Hello. This is Stanton Jones with your weekly briefing on what’s important in IT and business services.
In this edition: The IT and business services market is on pace to hit the highest number of contract awards in a year. Colocation providers are growing their global footprints. HCM software provider adds workplace assessment and certification to its portfolio.
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The IT and business services market is on pace to execute the most contract awards ever in a single year. In the first half of 2021, there were 1,025 managed services awards over $5 million in ACV (see Data Watch). If the second half of the year sees the same or a higher number of awards – which it typically does – that puts the market on pace to reach more than 2,000 managed services awards in a single year. This would beat the previous record set in 2018.
Our POV: Colocation providers are part of ISG's IaaS market segment – which saw nearly 30% growth in the first half of the year compared to the same time last year. In response to increased demand for data sovereignty, especially in Europe – and to capture fast-growing digital opportunities, especially in Southeast Asia – colocation providers will continue to push their aggressive expansion plans, fueling continued growth in this segment.
You can find more detail on strengths and challenges for colocation providers here.