In this quarterly report, Avasant provides key information on IT and apps managed services provider trends. The report covers key information on the IT services industry and the provider ecosystem. It covers the service provider facts and figures (including revenue and resource trends), macro trends, and executive sentiment from the service provider community. The report covers trends across a gamut of IT services, including but not limited to IT infrastructure, application, and end-user services. The geographic coverage for the report is global. It builds on insights gathered through ongoing market research, data collection, and proprietary databases. It includes market data from providers accessed through multiple sources such as public disclosures, market interactions, and deals data.

This report also highlights the key trends in the market and Avasant’s viewpoint on the industry’s future direction.

Key service provider trends:

• • QOQ revenue for providers declines while new bookings increase.
  • Growth in North America is declining, and clients continue to reprioritize spends.
  • Service providers maintain focus on improving margins.
  • Total head count for providers and attrition continues to decline, utilization is showing an upward trend.

Key Big Four trends:

• • Big Four continue to see revenue growth, albeit at a slower rate.
  • Significant growth in consulting services – and now contributes ~45% of overall revenues.
  • Continued execution toward utilizing their investments made in AI
  • Big Four continue to hire but with a slower pace compared to the previous year