 clients worldwide, boasting a clientele that includes 75 of the top 100 enterprises globally. Since its inception in 2006, ISG has been on a mission to shepherd corporations, public sector organizations, service providers, and technology aspirants towards operational excellence and accelerated growth. With a repertoire that spans digital transformation services, including AI, cloud, and data analytics, as well as sourcing advisory, managed governance and risk services, and more, ISG has positioned itself at the vanguard of industry evolution. Hailing from Stamford, Conn., ISG’s team of over 1,600 digital-savvy professionals across 20 countries embodies a spirit of innovation, industry prowess, and unyielding dedication to cutting-edge research and analysis.
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