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What is Happening?

As we detailed in this week’s 4Q 2017 ISG Index™ announcement, 2017 started and ended strong. Annual Contract Value (ACV) for the combined market bested the record high set in the first quarter of 2017. Eight of the past nine quarters have exceeded $9 billion. Disruption by digital competition is pushing a switch from traditional products to new technology, with a strong focus on cloud transformation and automation. The combination of those two factors is driving much of the growth. Traditional Sourcing again surpassed $6 billion in ACV, as it has for three of the past four quarters. As-a-Service broke through the $5 billion mark for the first time this quarter.

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About the author

Stanton Jones

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.

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