sector turned in slightly more modest growth, with traditional sourcing advancing 11 percent and as-a-service rising 49 percent versus the prior period.
Globally, the combined market reached a record high of US$12.2 billion in the first quarter of 2018, driven by 40 percent growth in the as-a-service sector, which reached US$5.9 billion of ACV. The new quarterly high for as-a-service is far beyond the US$4 billion range in three of the last four quarters, and nearly double the typical ACV of just two years ago.
"Digital transformation is a very real and growing phenomenon," said Lisa Borden, partner and head of ISG Australia and New Zealand (ANZ). "Digital technology is lowering costs and changing business models for virtually all the world's leading enterprises, and we see no end in sight. Looking at how organizations in Australia and New Zealand are adopting new business models, how they have shifted toward a product-oriented mindset and what that means to the broader sourcing market all suggest optimism for continuing growth."
About the ISG Index(TM)
Now in its 62nd consecutive quarter, the ISG Index(TM) (http://isg-one.com/research/research-detail-page/isg-index ) provides a quarterly review of the latest sourcing industry data and trends for clients, service providers, analysts and the media. For more than 15 years, it has been the authoritative source for marketplace intelligence related to outsourcing transaction structures and terms, industry adoption, geographic prevalence and service provider performance. In 2016, the ISG Index(TM) was expanded to include coverage of the fast-growing as-as-service market, measuring the significant impact cloud-based services are having on digital business transformation. ISG also provides ongoing analysis of automation and other digital technologies in its quarterly ISG Index(TM) presentations. ---
About ISG
ISG (Information Services Group) (Nasdaq: III) (http://www.nasdaq.com/symbol/iii ) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including 75 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; technology strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 professionals operating in more than 20 countries-a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry's most comprehensive marketplace data. F
