Despite economic and geopolitical uncertainties, Western Europe has seen strong growth with several mega deals worth billions of dollars in Total Contract Value (TCV) being signed in the region. One notable agreement was between Liberty Global and Infosys, valued at GBP 1.5 billion, according to IDC. The Nordics also saw significant deals, such as the contract between Danske Bank and Infosys, and the deal between LahiTapiola Mutual Insurance and CG, which have contributed to the region’s growth.
The latest IDC report on managed services highlights the increasing prevalence of AI-driven deals, with the firm predicting this trend to continue in 2024. The average size of AI-related deals has more than doubled in 2023 compared to 2022, indicating a growing demand for AI implementations across various sectors, particularly manufacturing and financial services.
IDC emphasized the importance of upskilling the workforce to meet the demand for Generative AI applications as organizations seek further integration with their existing processes. The firm also anticipates larger managed services deal sizes in 2024, with an increased number of large contracts expected despite mixed signals from economic indicators.
In line with IDC’s predictions, Grand View Research is optimistic about the growth of Managed Service Provider (MSP) revenue in 2024. The global managed services market size was estimated at USD 299.01 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 13.6% from 2023 to 2030, according to Grand View Research. This positive outlook reflects the continued expansion and evolution of the managed services industry.