Fourth quarter results by segment
Posted: Thu Jan 30, 2025 3:27 am
The ACV of managed services for the fourth quarter was down 5 percent year-over-year to US$3.7 billion and was 25 percent lower sequentially than the record third quarter. 283 managed services contracts were awarded in the quarter, up 10 percent from the prior year, but down 8 percent quarter-over-quarter. During the fourth quarter, only one mega-deal (a contract with an annual value of $100 million or more) was awarded, down significantly from the six mega-deals awarded in the third quarter. At the other end of the spectrum, deals in the US$5 million to US$9 million category, the smallest as measured by the ISG Index, increased 12 percent from the previous year.
Among managed services, IT outsourcing (ITO) fell 7 percent year india rcs data -on-year to US$2.7 billion, pushed down by an 18 percent decline in development and application services, the largest ITO segment. Business process outsourcing (BPO), meanwhile, supported by facilities management and HR services, rose 2 percent to US$992 million.
This ACV. Cloud-based services-as-a-service ( XaaS ) segment grew 42 percent year-over-year to US$4.6 billion, up 14 percent from the previous quarter. The market’s year-over-year percentage growth was the highest in a quarter since the second quarter of 2022. Over the past four quarters, demand for cloud services in Europe has grown by an average of 23.5 percent per quarter.
Both infrastructure-as-a-service (IaaS) and software-as-a-service ( SaaS ) performed strongly in the fourth quarter. IaaS grew 52 percent year-over-year to $3.4 billion, while SaaS grew 21 percent to $1.2 billion.
Among managed services, IT outsourcing (ITO) fell 7 percent year india rcs data -on-year to US$2.7 billion, pushed down by an 18 percent decline in development and application services, the largest ITO segment. Business process outsourcing (BPO), meanwhile, supported by facilities management and HR services, rose 2 percent to US$992 million.
This ACV. Cloud-based services-as-a-service ( XaaS ) segment grew 42 percent year-over-year to US$4.6 billion, up 14 percent from the previous quarter. The market’s year-over-year percentage growth was the highest in a quarter since the second quarter of 2022. Over the past four quarters, demand for cloud services in Europe has grown by an average of 23.5 percent per quarter.
Both infrastructure-as-a-service (IaaS) and software-as-a-service ( SaaS ) performed strongly in the fourth quarter. IaaS grew 52 percent year-over-year to $3.4 billion, while SaaS grew 21 percent to $1.2 billion.