Cloud services to see an increase as enterprises are focusing on digital transformation

A recent study by ISG revealed that enterprises have spent a record of $21.8bn on IT and IT-enabled business services in the third quarter of 2021 in order to focus on digital transformations.

Indeed, it was found out that cloud-as-a-service contracts were worth a total of $13.4bn during the quarter as well as a 40% increase was reported in the total value of more traditional IT outsourcing at $8.4bn. IT outsourcing services are growing significantly and don’t show any sign of stopping, as enterprises are accelerating their digital transformation strategies, modernizing their legacy environment, and moving to the cloud.

Moreover, it was reported that almost $60bn has been spend on IT services this year and that Europe, the Middle East, and Africa spent $6.5bn so far.  Hence, there was an increase in cloud-based as-a-service contracts, as well as infrastructure-as-a-service (IaaS) contracts, and software-as-a-service (SaaS).