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CONTRACTING
As we discussed on the 1Q22 Index call this week, IT services contracting activity was very strong this quarter. Managed services generated $8.6 billion of ACV, which was up 13% Y/Y. There were more than 600 managed services awards over $5 million ACV, including six mega deals (ACV > $100M) signed this quarter, up from four this time last year.
As-a-service results were very strong as well. The market added more than $15 billion of ACV this quarter, which was up 43% Y/Y (see Data Watch). That’s three consecutive quarters of more than 40% growth, which hasn’t happened since 2018.
If you're interested in a deeper dive into the 1Q22 ACV data, I’m excited to announce our new quarterly contracting intelligence brief. It’s available to Index subscription clients and as a downloadable purchase. If you’re interested in learning more about it, please let me know.
DATA WATCH
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.
