{"id":1009915,"date":"2026-10-13T20:03:02","date_gmt":"2026-10-14T00:03:02","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\/"},"modified":"2026-10-13T20:03:02","modified_gmt":"2026-10-14T00:03:02","slug":"asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\/","title":{"rendered":"Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows"},"content":{"rendered":"<p>        <!--.bwalignc { text-align: center; list-style-position: inside }body {font:normal small Arial,Helvetica,sans-serif;color:#000;background-color:#fff;padding:24px;margin:0;} a img {border:0;} h3 {font-size:medium;color:#000;margin:0 0 1em 0; text-align:center;}-->  <\/p>\n<p class=\"bwalignc\"><b>Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows<\/b><\/p>\n<p class=\"bwalignc\"><b>Combined market up 80%, as XaaS soars 92% and managed services climbs 16%<\/b><\/p>\n<p>SYDNEY&#8211;(<a href=\"http:\/\/www.businesswire.com\">BUSINESS WIRE<\/a>)&#8211;<br \/>\nUnprecedented demand for AI drove record growth and spending on technology services in Asia Pacific during the third quarter, the latest state-of-the-industry report from Information Services Group (<a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.isg-one.com&amp;esheet=54620530&amp;newsitemid=20261013230237&amp;lan=en-US&amp;anchor=ISG&amp;index=1&amp;md5=da5da8b7556c52a609582f60058ec93b\">ISG<\/a>) (Nasdaq: <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.nasdaq.com%2Fmarket-activity%2Fstocks%2Fiii&amp;esheet=54620530&amp;newsitemid=20261013230237&amp;lan=en-US&amp;anchor=III&amp;index=2&amp;md5=9bbd18dba8828c1974e693734b161586\">III<\/a>), a global AI-centered technology research and advisory firm, finds.<\/p>\n<p>\nThe Asia Pacific ISG Index\u2122, which measures commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows third-quarter ACV for the combined market (both traditional managed services and cloud-based infrastructure and software services) shot up 80 percent\u2014the region\u2019s highest growth rate ever\u2014to a record US $10.0 billion\u2014the first time ever spending has reached the $10 billion mark in a quarter.<\/p>\n<p>\n\u201cAI is rocket fuel for the Asia Pacific market,\u201d said Michael Gale, partner and regional leader, ISG Asia Pacific. \u201cWe are seeing unprecedented demand for cloud infrastructure to support AI computing needs, as well as for software services, which are fast becoming the key means by which employees are using AI. Traditional managed services also is seeing strong growth as a lever to lower costs and free up funds for AI investment.\u201d<\/p>\n<p>\nThe ISG Index shows spending on cloud-based services (as-a-service, or XaaS) soared 92 percent year on year, its highest growth rate since 2018, to a record US $9.0 billion. Within the XaaS segment, infrastructure-as-a-service (IaaS) ACV essentially doubled (up 99 percent), to a record US $8.3 billion, while software-as-a-service (SaaS) ACV jumped 37 percent, to US $681 million.<\/p>\n<p>\nTraditional managed services rose 16 percent, to just over US $1.0 billion, the second quarter in a row managed services ACV topped the US $1 billion mark. Within this segment, IT outsourcing (ITO) ACV climbed 41 percent, to US $785 million, with spending across most areas up sharply, offsetting a decline in application development and maintenance (ADM) services. Business process outsourcing (BPO), meanwhile, skyrocketed by 281 percent, to US $209 million, driven by 5X growth in industry-specific services. Engineering, research and development (ER&amp;D) services, on the other hand, fell by 82 percent, to US $52 million, as AI impacted demand for software engineering services.<\/p>\n<p>\nDuring the quarter, 55 managed services contracts were awarded, down 8 percent year on year, as small discretionary deal volume faltered.<\/p>\n<p>\nAmong industries, ACV in the banking, financial services and insurance (BFSI) sector was up triple digits (107 percent), while manufacturing rose 11 percent, breaking a streak of five straight quarters of declining results. With a 53 percent drop in ACV, the telecommunications sector, however, remained in the doldrums, down for the third straight quarter.<\/p>\n<p>\nGeographically, the region\u2019s smaller markets were the source of growth, with Southeast Asia up 16 percent and Korean up 10 times the prior year. The region\u2019s largest market\u2014Australia and New Zealand\u2014was flat year on year, while India declined 10 percent.<\/p>\n<p><b>Nine-Month Results<\/b><\/p>\n<p>\nAsia Pacific\u2019s combined market ACV rose 50 percent year to date, to US $25.0 billion.<\/p>\n<p>\nThe XaaS segment climbed 56 percent, to US $22.1 billion, accounting for 89 percent of the combined market. Within XaaS, IaaS climbed 61 percent, to US $20.3 billion, while SaaS rose 18 percent, to US $1.8 billion.<\/p>\n<p>\nManaged services rose 12 percent, to US $2.9 billion. ITO was up 17 percent, to US $2.0 billion, and BPO advanced 37 percent, to US $470 million, while ER&amp;D fell 21 percent, to US $387 million. The 170 managed services contracts awarded year to date were down 9 percent from the prior year.<\/p>\n<p><b>2026 Global Forecast<\/b><\/p>\n<p>\nFor the full year, ISG is maintaining its forecast of 2.1 percent growth for managed services. At the same time, ISG is raising its previous growth forecast for cloud-based XaaS to 60 percent, up from 30 percent last quarter. Within this segment, IaaS is expected to grow 80 percent and SaaS is expected to grow 12.5 percent\u2014the first time ISG has broken out IaaS and SaaS in its public forecasts.<\/p>\n<p><b>About the ISG Index\u2122<\/b><\/p>\n<p>\nThe ISG Index\u2122 is recognized as the authoritative source for marketplace intelligence on the global technology and business services industry. For 96 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.<\/p>\n<p>\nThe 3Q26 Global ISG Index results were presented during a webcast on October 8. To view a replay of the webcast and download the presentation slides, visit this <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fisg-one.com%2Fresearch%2Fisg-index&amp;esheet=54620530&amp;newsitemid=20261013230237&amp;lan=en-US&amp;anchor=webpage&amp;index=3&amp;md5=2f40a0c45f4702809ba37c3c4cc66ab4\">webpage<\/a>.<\/p>\n<p><b>About ISG<\/b><\/p>\n<p><a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.isg-one.com%2F&amp;esheet=54620530&amp;newsitemid=20261013230237&amp;lan=en-US&amp;anchor=ISG&amp;index=4&amp;md5=69dd97174e6c94748cfd25b43bc67160\">ISG<\/a> (Nasdaq: <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.nasdaq.com%2Fmarket-activity%2Fstocks%2Fiii&amp;esheet=54620530&amp;newsitemid=20261013230237&amp;lan=en-US&amp;anchor=III&amp;index=5&amp;md5=600350553c9953a4669fcacf2279e046\">III<\/a>) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world\u2019s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.<\/p>\n<p><img decoding=\"async\" alt=\"\" src=\"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20261013230237r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\" style=\"width:0;height:0\" \/><span class=\"bwct31415\" \/><\/p>\n<p id=\"mmgallerylink\"><span id=\"mmgallerylink-phrase\">View source version on businesswire.com: <\/span><span id=\"mmgallerylink-link\"><a href=\"https:\/\/www.businesswire.com\/news\/home\/20261013230237\/en\/\" rel=\"nofollow\">https:\/\/www.businesswire.com\/news\/home\/20261013230237\/en\/<\/a><\/span><\/p>\n<p>\nWill Thoretz, ISG<br \/>\n<br \/>+1 203 517 3119<br \/>\n<br \/><a rel=\"nofollow\" href=\"mailto:will.thoretz@isg-one.com\">will.thoretz@isg-one.com<br \/>\n<\/a><\/p>\n<p>Erik Arvidson, Matter Communications for ISG<br \/>\n<br \/>+1 978 518 4542<br \/>\n<br \/><a rel=\"nofollow\" href=\"mailto:isg@matternow.com\">isg@matternow.com<\/a><\/p>\n<p><b>KEYWORDS:<\/b> Connecticut North America United States Asia Pacific Australia Australia\/Oceania<\/p>\n<p><b>INDUSTRY KEYWORDS:<\/b> Software Data Analytics Internet Consulting Artificial Intelligence Data Management Professional Services Technology<\/p>\n<p><b>MEDIA:<\/b><\/p>\n<table cellpadding=\"3\" cellspacing=\"3\">\n<tr>\n<td><font face=\"Arial\" size=\"2\"><b>Logo<\/b><\/font><\/td>\n<\/tr>\n<tr>\n<td><img decoding=\"async\" src=\"https:\/\/mms.businesswire.com\/media\/20261013230237\/en\/1016900\/3\/ISG_R_Logo.jpg\" alt=\"Logo\" \/><\/td>\n<\/tr>\n<tr>\n<td><font face=\"Arial\" size=\"2\"><\/font><\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows Combined market up 80%, as XaaS soars 92% and managed services climbs 16% SYDNEY&#8211;(BUSINESS WIRE)&#8211; Unprecedented demand for AI drove record growth and spending on technology services in Asia Pacific during the third quarter, the latest state-of-the-industry report from Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm, finds. The Asia Pacific ISG Index\u2122, which measures commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows third-quarter ACV for the combined market (both traditional managed services and cloud-based infrastructure and software services) shot up 80 percent\u2014the region\u2019s highest growth rate ever\u2014to a record US &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-1009915","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows Combined market up 80%, as XaaS soars 92% and managed services climbs 16% SYDNEY&#8211;(BUSINESS WIRE)&#8211; Unprecedented demand for AI drove record growth and spending on technology services in Asia Pacific during the third quarter, the latest state-of-the-industry report from Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm, finds. The Asia Pacific ISG Index\u2122, which measures commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows third-quarter ACV for the combined market (both traditional managed services and cloud-based infrastructure and software services) shot up 80 percent\u2014the region\u2019s highest growth rate ever\u2014to a record US &hellip; Continue reading &quot;Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Newsdesk\" \/>\n<meta property=\"article:published_time\" content=\"2026-10-14T00:03:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20261013230237r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\" \/>\n<meta name=\"author\" content=\"Newsdesk\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Newsdesk\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\\\/\"},\"author\":{\"name\":\"Newsdesk\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#\\\/schema\\\/person\\\/482f27a394d4fda80ecb5499e519d979\"},\"headline\":\"Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows\",\"datePublished\":\"2026-10-14T00:03:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\\\/\"},\"wordCount\":870,\"image\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/cts.businesswire.com\\\/ct\\\/CT?id=bwnews&amp;sty=20261013230237r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\",\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\\\/\",\"url\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\\\/\",\"name\":\"Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows - 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Market Newsdesk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\/","og_locale":"en_US","og_type":"article","og_title":"Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows - Market Newsdesk","og_description":"Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows Combined market up 80%, as XaaS soars 92% and managed services climbs 16% SYDNEY&#8211;(BUSINESS WIRE)&#8211; Unprecedented demand for AI drove record growth and spending on technology services in Asia Pacific during the third quarter, the latest state-of-the-industry report from Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm, finds. The Asia Pacific ISG Index\u2122, which measures commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows third-quarter ACV for the combined market (both traditional managed services and cloud-based infrastructure and software services) shot up 80 percent\u2014the region\u2019s highest growth rate ever\u2014to a record US &hellip; Continue reading \"Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\/","og_site_name":"Market Newsdesk","article_published_time":"2026-10-14T00:03:02+00:00","og_image":[{"url":"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20261013230237r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows","datePublished":"2026-10-14T00:03:02+00:00","mainEntityOfPage":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\/"},"wordCount":870,"image":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\/#primaryimage"},"thumbnailUrl":"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20261013230237r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en","inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\/","url":"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-ai-demand-drives-record-growth-spending-on-tech-services-in-q3-isg-index-shows\/","name":"Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index\u2122 Shows - 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