IT and Business Services Market Shows Recovery in Q2 2023: ISG Index Report
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[1]
Americas' Demand for IT and Business Services Rebounded in Q2, ISG Index™ Shows By Investing.com
Region's growth paced by XaaS demand, as managed services remains sluggish STAMFORD, Conn.--(BUSINESS WIRE)--Demand for IT and business services in the Americas rebounded in the second quarter as the region produced its best growth in two years, even as spending on managed services remained
[2]
Americas' Demand for IT and Business Services Rebounded in Q2, ISG Index™ Shows
Region's growth paced by XaaS demand, as managed services remains sluggish Demand for IT and business services in the Americas rebounded in the second quarter as the region produced its best growth in two years, even as spending on managed services remained sluggish, according to the latest
[3]
Americas' Demand for IT and Business Services Rebounded in Q2, ISG Index™ Shows - Information Servs Gr (NASDAQ:III)
Region's growth paced by XaaS demand, as managed services remains sluggish Demand for IT and business services in the Americas rebounded in the second quarter as the region produced its best growth in two years, even as spending on managed services remained sluggish, according to the latest
[4]
Europe's IT, Business Services Market Up Slightly in Q2: ISG Index™
Combined market up 1% in Q2, third straight quarter of sequential growth Market impacted by sluggish managed service demand, even as XaaS grows by double digits Europe's IT and business services market grew only slightly in the second quarter, as slowing demand for managed services largely offset
[5]
Europe's IT, Business Services Market Up Slightly in Q2: ISG Index™ By Investing.com
Combined market up 1% in Q2, third straight quarter of sequential growth Market impacted by sluggish managed service demand, even as XaaS grows by double digits LONDON--(BUSINESS WIRE)--Europe's IT and business services market grew only slightly in the second quarter, as slowing demand for
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The Information Services Group (ISG) Index reveals a rebound in IT and business services demand in the Americas during Q2 2023, while Europe experiences slight growth. The global market shows signs of recovery amid economic challenges.
Americas Market Rebounds in Q2
The IT and business services market in the Americas showed signs of recovery in the second quarter of 2023, according to the latest ISG Index™ report. The combined market, which includes both as-a-service and managed services, grew by 2% year-over-year to $12.2 billion
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. This growth marks a significant improvement from the previous quarter's 9% decline, indicating a potential turnaround in the market.As-a-Service Segment Leads Growth
The as-a-service (XaaS) segment emerged as the primary driver of growth in the Americas, with a 7% year-over-year increase to $6.8 billion
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. This growth was largely attributed to the rising demand for artificial intelligence (AI) and generative AI technologies. In contrast, the managed services segment experienced a 4% decline to $5.4 billion, although this represents an improvement from the 15% drop observed in the previous quarter.European Market Shows Modest Growth
While the Americas market rebounded, Europe's IT and business services market demonstrated modest growth in Q2 2023. The combined market in Europe grew by 2% year-over-year to €5.8 billion
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. The XaaS segment in Europe saw a 7% increase to €3.1 billion, while managed services remained flat at €2.7 billion compared to the same period last year.Global Market Trends and Outlook
The global IT and business services market is showing signs of stabilization and potential recovery. ISG predicts that the XaaS market will grow by 11% in 2023, while managed services are expected to remain flat
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. The increasing adoption of AI and cloud technologies is likely to drive growth in the coming quarters.Related Stories
Impact of Economic Factors
Despite the positive trends, economic challenges continue to influence the market. Inflation concerns and interest rate hikes have led to more cautious spending by enterprises
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. However, the need for digital transformation and the potential of AI technologies are encouraging businesses to invest in IT and business services.Regional Variations
While both the Americas and Europe showed growth, the patterns and drivers differ between the regions. The Americas' recovery was more pronounced, particularly in the XaaS segment, while Europe's growth was more modest across both XaaS and managed services. These regional variations highlight the importance of considering local market conditions and economic factors in assessing the global IT and business services landscape.
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