Steve, Kathy, Johanna and I will be sharing the hot-off-the-press second quarter data, our updated 2021 forecast and some really interesting insights on the Insurance industry. And like last quarter, we’ll do a rapid-fire rundown of some of the key themes in IT and business services from the quarter. Register here.
In anticipation of the release of the second-quarter results next week, here’s a quick recap of the key findings from the first quarter.
TOP FINDINGS FROM 1Q21
Global combined market ACV was up 11% year over year. The first quarter of 2021 was the first time ever that the combined market exceeded $17 billion.
Managed services started to return to pre-pandemic norms in the first quarter. ACV was up 7% year over year – and topped $7 billion for the second consecutive quarter. More than 500 managed services contracts were awarded in 1Q21.
As-a-service ACV had its best quarter ever and was up 15% year over year.
DATA WATCH
SERVICE LINE RESULTS 1Q21
ITO ACV was up slightly year over year and up 19% from 2Q20 lows. Applications had its best quarter ever. BPO was up 43 percent year over year with strong growth in industry-specific BPO and ER&D.
IaaS ACV surpassed $7 billion for the first time in 1Q21, but year over year growth decelerated. SaaS ACV grew by 7%.
REGIONAL RESULTS FROM 1Q21
In the Americas, 1Q21 combined market ACV was up 6% year over year. Managed services ACV was down 1% year over year. As-a-service ACV was up 11% year over year, making 1Q21 the first ever $5 billion as-a-service quarter in the Americas.
And in EMEA, combined market ACV of $6 billion was up 20% year over year. Managed services ACV was up 23% year over year on the back of a second straight $3 billion quarter. As-a-service ACV was up 16% year over year, a new high for the region.
Finally, in Asia Pacific, 1Q21 combined market ACV was up 11%, but managed services ACV was down 25% year over year, with contracting activity the lowest it’s been in five years. As-a-service ACV was up 22% year over year and was on par with the previous quarter.
About the author
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 CIO.com, and has appeared on national cable news.
