Hello. This is Stanton Jones with what’s important in the IT and business services industry this week.
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The Americas managed services market has seen a return to growth in 2025 primarily due to banking and financial services, while demand in the EMEA region continues to be sluggish on macroeconomic and geopolitical concerns.
As we discussed on the 3Q25 Index Call last week, managed services bookings are largely flat year to date, with continued business uncertainty weighing on demand. The story is different, though, between the Americas and EMEA. As you can see in this week’s Data Watch, the Americas has seen a return to growth, while EMEA has been on a somewhat downward trajectory. Results have been softening since the blowout quarter of 3Q24, when six mega deals with an ACV of $1.3 billion were awarded.
In the Americas, BFSI has turned into a real growth engine. Banks are reporting record earnings this quarter, which could lead to a loosening of discretionary technology spending. And, as we discussed on the call, we’re seeing strong momentum at both ends of the outsourcing spectrum, from large-scale renewals to smaller, sub-$10 million awards that had been quiet earlier this year.
In EMEA, energy costs, tariff concerns and geopolitical tensions are leading to business uncertainty, which is having a downstream impact on tech services spending. These factors don’t appear to be abating any time soon, which means the slow discretionary spending environment is likely to continue in the region.
In short, we’re seeing signs of a recovery in managed services, but it’s regional, not global. And, based on the signals we’re seeing today, we believe these trends are likely to continue into early 2026.