Business
Europe’s Tech Services Market Hits New High in Q4, on Strong AI, Cloud, Managed Services Demand: ISG Index™
LONDON, January 19, 2026--Demand for technology services in Europe reached a new high in the fourth quarter as the region turned in its best performance of 2025: ISG Index.
About this update from Information Services Group, Inc.
[{"type":"image","alt":"","displaySize":"","headline":null,"caption":"","credit":null,"className":"","disableSlideshowImg":false,"size":{"original":{"width":480,"height":330,"url":"https://media.zenfs.com/en/business-wire.com/24eeb0151f034e22cb15a668352b74dc"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/BzwuacZe9Dz0Xh8CX2HPRg--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY2MDtjZj13ZWJw/https://media.zenfs.com/en/business-wire.com/24eeb0151f034e22cb15a668352b74dc","width":480,"height":330}},"lazy":false},{"type":"text","content":"Combined market ACV up 27%, to record US $10.9 billion","length":54,"tagName":"p","attribs":{}},{"type":"text","content":"Managed services ACV up 19%, while XaaS soars 34%","length":49,"tagName":"p","attribs":{}},{"type":"text","content":"LONDON, January 19, 2026--(BUSINESS WIRE)--Demand for technology services in Europe reached a new high in the fourth quarter as the region turned in its best quarterly performance of the year to close out 2025, according to the latest state-of-the-industry report from Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.","length":376,"tagName":"p"},{"type":"text","content":"The EMEA ISG Index™, which measures commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows fourth-quarter ACV for the combined market (both managed services and cloud-based as-a-service) advanced 27 percent, to a record US $10.9 billion. It was the region’s eighth consecutive quarter of combined market growth, averaging 16 percent in that span.","length":389,"tagName":"p"},{"type":"text","content":""Europe saved its best for last, with accelerating, AI-fueled demand for cloud services, coupled with renewed momentum in managed services, leading the region to its strongest quarterly performance of 2025," said Anthony Drake, president, ISG EMEA. "We also saw surging demand for engineering services relate to AI, and overall deal sizes expanded. While full-year managed services ACV finished roughly flat, the strong Q4 suggests stabilization and improving confidence heading into 2026."","length":510,"tagName":"p"},{"type":"text","content":"Q4 Results by Segment","length":21,"tagName":"p"},{"type":"text","content":"Managed services ACV for the fourth quarter rose 19 percent year on year, to US $4.6 billion, and was up 2...