Index Insider: What Will Tech Demand Look Like in 2H24?


Hello. This is Stanton Jones and Steve Hall with a special preview of the ISG Index 2Q24 call next Thursday, July 11, at 9:00 AM U.S. ET. Reserve your spot for the call here.

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2Q24 Index Preview

Cost optimization continues to be the primary driver of managed services demand; enterprise discretionary spending remains under pressure. Still, we see deal decision-making improving in some areas, and demand for generative AI-related project work remains very strong.

Questions we’ll address on the call:

  • When will discretionary spending free up? An interest rate cut in the U.S. could spur increased discretionary technology spending in Q4 2024, but we don’t see that having a material impact on the full year. This will likely keep the industry in the low single-digit growth range for 2024.
  • Is generative AI creating new demand for enterprise software? We see very strong interest from enterprise technology leaders in adding AI to their existing software portfolio. However, given the level of customization most enterprises have today in their business applications, it will take longer than anticipated to realize value from these investments.
  • Is the strong global capability center (GCC) activity impacting IT services demand? As we’ve discussed over the past 12 months, GCC activity continues to be very strong. However, enterprise interest in scaling down or exiting a GCC is just as common as interest in building or scaling up a GCC. This means there is both opportunity and risk for providers as the GCC wave continues.
  • How is AI impacting IT service provider productivity? As of today, we’re seeing only minimal impact of GenAI on service provider productivity. However, we do expect over time to see a significantly bigger impact, especially in areas like testing, coding and customer experience.

Register for the Call

I hope you can join Steve, Kathy, Namratha, Dave and me on the call next Thursday, July 11, at 9:00 AM U.S. ET. We’ll review these key questions and discuss our forecast for the remainder of the year. Don’t forget to register here.


About the authors

Stanton Jones

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, and has appeared on national cable news.

Steve Hall

Steve Hall

What he does at ISG

As the leader of ISG’s business in EMEA and an Executive Board Member, Steve provides strategic insight and advice to help ISG’s clients solve their most critical business challenges, helping them adopt and optimize the technology and operating models they need to compete successfully. In particular, he uses his long experience and broad expertise to challenge and inspire them to think about their risks and opportunities in new and unexpected ways.

Past achievements for clients

Steve leads his team’s engagement with clients with an industry-recognized and highly valued perspective on the most important trends in business and technology. He asks and answers the big questions: Why do you need to transform? What’s your best way forward? What do you need to accelerate? And where should you invest your technology dollars to make it all happen?

Among his many client success stories, his ability to take in the big picture, define the problem and connect the dots to the right solutions helped one legacy postal and shipping giant transform itself into a modern logistics powerhouse. He also guided a global energy industry leader through a complex operating model and IT provider transition, helping them see past the obvious cost cutting measures to identify the root causes of their challenges—and delivering savings far beyond what they had imagined.