Hello. This is Stanton Jones with a special edition recap of the 2Q25 ISG Index call. You can catch a replay of the call here, and the slides here.
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First Half 2025 Recap
- Service lines: ITO up 8%; BPO down 25%; Engineering up 31%
- Regions: Americas up 11%; EMEA up 3%; Asia-Pacific down 34%
- Industries: BFSI up 5%; Energy up 24%; CPG & Retail down 9%
As-a-service YTD Results
- Application categories: CRM down 8%; ERP up 5%; ITSM up 90%
- IaaS Regions: Americas up 42%; EMEA up 41%; Asia Pacific up 17%
- Big 3 hyperscalers: up 43%
The macro-outlook has improved from 90 days ago; however, business uncertainty remains elevated, which is delaying decisions. We believe this will continue to be the case through the rest of 2025. Cost optimization will remain a strong focus for managed services, while AI will drive more cloud adoption.
- Managed services: 1.3% growth, which is at the high-end of the range we projected in Q1
- As-a-Service: 21% growth, which is a 300-basis point increase from Q1
You can catch a replay of the call here and download the slides here.
About the author
Stanton Jones
Stanton helps enterprise technology leaders, IT service providers and buy- and sell-side professionals make sense of the global IT services sector. Stanton's weekly briefing - the Index Insider - is read by thousands of industry stakeholders each week.
