Managed IT Services Hit $26.7B with 15.1% Growth, Mega-Deals Lead By CIOTechOutlook Team

Managed IT Services Hit $26.7B with 15.1% Growth, Mega-Deals Lead

CIOTechOutlook Team | Tuesday, 19 November 2024, 10:45 IST

Under managed IT services, entire deals raised 15.1% year-on-year to a record $26.7 billion, driven by increased mega-deal activity and longer deal durations, as per report by Nuvama (formerly Edelweiss) Institutional Equities. “As we get into the December and March quarters, it may soften a bit because of the holiday season,” Rakesh said.

The latter part of the fiscal year tends to be quiet for IT service providers because of the time after holidays and staff furloughs, resulting in less working days for employees as clients postpone their investments and project activities. Nevertheless, during the September quarter, most companies provided positive management commentary indicating a return of deal activity in the future, despite a reduction in employee hiring after seven consecutive quarters of decline.

In October, there were 16 deal victories, including three deals announced by Cognizant with du, FCCI Insurance Group, and Alnylam Pharmaceuticals, and two deals each secured by Tata Consultancy Services (TCS) and Infosys and Tech Mahindra. During the month, TCS secured projects from the Department of Social Protection and Insper, Infosys partnered with Old National Bank and Zooplus, and TechM landed deals with Payoneer and Ooredoo Qatar.

The majority of the long-term contracts agreed upon consisted of a mix of renewals and new agreements, which included various digital transformation agreements. Most of the agreements include GenAI features to ensure they work with any technology, even if it's challenging to determine exact results or savings.