The global market for IT and business services reached new heights in the third quarter, bouncing back from a prolonged slump, according to a report from Information Services Group (ISG). Data from the global ISG Index™ show that the market hit a record $26.7 billion in ACV, up 15 percent from the previous year. ISG’s president, Steve Hall, described it as a “redemptive quarter” for the industry, with the managed services market reaching a new high and the as-a-service segment showing strong growth.
The as-a-service segment saw a 23 percent increase, reaching $15.8 billion, with infrastructure-as-a-service (IaaS) ACV surging 30 percent. The managed services segment also performed well, generating a record $10.9 billion in ACV. Overall, the market has seen sustained growth over the past few quarters.
Looking ahead, ISG is maintaining its forecast for 2 percent revenue growth for managed services and 14 percent revenue growth for XaaS for the full year. Despite some mixed signals in the market, including softness in the BFSI sector, ISG remains optimistic about the industry’s outlook for 2025.
The ISG Index™ is a trusted source for industry intelligence, providing data and trends for analysts, buyers, providers, and more. For more information about ISG and their services, visit www.isg-one.com.