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:
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- Aggregate revenue declined quarter on quarter (QOQ) primarily due to seasonality.
- Incremental investments, acquisitions and wage hikes drive a decline in aggregate operating margins, with Indian heritage providers consistently outperforming global MNCs.
- Agentic AI and GCCs emerge as the prospective growth areas for service providers.
- Hiring momentum reduced significantly in this quarter compared to the past two quarters. Meanwhile, attrition rates increased for the fourth consecutive quarter.