{"id":747935,"date":"2023-04-17T04:03:09","date_gmt":"2023-04-17T08:03:09","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/europes-it-and-business-services-market-shows-mixed-results-in-q1-isg-index-finds\/"},"modified":"2023-04-17T04:03:09","modified_gmt":"2023-04-17T08:03:09","slug":"europes-it-and-business-services-market-shows-mixed-results-in-q1-isg-index-finds","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/europes-it-and-business-services-market-shows-mixed-results-in-q1-isg-index-finds\/","title":{"rendered":"Europe\u2019s IT and Business Services Market Shows Mixed Results in Q1, ISG Index\u2122 Finds"},"content":{"rendered":"

<\/p>\n

Europe\u2019s IT and Business Services Market Shows Mixed Results in Q1, ISG Index\u2122 Finds<\/b><\/p>\n

Managed services up 4% sequentially on record deal activity, while XaaS drops 6% vs. prior year<\/b><\/p>\n

LONDON–(BUSINESS WIRE<\/a>)–
\nFirst-quarter demand for IT and business services in Europe fell 5 percent from a record first quarter last year, continuing a string of four straight quarters of sequential declines, 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.<\/p>\n

\nThe EMEA ISG Index\u2122, which measures commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows ACV for the combined market (both managed services and cloud-based as-a-service) at US $7.4 billion in the first quarter, down 5 percent from the prior year, but essentially flat with the fourth quarter.<\/p>\n

\n\u201cThe broader market in EMEA saw mixed results in the first quarter,\u201d said Steve Hall, president, EMEA, for ISG. \u201cThe managed services market had a relatively stable performance in Q1, with ACV up sequentially on strong restructuring activity and a record number of contracts awarded. Cloud services ACV, though, was down only for the second time year on year, registering its largest quarterly decline ever at minus 6 percent.\u201d<\/p>\n

\nManaged services ACV, at US $3.7 billion, was up 4 percent sequentially from the fourth quarter, but down 4 percent from the prior year. Organizations in the region inked a record 292 contracts during the quarter, up 14 percent against the previous quarter and up 5 percent versus the prior year.<\/p>\n

\nWithin managed services, IT outsourcing (ITO) rose 5 percent year on year, to US $3.0 billion, with strength in application development and maintenance services, up 38 percent, to US $1.9 billion, bolstering the market. Business process outsourcing (BPO), meanwhile, slumped 30 percent year on year, to US $750 million. The BPO segments that grew for the quarter were engineering services, finance and accounting services and facilities management services.<\/p>\n

\nDemand for cloud-based services (XaaS) declined 6 percent versus the prior year, to US $3.7 billion, with infrastructure-as-a-service (IaaS) off 10 percent, at US $2.7 billion, even as software-as-a-service (SaaS) rose 6 percent, to US $1.1 billion.<\/p>\n

Geographic Performance<\/b><\/p>\n

\nThe U.K. remains the largest geographic market in EMEA, with managed services ACV of US $1.2 billion in the first quarter, down 2 percent year on year but up 36 percent from the fourth quarter.<\/p>\n

\nThe DACH (Germany, Austria and Switzerland) market got off to sluggish start in 2023, with ACV of US $730 million down 21 percent versus the prior year and off 20 percent versus the fourth quarter. This was due primarily to an absence of large deals in the market, even though overall deal flow was up 38 percent year on year.<\/p>\n

\nSouthern Europe, Middle East and Africa (SEMEA), led by France, continued its strong performance in the first quarter. The SEMEA market saw more than 90 managed services deals, valued at more than US $1.2 billion of ACV, awarded in the quarter. France alone generated US $635 million of managed services ACV in the quarter, up 27 percent year on year.<\/p>\n

2023 Global Forecast<\/b><\/p>\n

\nISG lowered its forecast for global XaaS growth in 2023 to 15 percent, down 200 basis points from its January forecast, and maintained its global growth forecast for managed services at 5 percent.<\/p>\n

\n\u201cThe macro environment remains uncertain, with interest rates, inflation and trouble in the banking sector topping concerns for enterprise clients,\u201d said Hall. \u201cThere continues to be more scrutiny on deal signings, especially in discretionary spending areas. Enterprises are revisiting cost optimization, efficiency gains and vendor consolidation deals.\u201d<\/p>\n

\nHall said attrition has stabilized and ISG expects hiring to improve in the back half of the year. The decline in XaaS bookings is expected to last through the second quarter, with demand picking up again in the second half, he said.<\/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 82 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. For more information about the ISG Index, visit this webpage<\/a>.<\/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 900 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 1,600 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>.<\/p>\n

\"\"<\/p>\n

View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20230417005177\/en\/<\/a><\/span><\/p>\n

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

Kate Hartley, Carrot Communications for ISG
\n
+44 7714065233
\n
kate.hartley@carrotcomms.co.uk<\/a><\/p>\n

KEYWORDS:<\/b> United Kingdom Europe<\/p>\n

INDUSTRY KEYWORDS:<\/b> Professional Services Data Management Business Technology Software Networks Consulting<\/p>\n

MEDIA:<\/b><\/p>\n\n\n\n\n
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\"Logo\"<\/td>\n<\/tr>\n
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Europe\u2019s IT and Business Services Market Shows Mixed Results in Q1, ISG Index\u2122 Finds Managed services up 4% sequentially on record deal activity, while XaaS drops 6% vs. prior year LONDON–(BUSINESS WIRE)– First-quarter demand for IT and business services in Europe fell 5 percent from a record first quarter last year, continuing a string of four straight quarters of sequential declines, 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 EMEA ISG Index\u2122, which measures commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows ACV for the combined market (both managed services and cloud-based as-a-service) at US $7.4 billion in the … <\/p>\n

Continue reading “Europe\u2019s IT and Business Services Market Shows Mixed Results in Q1, ISG Index\u2122 Finds”<\/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-747935","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\nEurope\u2019s IT and Business Services Market Shows Mixed Results in Q1, ISG Index\u2122 Finds - 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\/europes-it-and-business-services-market-shows-mixed-results-in-q1-isg-index-finds\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Europe\u2019s IT and Business Services Market Shows Mixed Results in Q1, ISG Index\u2122 Finds - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Europe\u2019s IT and Business Services Market Shows Mixed Results in Q1, ISG Index\u2122 Finds Managed services up 4% sequentially on record deal activity, while XaaS drops 6% vs. prior year LONDON–(BUSINESS WIRE)– First-quarter demand for IT and business services in Europe fell 5 percent from a record first quarter last year, continuing a string of four straight quarters of sequential declines, 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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