Index Insider: Contract value in DACH is returning to historical levels

Hello. This is Stanton Jones with your weekly briefing on what’s important in IT and business services.
In this edition: Annual contract value in DACH is returning to historical levels. Swedish capital city signs seven-year full ITO deal. Concentrix makes $1.6 billion bet on customer experience.
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Historically, the DACH region has produced the second most ACV in Europe behind the U.K. On a YTD basis, bookings in DACH are up 10%. But, by the end of the year, the region’s ACV will more than likely be down compared to 2020. This isn’t a sign of weakness in the market – it’s just that ACV is returning to historical levels.
The DACH region had a blowout quarter in 4Q20 (see Data Watch). There was $2 billion of ACV signed that quarter, but nearly 70% of it came from just three deals: Daimler and InfosysPostbank and TCS, and Siemens and Atos.
The big three industries that drive the majority of the ACV in the region are returning to historical levels as well. BFSI remains at around the same level as 2019, while life sciences, which had a big spike in 2019, and manufacturing, which had a banner year in 2020, have both settled back to their normal levels.
So, while a short-term view may indicate a soft year for a region or an industry, these results remind us of the importance of taking a longer-term view when comparing results in the IT services sector.


DACH ACV Spiked  in 4Q20 but is Returning to Historic Levels


  • City of Stockholm and TietoEVRY. Swedish capital signs seven-year full ITO deal (link).
  • Proximus and Infosys. Largest telecom provider in Belgium signs application extension (link).
  • South32 and TCS. Australian mining company modernizing applications and infrastructure (link).
  • Waka Kotahi and Unisys. New Zealand transportation agency extends application and infrastructure relationship for 10 years (link).


  • Concentrix acquiring CX design firm PK for $1.6 billion (link).
  • Accenture acquires Austin-based cloud native engineering firm Headspring (link).
  • IBM acquires Australian hybrid cloud consulting firm SXiQ (link).
  • Communications platform provider 8x8 acquiring Fuze for $250 million (link).

About the author

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.