COVID-19 pulls down global sourcing market down by 5% in Q2: ISG Index

Mumbai: Global sourcing slowed dramatically in the second quarter, as enterprises sharply reduced managed services spending to contend with the impacts of the COVID-19 pandemic according to an industry report by global advisory firm, Information Services Group. Data from the ISG Index shows that annual contract value for Q2 for the combined global market (both as-a-service and managed services) declined 5% to $13.2 billion. Cloud-based as-a-service sourcing, on the other hand, was up 7%t, to $7.2 billion.

“In line with our prediction last quarter, the managed services market was off 16 percent as enterprises reined in operating expenses in the face of a pandemic-related slowdown in business activity,” said Steve Hall, partner and president of ISG.