Demand for traditional managed services in APAC remained strong in the second quarter, even as spending on cloud services continued to slide, according to the latest state-of-the-industry report from Information Services Group ISG.<\/p>\n\n\n\n
The Asia Pacific ISG Index, measuring commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows second-quarter ACV for the combined market – both cloud-based XaaS and managed services – fell 18% versus the prior year, to US $4.0 billion, dragged down by a sharp and continuing decline in the XaaS segment.<\/p>\n\n\n\n
ACV for XaaS was down 28% percent for the quarter to US $2.9 billion, the lowest such mark since the third quarter of 2020 and the fourth quarter in a row that the XaaS market has contracted year over year.<\/p>\n\n\n\n
Demand for managed services rose significantly, with second-quarter ACV up 30% to US $1.1 billion, from the prior year.<\/p>\n\n\n\n
\u201cEnterprises in Asia Pacific are increasing their spending on traditional IT and business services outsourcing as a lever for cost optimization in an uncertain economy,\u201d said Scott Bertsch, partner and regional leader, ISG Asia Pacific<\/p>\n\n\n\n
\u201cThe cloud sector, meanwhile, continues to suffer a reversal of fortune. Enterprises that scaled up quickly during the pandemic are now rationalizing their cloud costs and postponing discretionary cloud spending.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Demand for traditional managed services in APAC remained strong in the second quarter, even as spending on cloud services continued to slide, according to the latest state-of-the-industry report from Information Services Group ISG. The Asia Pacific ISG Index, measuring commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows second-quarter […]<\/p>\n","protected":false},"author":58,"featured_media":28453,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1463,50,12,44,54],"tags":[157,4679,79,4656,4678,2577],"class_list":["post-28452","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-apac","category-case-study-newsletter","category-intelligent-technologies-cloud","category-top-stories","category-used","tag-apac","tag-asia-pacific-isg-index","tag-cloud","tag-information-services-group","tag-isg","tag-managed-services"],"acf":[],"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/www.intelligentcio.com\/apac\/wp-json\/wp\/v2\/posts\/28452","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.intelligentcio.com\/apac\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.intelligentcio.com\/apac\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.intelligentcio.com\/apac\/wp-json\/wp\/v2\/users\/58"}],"replies":[{"embeddable":true,"href":"https:\/\/www.intelligentcio.com\/apac\/wp-json\/wp\/v2\/comments?post=28452"}],"version-history":[{"count":5,"href":"https:\/\/www.intelligentcio.com\/apac\/wp-json\/wp\/v2\/posts\/28452\/revisions"}],"predecessor-version":[{"id":28777,"href":"https:\/\/www.intelligentcio.com\/apac\/wp-json\/wp\/v2\/posts\/28452\/revisions\/28777"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.intelligentcio.com\/apac\/wp-json\/wp\/v2\/media\/28453"}],"wp:attachment":[{"href":"https:\/\/www.intelligentcio.com\/apac\/wp-json\/wp\/v2\/media?parent=28452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.intelligentcio.com\/apac\/wp-json\/wp\/v2\/categories?post=28452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.intelligentcio.com\/apac\/wp-json\/wp\/v2\/tags?post=28452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}