The outsourcing industry is bearing up relatively well to world events but it’s not immune and there have been fluctuations. That’s the overall picture from ISG’s Index, which shows cloud services growing above all others.
In fact the worldwide cloud market grew to over €1bn for the first time, according to the 1Q17 EMEA ISG Index™. The combined commercial market reached €3.5 billion in the first quarter of 2017, up more than 19 percent sequentially and year on year. The as-a-service segment rose steadily, with values increasing 48 percent over last year, and 13 percent sequentially from the fourth quarter of 2016, as organisations increasingly embrace digital solutions
This marks an appreciable difference between everybody talking about cloud (which they’ve been doing for ages) and people actually using it and paying for it, which is a different thing. We’re noticing the same thing in robotics at Intelligent Sourcing; people were talking a lot about it a couple of years ago and now we’re coming across actual use cases.
There has, however, been a slow-down in the public sector in particular across EMRA. This is a lot to do with political uncertainty; yesterday’s news of Emmanuel Macron’s succession to the presidency will have reassured many because the far right hasn’t taken over in France; however, he’s still an inexperienced and untried politician, with “president” as his first job in office. The American president is of course also a first-timer while Brexit’s ultimate shape continues to be uncertain.
John Keppel, partner and president of ISG, remains positive: “There is a lot to be positive about, with the EMEA market showing strength in both traditional sourcing and as-a-service contracting,” he said. “After a slow start, as-a-service continues to go from strength to strength. As a result of this and some robust activity in traditional sourcing, we expect high single-digit gains in the EMEA market for the rest of 2017.”