IT outsourcing spending reached $28.8bn in Q3
The IT outsourcing industry is thriving as businesses spend US$21.8 billion on tech and related business services in the third quarter of 2021, said tech research and advisory company Information Services Group (ISG).
About 61% of that figure, or US$13.4 billion, was spent on cloud-as-a-service contracts, showing a 55% increase compared to the same period last year. Meanwhile, the total value of managed service contracts also increased by 40%, hitting 8.4 billion.
ISG President Steve Hall said that the current surge is a “real structural shift” as companies accelerated their digital transformation and shift to cloud services.
The report also stated that cloud-as-a-service solutions spending reached US$3.3 billion, up 59% year-on-year, while IaaS contracts summed up to US$2.4 billion and SaaS contracts hit US$930 million.
ISG expects the IaaS and SaaS contracts will increase by “a quarter more” compared to last year and that managed services will rise by 10% a the end of the year.
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