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Globe and Mail
16-07-2025
- Business
- Globe and Mail
Asia Pacific's Demand for IT and Business Services Slows in Q2, ISG Index™ Shows
Asia Pacific's spending on IT and business services slowed in the second quarter as enterprises remained cautious in the face of uncertain macro conditions, according to the latest state-of-the-industry report from Information Services Group ( ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm. The Asia Pacific ISG Index™, which measures commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows second-quarter ACV for the combined market (both cloud-based XaaS and managed services) was down slightly (0.3 percent) versus the prior year, to US $4.7 billion. Sequentially, the market fell 12 percent compared with the first quarter. It was the first time the Asia Pacific market pulled back since the second quarter last year. Fueled by interest in AI, demand for cloud-based services remained robust, up 16 percent year on year, to US $3.9 billion, even as demand slowed 15 percent from the first quarter. Managed services, meanwhile, slumped 40 percent, to US $823 million, but rose 6 percent against the first quarter. Within the XaaS segment, infrastructure-as-a-service (IaaS) ACV advanced 17 percent, at US $3.4 billion, while software-as-a-service (SaaS) ACV grew 13 percent, to US $500 million. In managed services, IT outsourcing (ITO) ACV fell 46 percent, to US $539 billion, with even the largest and fastest-growing service area, application development and management (ADM), down more than 30 percent. Business process outsourcing (BPO) also had a weak quarter, down 34 percent, to US $133 million, with only customer engagement and facilities management services showing growth. Engineering, research and development (ER&D) services didn't fare much better, down 15 percent, to US $152 million. During the quarter, 69 managed services contracts were awarded, down 18 percent year on year. Among industries, the region's largest industry for sourcing—banking, financial services and insurance (BFSI)—was up 1.4 percent. Travel, transportation and leisure and retail both generated double-digit growth off smaller bases. All other sectors were down by double digits. Geographically, South Korea was the only market that grew, albeit off a small base. Australia-New Zealand was down 33 percent, India was down 16 percent and Japan was down 35 percent. 'Macroeconomic and geopolitical uncertainty is really taking a toll on the Asia Pacific market at the moment. The only bright spot right now is AI, which has companies investing in cloud services to take advantage of the massive computing power needed to run AI at scale,' said Michael Gale, partner and regional leader, ISG Asia Pacific. 'Given the quarter-over-quarter improvement we saw in managed services, we hope to see a turnaround in the overall market during the second half.' First-Half Results Asia Pacific's combined market ACV in the first half rose 4.3 percent versus the prior year, to US $10.1 billion. All the growth can be attributed to the XaaS segment, which rose 17 percent, to US $8.5 billion. Within XaaS, IaaS was up 17 percent, to US $7.4 billion, while SaaS rose 16 percent, to US $1.0 billion. Managed services, meanwhile, declined 34 percent, to US $1.6 billion. All its component pieces were down double digits, including ITO, down 31 percent, to US $1.1 billion; BPO, down 33 percent, to US $288 million, and ER&D down 51 percent, to US $175 million. The 126 managed services contracts awarded in the first half were down 16 percent from the prior year. Among industries, the largest sector for outsourcing, BFSI, was down 16 percent, while the second largest, manufacturing, was off 19 percent. Among geographic markets, only India managed growth in the first half, up 2.4 percent. 2025 Global Forecast For the full year, ISG is maintaining its forecast of 1.3 percent revenue growth for managed services, reflecting a stabilizing tariff environment but also continued weakness in discretionary spending. At the same time, ISG is raising its previous growth forecast for cloud-based XaaS by 300 basis points, to 21 percent, based on continuing strong demand for AI-driven transformation. About the ISG Index™ The ISG Index™ is recognized as the authoritative source for marketplace intelligence on the global technology and business services industry. For 91 consecutive quarters, it has detailed the latest industry data and trends for financial analysts, enterprise buyers, software and service providers, law firms, universities and the media. The 2Q25 Global ISG Index results were presented during a webcast on July 10. To view a replay of the webcast and download presentation slides, visit this webpage. About ISG ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
CNA
14-07-2025
- Business
- CNA
India's HCLTech beats first-quarter revenue view
BENGALURU :HCLTech, India's third-largest software services provider, reported better-than-expected quarterly revenue on Monday, aided by growth in its IT and business services segment as well as in its engineering, research and development segment. It posted an 8.16 per cent rise in consolidated revenue to 303.49 billion rupees ($3.53 billion) in the June quarter. Analysts, on average, had expected revenue of 302.92 billion rupees, as per data compiled by LSEG.
Gulf Business
14-07-2025
- Business
- Gulf Business
PIF unveils Tasama Business Services Company to boost Saudi business ecosystem
Image: Saudi Press Agency Saudi Arabia's Public Investment Fund (PIF) has launched Tasama Business Services Company, a new national entity aimed at strengthening the kingdom's integrated business services and solutions sector and driving economic growth across public and private sectors, the Saudi Press Agency (SPA) reported. The newly established New PIF Company Tasama Set to Propel Saudi Arabia's Business Services Growth. — SPAENG (@Spa_Eng) Tasama will cover all the following areas The company's service offerings will span accounting support, human resources, procurement services, digital tools, incubation programmes, and workspace solutions. Tasama is also expected to support international firms operating or establishing regional headquarters in the kingdom, aligning with Saudi Arabia's push to attract foreign investment. Tasama CEO Engineer Mohammed bin Nasser Al-Jasser said the company aims to position the business services sector as a strategic pillar of Saudi Arabia's economy, fostering innovation, supporting entrepreneurship, and cultivating local talent. 'Our goal is to transform the business services landscape, becoming a leading national partner in advancing the technology ecosystem and enabling operational efficiency,' Al-Jasser said. 'We are committed to developing Saudi capabilities and driving economic diversification in line with the PIF's long-term strategy.' The company plans to expand across Saudi Arabia's regions, offering its solutions to a wide base of local and international clients. Its launch marks another milestone in PIF's mission to bolster the kingdom's non-oil economy, promote private sector growth, and position Saudi Arabia as a regional business hub.
Zawya
14-07-2025
- Business
- Zawya
PIF launches Tasama to boost Saudi business services sector
RIYADH — The Public Investment Fund (PIF) announced the launch of Tasama Business Services Company, a fully owned subsidiary designed to strengthen Saudi Arabia's integrated business solutions ecosystem and support growth across both public and private sectors. Tasama is the result of a merger between BIAC, a former subsidiary of Saudi Technology Development and Investment Company (TAQNIA), and PIF's Shared Services Center. The new entity aims to serve as a national provider of comprehensive business services, streamlining operations and enabling efficiency. The company will offer a full suite of services, including accounting support, HR and procurement services, digital solutions, incubator operations, and workspace solutions. These services are tailored to empower startups and support global companies operating in Saudi Arabia. Tasama CEO Eng. Mohammed Al-Jasser said the company is committed to elevating the business services sector, positioning it as a strategic pillar of the national economy. He highlighted Tasami's role in fostering innovation, developing Saudi talent, and building on BIAC's legacy of success across the public and private sectors. Al-Jasser added that Tasama will be a driving force in shaping the future of business services in the Kingdom, contributing to the expansion of Saudi Arabia's tech ecosystem and enabling a dynamic business environment. As part of its national growth strategy, Tasama plans to expand its footprint across the Kingdom to become the leading provider of business services, aligning with PIF's broader objectives of economic diversification and private sector enablement under Vision 2030. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Arabian Business
14-07-2025
- Business
- Arabian Business
PIF launches Tasama to boost Saudi entrepreneurship and tech ecosystem
Saudi Arabia's Public Investment Fund (PIF) has officially launched Tasama Business Services Company, a national platform aimed at transforming the Kingdom's business services landscape and accelerating growth across both public and private sectors. The launch follows the merger of BIAC—a startup incubator and accelerator formerly owned by TAQNIA, another PIF portfolio company—with the PIF's Shared Services Centre, creating a new national champion for integrated business services. Tasama will offer a comprehensive suite of services for startups in Saudi Arabia, including: Accounting and financial support Human resources and procurement services Digital solutions and innovation platforms Startup incubation and acceleration Workspace and co-working solutions PIF launches Tasama in Saudi Arabia The company is designed to support local businesses in both their startup and growth phases while also enabling international companies headquartered in Saudi Arabia to operate more efficiently. Tasama CEO Mohammed bin Nasser Al-Jasser said the company seeks to elevate the business services sector as a strategic industry in the Kingdom and actively contribute to economic diversification by supporting vital sectors. He emphasized the company's commitment to fostering innovation, empowering national talent, and developing Saudi capabilities, building on the achievements of BIAC in the public and private sectors. He added that Tasama aims to play a pivotal role in developing the business services sector, becoming a key partner in shaping its future and promoting the growth of the technology ecosystem and business environment in the Kingdom. The launch aligns with the PIF's strategic ambitions to diversify Saudi Arabia's economy, strengthen its technology and business ecosystems, and enhance private sector participation. Tasama will also help attract and support foreign companies establishing their regional headquarters in the Kingdom—a key goal under the government's regional HQ programme.
