market activity
The IT and business services market is on pace to execute the most contract awards ever in a single year. In the first half of 2021, there were 1,025 managed services awards over $5 million in ACV (see Data Watch). If the second half of the year sees the same or a higher number of awards – which it typically does – that puts the market on pace to reach more than 2,000 managed services awards in a single year. This would beat the previous record set in 2018.
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colocation services
Colocation providers are growing their global footprints. For example, Digital Realty continues to double down in Europe – especially in France – as it opens its third Paris-based data center (link). In Q2 of this year, it broke ground on a new interconnection hub in Marseilles. And Equinix is betting on continued strong GDP growth in India, as it closes its $160 million acquisition of two Mumbai-based data centers from GPX Global Systems (link).
Our POV: Colocation providers are part of ISG's IaaS market segment – which saw nearly 30% growth in the first half of the year compared to the same time last year. In response to increased demand for data sovereignty, especially in Europe – and to capture fast-growing digital opportunities, especially in Southeast Asia – colocation providers will continue to push their aggressive expansion plans, fueling continued growth in this segment.
You can find more detail on strengths and challenges for colocation providers here. | | |
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deal activity
- Kansas Department for Children and Families and Conduent. Child support agency migrating case management system from mainframe to Azure (link).
- Bank BPS and Asseco. Polish bank signs 10-year core banking agreement (link).
- JICA and Accenture. Japanese social and economic aid organization piloting digital initiatives across Asia (link).
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M&A; alliances
- HCM provider UKG acquires workplace assessment and certification firm Great Place to Work (link).
- Accenture acquires Canadian healthcare consultancy Gevity (link).
- Location data platform provider HERE jointly developing real-time monitoring and tracking solutions with Wipro (link).
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isg insiders
Stanton Jones, Alex Bakker, Cynthia Batty, Dr. Daniel Gerster, Doug Saylors, Missy Lawrence-Johnson, Mrinal Rai, Ron Exler, Sashidharan Balasundaram, Steve Hall, Sunder Sarangan, Troy Williams
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