AI-Fueled Cloud Demand Powers Global IT, Business Services Market to New High in Q4: ISG Index™
ISG Index™ reports global IT and business services spending reached record levels in Q4 2023, with combined market ACV up 20% to $28.2 billion. Cloud services led the growth with a 33% increase to $17.7 billion, driven by AI adoption, while managed services grew modestly at 2.6% to $10.5 billion.
For the full year 2024, the combined market ACV hit a record $104 billion, up 11%. Cloud-based services reached $62.4 billion (+19%), with IaaS up 25% to $46.6 billion and SaaS up 4.6% to $15.8 billion. Managed services grew less than 2% to $41.7 billion.
ISG forecasts 18% growth for cloud services and 4.5% growth for managed services in 2025, citing AI spending momentum and expected improvements in enterprise demand, despite potential challenges from restrictive interest rates and global economic uncertainties.
ISG Index™ riporta che la spesa globale per i servizi IT e aziendali ha raggiunto livelli record nel quarto trimestre del 2023, con un aumento del 20% dell'ACV di mercato combinato che ha raggiunto i 28,2 miliardi di dollari. I servizi cloud hanno guidato la crescita con un incremento del 33% a 17,7 miliardi di dollari, sostenuto dall'adozione dell'IA, mentre i servizi gestiti sono cresciuti modestamente del 2,6% a 10,5 miliardi di dollari.
Per l'intero anno 2024, l'ACV di mercato combinato ha raggiunto un record di 104 miliardi di dollari, con un aumento dell'11%. I servizi basati su cloud hanno raggiunto i 62,4 miliardi di dollari (+19%), con l'IaaS in crescita del 25% a 46,6 miliardi di dollari e il SaaS in aumento del 4,6% a 15,8 miliardi di dollari. I servizi gestiti sono cresciuti di meno del 2% a 41,7 miliardi di dollari.
ISG prevede una crescita del 18% per i servizi cloud e del 4,5% per i servizi gestiti nel 2025, citando il momentum della spesa per l'IA e i miglioramenti previsti nella domanda aziendale, nonostante le potenziali sfide derivanti da tassi di interesse restrittivi e incertezze economiche globali.
ISG Index™ informa que el gasto global en servicios de TI y negocios alcanzó niveles récord en el cuarto trimestre de 2023, con un aumento del 20% en el ACV del mercado combinado, alcanzando los 28.2 mil millones de dólares. Los servicios en la nube lideraron el crecimiento con un incremento del 33% hasta los 17.7 mil millones de dólares, impulsado por la adopción de la IA, mientras que los servicios administrados crecieron modestamente un 2.6% hasta los 10.5 mil millones de dólares.
Para el año completo 2024, el ACV del mercado combinado alcanzó un récord de 104 mil millones de dólares, con un aumento del 11%. Los servicios basados en la nube alcanzaron los 62.4 mil millones de dólares (+19%), con el IaaS creciendo un 25% hasta los 46.6 mil millones de dólares y el SaaS un 4.6% hasta los 15.8 mil millones de dólares. Los servicios administrados crecieron menos del 2% hasta los 41.7 mil millones de dólares.
ISG prevé un crecimiento del 18% para los servicios en la nube y del 4.5% para los servicios administrados en 2025, citando el impulso del gasto en IA y las mejoras esperadas en la demanda empresarial, a pesar de los posibles desafíos de las tasas de interés restrictivas y la incertidumbre económica global.
ISG Index™는 2023년 4분기 글로벌 IT 및 비즈니스 서비스 지출이 기록적인 수준에 도달했으며, 결합 시장 ACV가 20% 증가하여 282억 달러에 이르렀다고 보고했습니다. 클라우드 서비스는 AI 채택으로 인해 33% 증가하여 177억 달러에 도달하며 성장을 이끌었습니다. 관리형 서비스는 2.6% 증가하여 105억 달러에 도달했습니다.
2024년 전체 연도에 대해 결합 시장 ACV는 기록적인 1,040억 달러에 도달했으며, 11% 증가했습니다. 클라우드 기반 서비스는 624억 달러(+19%)에 도달했으며, IaaS는 25% 증가하여 466억 달러, SaaS는 4.6% 증가하여 158억 달러에 달했습니다. 관리형 서비스는 2% 미만 증가하여 417억 달러에 이르렀습니다.
ISG는 2025년 클라우드 서비스가 18%, 관리형 서비스가 4.5% 성장할 것으로 예상하며, AI 지출의 증가세와 기업 수요의 개선이 예상되지만, 제약적인 금리와 글로벌 경제 불확실성으로 인한 잠재적인 도전 과제가 있을 수 있다고 언급했습니다.
ISG Index™ rapporte que les dépenses mondiales en services informatiques et d'affaires ont atteint des niveaux records au quatrième trimestre 2023, avec un ACV de marché combiné en hausse de 20 % à 28,2 milliards de dollars. Les services cloud ont propulsé la croissance avec une augmentation de 33 % à 17,7 milliards de dollars, soutenue par l'adoption de l'IA, tandis que les services gérés ont connu une hausse modeste de 2,6 % à 10,5 milliards de dollars.
Pour l'année complète 2024, l'ACV de marché combiné a atteint un record de 104 milliards de dollars, soit une augmentation de 11 %. Les services basés sur le cloud ont atteint 62,4 milliards de dollars (+19 %), avec l'IaaS en hausse de 25 % à 46,6 milliards de dollars et le SaaS en augmentation de 4,6 % à 15,8 milliards de dollars. Les services gérés ont crû de moins de 2 % à 41,7 milliards de dollars.
ISG prévoit une croissance de 18 % pour les services cloud et de 4,5 % pour les services gérés en 2025, citant l'impulsion des dépenses en IA et les améliorations attendues dans la demande des entreprises, malgré les défis potentiels dus à des taux d'intérêt restrictifs et à des incertitudes économiques mondiales.
ISG Index™ berichtet, dass die globalen Ausgaben für IT- und Geschäftsservices im vierten Quartal 2023 Rekordhöhen erreicht haben, wobei der kombinierte Markt-ACV um 20% auf 28,2 Milliarden US-Dollar gestiegen ist. Cloud-Services führten das Wachstum mit einem Anstieg von 33% auf 17,7 Milliarden US-Dollar an, angetrieben durch die Akzeptanz von KI, während die verwalteten Services moderat um 2,6% auf 10,5 Milliarden US-Dollar wuchsen.
Im gesamten Jahr 2024 erzielte der kombinierte Markt-ACV einen Rekord von 104 Milliarden US-Dollar, was einem Anstieg von 11% entspricht. Cloud-basierte Dienstleistungen erreichten 62,4 Milliarden US-Dollar (+19%), mit einer Steigerung des IaaS um 25% auf 46,6 Milliarden US-Dollar und des SaaS um 4,6% auf 15,8 Milliarden US-Dollar. Die verwalteten Services wuchsen um weniger als 2% auf 41,7 Milliarden US-Dollar.
ISG prognostiziert für 2025 ein Wachstum von 18% für Cloud-Services und 4,5% für verwaltete Services und verweist auf das Momentum der KI-Ausgaben sowie auf erwartete Verbesserungen in der Unternehmensnachfrage, trotz möglicher Herausforderungen durch restriktive Zinssätze und globale wirtschaftliche Unsicherheiten.
- Record Q4 combined market ACV of $28.2 billion, up 20% YoY
- Cloud services ACV increased 33% to $17.7 billion in Q4
- IaaS revenue soared 42% to $13.4 billion in Q4
- Full-year 2024 combined market ACV reached record $104 billion
- AI now accounts for 6% of provider revenues and growing
- Managed services growth slowed to 2.6% in Q4
- IT outsourcing nearly flat at 0.6% growth in Q4
- Continued pressure on discretionary spending in banking and manufacturing sectors
- Strong US dollar poses challenges for multinational corporations
Insights
The Q4 2024 ISG Index reveals a remarkable 20% growth in global IT and business services spending, with the combined market reaching a record
The full-year performance shows combined market ACV hitting
For III (Information Services Group), this market expansion presents significant opportunities. The company's position as a leading technology research and advisory firm allows it to capitalize on the increasing demand for AI and cloud migration consulting services. The forecast of
The surge in AI-driven cloud adoption marks a pivotal shift in enterprise technology spending patterns. The
The market's recovery from the 2023 slowdown is particularly significant, with enterprises now actively pursuing cloud migrations to support their AI initiatives. The increased number of mega-deals (10+ per quarter for three consecutive quarters) indicates that large-scale digital transformation projects are becoming more common, suggesting a maturing market for advanced technology services.
The uptick in smaller deals (
Combined market ACV up
Managed services growth slows to less than
Combined market ACV hits record
ISG forecasts
Data from the ISG Index™, which measures commercial outsourcing contracts with annual contract value (ACV) of
A sharp increase in cloud spending propelled market growth this past quarter, with ACV for cloud services up 33 percent versus the prior year, to
“Demand for cloud services continued its upward trajectory – a complete turnaround from the down market it faced in 2023,” said Steve Hall, president of ISG, and the firm’s chief AI officer. “We’re seeing enterprises reaccelerating their cloud migrations and looking to the cloud to power their AI ambitions. This is great news for the big three hyperscalers and their ecosystem partners, which are building more and more AI apps on hyperscaler platforms. Indeed, AI now accounts for about 6 percent of provider revenues – and climbing.”
Managed services, meanwhile, grew at a much more modest pace, up 2.6 percent in the fourth quarter, to
During the fourth quarter, 715 managed services contracts were awarded, up 6 percent from the prior year. Among them were 10 mega-deals (contracts with annual value of
At the same time, the number of deals on the other end of the spectrum (those valued at between
Full-Year Results
Combined market ACV for the full year was a record
The ACV of cloud-based services reached a record
Managed services ACV advanced less than 2 percent, to a record
A total of 2,868 managed services contracts were awarded in 2024, up nearly 5 percent from the prior year, including 34 mega-deals, one less than in 2023. Meanwhile, the number of new-scope awards (1,926) and their combined ACV (
“Managed services bookings grew at a slower pace in 2024 compared with the previous two years, primarily due to continued pressure on discretionary spending, especially in the banking and manufacturing sectors, which make up nearly half of the contract value in the market,” Hall said. “That cost pressure, however, led to a second consecutive year of strong mega-deal activity as enterprises looked to move the needle on their cost profile through large-scale transformations.”
Hall said enterprise decision-making accelerated in the second half of 2024, noting an increase in the number of smaller deals in the
2025 Forecast
For the full year, ISG is forecasting 4.5 percent revenue growth for managed services, and 18 percent revenue growth for cloud-based services (as-a-service or XaaS).
“Looking at 2025, we expect a gradual recovery in enterprise demand for IT and business services,” Hall said. “We base our view on the likelihood the
“At the same time, we see several macroeconomic tailwinds at play,” Hall continued. “AI spending continues to gain momentum, with hundreds of billions being spent on infrastructure, setting the stage for widespread adoption among enterprises and individuals. Productivity gains from AI are expected to be substantial, presenting a massive market opportunity. In managed services, we're seeing early signs of improvement in the BFSI [banking, financial services and insurance] sector as discretionary spending begins to pick up. Broader market demand could also improve, thanks to greater clarity on the rate-cutting cycle, enterprises acknowledging their growing technical debt, and the rapidly increasing demand for GenAI.”
About the ISG Index™
The ISG Index™ is recognized as the authoritative source for marketplace intelligence on the global technology and business services industry. For 89 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.
The 4Q24 Global ISG Index results were presented during a webcast today. To view a replay of the webcast and download presentation slides, visit this webpage.
About ISG
ISG (Information Services Group) (Nasdaq: III) 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’s 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 AI, 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20250116043493/en/
Press Contacts:
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
isg@matternow.com
Source: Information Services Group, Inc.
FAQ
What was ISG's (III) Q4 2024 combined market ACV and growth rate?
How much did cloud services grow in Q4 2024 according to ISG (III)?
What is ISG's (III) forecast for XaaS and managed services growth in 2025?
How many mega-deals did ISG (III) report for the full year 2024?