IT and Business Services Industry Update for 4Q 2024

This document is an industry update report focusing on the IT and business services sector for the fourth quarter of 2024. It outlines key trends in managed services, including a flat annual contract value (ACV) and robust megadeal activity. The report highlights that while BFSI spending in the U.S. is recovering, the EMEA region continues to lag. It presents quarterly trends showing a significant increase in the combined market, surpassing $28 billion for the first time. The report details the performance of various segments, including Infrastructure as a Service (IaaS) and Software as a Service (SaaS), noting a strong growth trajectory for IaaS and a turnaround for SaaS. Additionally, it discusses the overall market outlook for 2025, indicating a gradual recovery in growth, particularly in the BFSI sector, while cautioning about potential challenges in manufacturing and European markets. The document concludes with insights into technology spending allocations and the evolving services ecosystem.