Key Points – ISG reported record tech spending in the second quarter, with combined managed services and as-a-service ACV hitting $42.3 billion, up 43% year over year and the first time the market topped $40 billion in a quarter. – AI-driven cloud and infrastructure demand led…
e surge, while traditional managed services stayed in low-single-digit growth. ISG raised its full-year as-a-service growth forecast to 30% but kept managed services growth guidance at 2.1%. – Regional and segment performance was uneven: EMEA and Asia Pacific improved, the Americas weakened, and business process outsourcing rebounded sharply while IT outsourcing and some application-development work remained under pressure. – These 4 Low P/E Tech Stocks Could be Breakout-Ready Bargains Information Services Group (NASDAQ:III) said technology demand continued to expand sharply in the second quarter, driven primarily by cloud-based software and infrastructure services tied to artificial intelligence, while traditional managed services remained in low-single-digit growth mode
On its 95th consecutive ISG Index call, the advisory firm said the combined market for managed services and “as-a-service” offerings reached $42.3 billion in annual contract value, or ACV, in the second quarter, up 43% from a year earlier. Stanton Jones, Distinguished Analyst at ISG, said it was the first time the combined market crossed $40 billion in a quarter and represented the highest growth rate ISG has recorded. For the first half of the year, combined market ACV reached $81.3 billion, up 35% year-over-year, compared with 18% growth at the same point in 2025.
As-a-Service Growth Outpaces Managed Services Jones said as-a-service continued to account for most of the market’s growth, reaching $31.5 billion in ACV during the quarter. First-half as-a-service ACV rose 53%, accelerating from 28% growth at the same point last year. Managed services showed a more muted picture.