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ISG Index™: Asia Pacific Sourcing Market Reaches Three-Year HighAsia Pacific Combined Market has generated ACV in excess of US$1 billion for four consecutive quarters As-a-Service accounts for more than two-thirds of the regional spend SYDNEY, May 1, 2017 /PRNewswire/ -- The Asia Pacific sourcing market, boosted by growing demand for cloud-based services, had its strongest performance in three years, according to the findings of the 1Q17 ISG Index™ released by Information Services Group (ISG) (NASDAQ: III), a leading global technology research and advisory firm. The ISG Index™, which measures commercial and public sector sourcing contracts with an annual contract value (ACV) of US$5 million or more, shows that the combined commercial market in Asia Pacific reached US$1.08 billion in the first quarter of 2017, up marginally from the fourth quarter of 2016 and 16 percent year on year. This was the region's strongest quarter for ACV since the beginning of 2014 and marked the fourth consecutive quarter it generated values in excess of US$1 billion, a record run for the region. The jump in combined ACV was propelled by rapid as-a-service growth, up 59 percent year on year. In the first quarter, the region's as-a-service segment accounted for more than two-thirds of the combined market value while traditional sourcing ACV sunk to its lowest level in a decade. From a trailing-12-month perspective, the Infrastructure-as-a-Service (IaaS) market soared 77 percent, while the Software-as-a-Service(SaaS) market declined 6 percent. In the traditional sourcing space, Information Technology Outsourcing (ITO) continued its climb out of the 2016 trough, up 8 percent in the trailing 12 months, while Business Process Outsourcing (BPO) slid by 48 percent, due to the absence of a megadeal that drove performance in the previous 12-month period. The region's largest sourcing industry, Telecom and Media, saw robust growth in the trailing 12 months, with as-a-service up 60 percent and traditional sourcing up 17 percent. Similarly, Financial Services also grew sharply, with as-a-service up 49 percent and traditional sourcing up 10 percent. Manufacturing, meanwhile, was off sharply from the prior 12-month period, as even a 43 percent increase in as-a-service could not offset a 49 percent drop in traditional sourcing. Public sector combined ACV reached US$3.3 billion in the trailing 12 months, a jump of 23 percent compared with the previous period. Much of this contract value was signed in Australia/New Zealand, which, along with the Americas and the U.K., is one of the most active regions for public sector sourcing. Globally, ACV for the combined commercial and public sector market stood at US$23.4 billion for this quarter. While this performance was up 15 percent from the fourth quarter of 2016, it fell short of the US$25.5 billion benchmark reached in the first quarter of 2016. Global as-a-service ACV increased by US$1.3 billion, or 38 percent, in the first quarter of 2017 compared with the same period last year. About the ISG Index™ About ISG Logo - http://mma.prnewswire.com/media/454165/ISG_Logo.jpg |