With a solid uptick in requests for assistance with outsourcing, cloud, and as-a-service contracts, 2022 has been busy from the get-go. ISG Index confirmed this trend across the market in its recent Q2 ISG Index Report presentation on July 13, highlighting as one of its three key takeaways that “contracting activity remains strong, with ADM, engineering and industry BPO leading the way.”
According to ISG:
- Annual contract value (ACV) in the managed services and as-a-service combined market grew 9% year over year, with managed services ACV in Q2 2022 reaching over $8 billion for the fifth quarter in a row.
- As-a-service ACV reached over $14 billion in Q2 2022, representing an 11% decrease from the record-high $15.8 billion ACV in Q1 2022.
- There have been massive cloud ACV increases, with hyperscalers’ (AWS, Azure, and GCP) ACV supporting much of the growth in the infrastructure-as-a-service sector, with 50% year-over-year growth. ISG notes a number of trends supporting the cloud frenzy, including enterprises betting on the cloud to unleash innovation, agility, efficiency, and lower costs and outsourcing models evolving to multi/hybrid cloud estates and as-a-service business models.
The ISG Index presentation was informative and provided in depth market data. Check out the full webcast for yourself.