ISG Cuts As-A-Services ACV Growth Outlook Modestly: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.ISG (a leading global technology research and advisory firm) conducted its Q1 CY23 index call to discuss key technology trends and ordering activity across industry verticals and geographies. For Q1 CY23, overall annual contract value of ordering activity) came in at $24.1 billion, up 0.8% QoQ and down 7.7% YoY, wherein strength in managed services (at $9.8 billion, up 2.1% QoQ and 1% YoY) was offset by weakness in as-a-services ACV (at $14.3 billion, flat QoQ and down 7.7% YoY). Importantly, for CY23, ISG has lowered its as-a-services ACV growth forecast from 17% to 15% due to slowdown in discretionary spending in banking, financial services and insurance vertical. It expects the decline in booking to continue in Q2 CY23 followed by a sharp pick up in H2 CY23. It, however, maintained its managed services growth outlook at 5%, given its high focus on cost optimisation agenda of clients. Globally, as-a-services ACV declined sharply on a YoY basis wherein the ACV of three hyperscalers (AWS, Azure and GCP) experienced its first decline YoY in the history, down 12% YoY. Clients slowed down their cloud migration journeys and are optimising workloads on cloud. Infrastructure-as-a-service) ACV declined 16% YoY. Both IaaS and software-as-a-service) ACV declined YoY due to slowdown in discretionary spending by clients and longer sales cycles..Click on the attachment to read the full report:.Infosys, TCS Woes Not Limited To BFSI Pain Alone.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ISG Cuts As-A-Services ACV Growth Outlook Modestly: ICICI Securities

Maintains managed services growth forecast.

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