Hello. This is Stanton Jones with the key takeaways from the Q4 and full-year 2024 ISG Global Index Call. You can watch a replay of the call here and download the slides here.
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Q4 and Full-Year 2024 Recap
Data Watch
What You Need to Know
- Managed services was flat in 2024. Sustained pressure on discretionary spending in 2024 had an outsized impact on application development and maintenance services, which makes up more than 60% of the annual contract value (ACV) in the IT and business services industry.
- Megadeal activity was strong. There were 34 deals with an ACV of $100 million or more in 2024. A record 69 megadeals were awarded over the past 24 months, as enterprises continued to focus on using large transformation programs to optimize costs.
- BFSI is recovering. BFSI ACV was down 6% in 2024, but signs show this sector is recovering. Americas BFSI ACV was up 21% Y/Y in the fourth quarter, and we’re seeing early signs that discretionary spending for clients is starting to pick back up.
- As-a-Service continues to accelerate. The combined market of IaaS and SaaS was up 19% in 2024, a huge shift from 2023 when this sector was down 15%. Growth was largely in IaaS, as enterprises are ramping up cloud migrations and spending more on AI.
- 2025 will see stronger growth. We’re forecasting 4.5% growth for managed services in 2025, up from the 1.6% growth we saw in 2024. For the As-a-Service segment, we’re forecasting 18% growth, in line with 2024 results.
About the author
Stanton Jones
Stanton leads ISG's Index research, helping providers, investors and ISG clients make sense of the global IT services sector. Stanton’s weekly newsletter, the Index Insider, is read by thousands of market stakeholders each week. An ISG Digital Fellow, Stanton has been quoted in Fast Company, Forbes and CIO.com, and has appeared on national cable news.
