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 continues to grow with clients’ focus on AI-led transformation and cost optimization initiatives
- Aggregate margins were stable QOQ, driven by non-recurring factors like asset restructuring gains and optimization-related costs
- Demand remains cautiously optimistic with clients prioritizing AI, modernization, and vendor consolidation
- Providers are reshaping their workforce, balancing careful hiring with large-scale AI reskilling