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), 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 market trends and Avasant’s viewpoint on the industry’s future direction.

Key service provider trends:

• Total aggregate YOY revenue growth indicates business expansion.
• Aggregate operating margin increased QOQ as providers emphasize sustainable growth through strategic cost optimization initiatives.
• Data and AI remain central to deals due to their strategic value proposition, which is reflected in growing deal volumes, increasing total contract value, and revenue contributions from generative AI.
• Hiring resumes for both fresher and lateral hires, with a positive net head count after six consecutive quarters of decline, aimed at refreshing the staffing pyramid for new projects.