3,882
edits
Freelance & Outsourcing Industry: Difference between revisions
no edit summary
No edit summary |
No edit summary |
||
| Line 561: | Line 561: | ||
=== Developments === | === Developments === | ||
==== Q1 2023 ISG Index ==== | |||
Data from the ISG Index, which measures commercial outsourcing contracts with annual contract value (ACV) of $5 million or more<ref>https://ir.isg-one.com/news-market-information/press-releases/news-details/2023/Global-Spending-on-IT-and-Business-Services-Down-8-in-Q1-ISG-Index-Finds/default.aspx</ref> | |||
Global spending on IT and business services in the first quarter fell sharply from an all-time high in the prior year, as modest growth in managed services failed to overcome continuing weakness in cloud demand | |||
* First-quarter ACV for the combined global market (both as-a-service and managed services) was $24.1 billion, down 8 percent from a market peak in the first quarter of 2022. | |||
* Sequentially, the global combined market grew 1 percent, ending a streak of three consecutive quarters of decelerating results. | |||
===== Managed Services Segment ===== | |||
* Global managed services ACV reached an all-time quarterly high of $9.8 billion in the first quarter, up 1 percent versus the prior year and up 2 percent over the fourth quarter. | |||
* During the first quarter, 703 contracts were signed, down 1.5 percent against record volume in the 2022 first quarter, but up 2 percent sequentially. | |||
* IT outsourcing (ITO) ACV rose 7 percent, to $6.8 billion, fueled by growth in application development and maintenance (ADM) services, which advanced 23 percent in the quarter and now represents more than 65 percent of ITO ACV. | |||
* Business process outsourcing (BPO), at $3.0 billion, declined 10 percent against a record first quarter in 2022. | |||
===== As-a-service (XaaS) Segment ===== | |||
* ACV was $14.3 billion, down 13 percent, the fourth consecutive quarter of sequentially declining results following a record first quarter in 2022. | |||
* Infrastructure-as-a-service (IaaS) fell 16 percent, to $10.4 billion, the second straight quarter of declining year-over-year ACV in this segment. | |||
* The Big Three hyperscalers saw their combined ACV drop 12 percent in the quarter, the first time they have experienced declining quarterly ACV versus the prior year. | |||
* Software-as-a-service (SaaS), likewise, saw a drop in ACV in the first quarter, down 4 percent from the prior year, to $3.9 billion. | |||
===== '''2023 Forecast''' ===== | |||
ISG lowered its forecast for XaaS revenue growth in 2023 to 15 percent, down 200 basis points from its January forecast, and maintained its growth forecast for managed services at 5 percent. | |||
“The macro environment remains uncertain, with interest rates, inflation and trouble in the banking sector topping concerns for enterprise clients,” said Hall. “There continues to be more scrutiny on deal signings, especially in discretionary spending areas. Enterprises are revisiting cost optimization, efficiency gains and vendor consolidation deals.” | |||
=== Outsourcing 2008-2009 Recession === | === Outsourcing 2008-2009 Recession === | ||