{"id":517847,"date":"2021-07-26T20:07:03","date_gmt":"2021-07-27T00:07:03","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-spending-on-it-business-services-exceeds-us-3b-in-a-quarter-for-first-time\/"},"modified":"2021-07-26T20:07:03","modified_gmt":"2021-07-27T00:07:03","slug":"asia-pacific-spending-on-it-business-services-exceeds-us-3b-in-a-quarter-for-first-time","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/asia-pacific-spending-on-it-business-services-exceeds-us-3b-in-a-quarter-for-first-time\/","title":{"rendered":"Asia Pacific Spending on IT, Business Services Exceeds US $3B in a Quarter for First Time"},"content":{"rendered":"

<\/p>\n

Asia Pacific Spending on IT, Business Services Exceeds US $3B in a Quarter for First Time<\/b><\/p>\n

Both cloud-based and traditional managed services at record quarterly highs<\/b><\/p>\n

SYDNEY–(BUSINESS WIRE<\/a>)–
\nAsia Pacific\u2019s spending on IT and business services surpassed US $3 billion for the first time in a quarter, with record levels of spending in Q2 for both cloud-based and traditional managed services, according to the latest state-of-the-industry report from Information Services Group (ISG<\/a>) (Nasdaq: III<\/a>), a leading global technology research and advisory firm.\n<\/p>\n

\nThe Asia Pacific ISG Index\u2122, which measures commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows the region generated US $3.4 billion in combined-market ACV in the second quarter, up 59 percent against a soft quarter last year at the outset of the pandemic, and up 35 percent from the first quarter.\n<\/p>\n

\nACV for cloud-based services (as-a-service) came in at a record $2.4 billion, up 50 percent over last year, on 52 percent growth in infrastructure-as-a-service (IaaS), to a record $2.1 billion, and 38 percent growth in software-as-a-service (SaaS), to a record $312 million.\n<\/p>\n

\nManaged services, meanwhile, turned in its best quarter in two years, with ACV soaring 87 percent, to a record $929 million. IT outsourcing (ITO) reached a record $800.1 million, up 80 percent, and business process outsourcing (BPO) rocketed 148 percent, to $129 million. Contract activity was at its highest level in the region in three years. Among the 62 deals signed during the quarter, 12 were valued at more than US $30 million of ACV \u2013 more of this size than were signed in all of 2020.\n<\/p>\n

\nWithin the region, most markets delivered sizeable year-over-year growth in managed services, including Australia-New Zealand (ANZ), China, Japan and South Asia, with only Korea declining versus the prior year.\n<\/p>\n

\n\u201cThe second quarter was a real standout for the Asia Pacific region, with record demand in virtually every segment and strong growth across the board,\u201d said Scott Bertsch, partner and regional leader, ISG Asia Pacific. \u201cThe results in ANZ, the region\u2019s largest managed services market, were particularly encouraging. With more than $300 million of ACV this quarter, ANZ delivered its best performance since the end of 2018.\u201d\n<\/p>\n

\nFor the first half of 2021, the combined market generated a record US $5.8 billion of ACV, up 32 percent. As-a-service, at a record US $4.5 billion, was up 33 percent, and managed services, at US $1.3 billion, was up 28.5 percent.\n<\/p>\n

\nWithin as-a-service, IaaS reached a record US $3.9 billion, up 34 percent, and SaaS hit a record US $614 million, up 23 percent. The battle for hyperscale cloud supremacy in the region continues, with Chinese providers adding to the competition. During the quarter, BMW Group opened a joint innovation base with Alibaba Cloud in Shanghai, and global mining firm BHP, based in Australia, signed cloud deals with both AWS and Microsoft Azure.\n<\/p>\n

\nCompetition is also heating up in the cloud-based ERP software space. In Japan, Sumitomo Mitsui Financial Group recently selected Oracle Fusion Cloud ERP to consolidate accounting functions, Toshiba chose SAP to replace its legacy financial systems, and Adobe remained active in the region by leveraging its digital media business and signing new clients such as Toyota and Bytedance.\n<\/p>\n

\nOn the managed services side, ITO reached US $1.1 billion, up 21.5 percent, on 77 transactions, with strength in application development and maintenance (ADM) services, even as infrastructure services declined. A notable ADM award was Accenture\u2019s deal with Japanese telecom company KDDI. One of the larger awards this quarter was HCL winning a multi-tower IT transaction with a diversified financial firm.\n<\/p>\n

\nBPO reached US $237 million, up 75 percent, spurred by industry-specific BPO and engineering and R&D services. Neusoft clinched a sizable ER&D agreement to supply Geely Smart Cars with infotainment systems, and Globant won a deal with Nissan\u2019s customer service team.\n<\/p>\n

Global Forecast<\/b><\/p>\n

\nISG is forecasting the market for cloud-based services (IaaS and SaaS) will grow 21 percent globally in 2021, up from its 18 percent growth forecast last quarter. The firm also is raising its forecast for managed services growth to 9 percent, up from its prior forecast of 5 percent.\n<\/p>\n

About the ISG Index\u2122<\/b><\/p>\n

\nThe ISG Index\u2122 is recognized as the authoritative source for marketplace intelligence on the global technology and business services industry. For 75 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, visit this webpage<\/a>.\n<\/p>\n

About ISG<\/b><\/p>\n

\nISG (Information Services Group) (Nasdaq: III<\/a>) 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\u2019s 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\u2014a 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\u2019s most comprehensive marketplace data. For more information, visit www.isg-one.com<\/a>.\n<\/p>\n

\"\"<\/p>\n

View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20210726005821\/en\/<\/a><\/span><\/p>\n

\nWill Thoretz, ISG
\n
+1 203 517 3119
\n
will.thoretz@isg-one.com<\/a><\/p>\n

\nErik Arvidson, Matter Communications for ISG
\n
+1 617 755 2985
\n
isg@matternow.com<\/a><\/p>\n

KEYWORDS:<\/b> Australia\/Oceania Australia Asia Pacific<\/p>\n

INDUSTRY KEYWORDS:<\/b> Mobile\/Wireless Technology Consulting Other Technology Professional Services Software Networks Internet Hardware Data Management<\/p>\n

MEDIA:<\/b><\/p>\n\n\n\n\n
Logo<\/b><\/font><\/td>\n<\/tr>\n
\"Logo\"<\/td>\n<\/tr>\n
<\/font><\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Asia Pacific Spending on IT, Business Services Exceeds US $3B in a Quarter for First Time Both cloud-based and traditional managed services at record quarterly highs SYDNEY–(BUSINESS WIRE)– Asia Pacific\u2019s spending on IT and business services surpassed US $3 billion for the first time in a quarter, with record levels of spending in Q2 for both cloud-based and traditional 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 Asia Pacific ISG Index\u2122, which measures commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows the region generated US $3.4 billion in combined-market ACV in the second quarter, up 59 percent … <\/p>\n

Continue reading “Asia Pacific Spending on IT, Business Services Exceeds US $3B in a Quarter for First Time”<\/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-517847","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\nAsia Pacific Spending on IT, Business Services Exceeds US $3B in a Quarter for First Time - 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-spending-on-it-business-services-exceeds-us-3b-in-a-quarter-for-first-time\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Asia Pacific Spending on IT, Business Services Exceeds US $3B in a Quarter for First Time - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Asia Pacific Spending on IT, Business Services Exceeds US $3B in a Quarter for First Time Both cloud-based and traditional managed services at record quarterly highs SYDNEY–(BUSINESS WIRE)– Asia Pacific\u2019s spending on IT and business services surpassed US $3 billion for the first time in a quarter, with record levels of spending in Q2 for both cloud-based and traditional 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. 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