The ISG Index is an authoritative source of data on the global technology and business services industry. For 70 quarters, it has provided financial analysts, buyers, providers, law firms, universities, and media with detailed industry data and trends. The document summarizes data from the ISG Index showing that in Q2 2020, the global sourcing market declined 5% due to COVID-19, with the Americas seeing a 6.5% decline and Asia Pacific a 9% decline, while business services grew 18% to $5.3 billion.

1. The ISG Index™ is recognized as the authoritative source for marketplace
intelligence on the global technology and business services industry. For 70
consecutive quarters, it has detailed the latest industry data and trends for
financial analysts, enterprise buyers, software and service providers, law firms,
universities and the media.
isg-one.com
2Q
2020COVID-19 Pulls Q2 Global
Sourcing Market Down 5%
IaaS
$2.7B 14%
SaaS
$1.2B 4%
Global Market
AMERICAS
EMEA
Global Forecast: 2020
ASIA PACIFIC
Fastest-Growing Industry for Sourcing*
Financial Services: $5.6B 11%
Business Services: $5.3B 18%
Manufacturing: $4.3B 1%
Telecom & Media: $2.7B 2%
Business Services: 18% to $5.3B
* 2020 YTD
* New Quarterly Record
As-a-Service
$3.9B 11%
Combined Market
$6.8B 6.5%
Managed Services
$2.9B 1%
ITO
$2.2B 18%
BPO
$730M 29%
* New Quarterly Record
As-a-Service
$1.4B 9%
Combined Market
$1.9B 24%
Managed Services
$529M 47%
* New Quarterly Record
As-a-Service
$1.9B 13%
Combined Market
$4.5B 9%
Managed Services
$2.6B 21%
Top Industries for Sourcing*
Combined market of $13.2B 5%
on double-digit decline in managed services
Managed Services: $6.0B 16%
ITO: 10% ($4.8B)
BPO: 34% ($1.2B)
Contract volume: 445 11%
As-a-Service: $7.2B 7%
IaaS: $5.4B 10.5%
SaaS: $1.8B 2%
IaaS
$1.4B 23%
SaaS
$479M 8%
ITO
$2.2B 19%
BPO
$396M 31%
IaaS
$1.2B 7%
SaaS
$165M 23%
ITO
$477M 42%
BPO
$52M 71%
ISG forecasting slight sequential growth in Q3 & Q4
Managed Services expected to be down 7.5% for FY
(compared with 7% decline forecast in April)
As COVID-19 still impacts the market ...