More than 720 managed services deals were inked globally in the first half of 2022 with $48bn in contract value.
While the total number of deals dropped compared to the same period in 2021, the average deal size increased by 20 percent, according to the IDC Services Contracts Database.
Moreover, the average deal size in terms of Total Contract Value (TCV) has almost doubled compared to H121.
The researcher’s data shows that around 94 percent of H122 deals were in the IT outsourcing market, while the remaining six percent were business outsourcing deals.
IDC said these contracts were primarily focused on digital transformation, cloud migration, and technology modernization. This is thanks to Channel Partner Insight.
This may seem like an odd data point – obviously, more deals than 720 were done. I was interested in both the deal size data – they’re getting a lot bigger. That’s the insight here – the relationships are expanding.
They’re also in those three key areas — digital transformation, cloud migration, and technology modernization. They aren’t just infrastructure. This should be what providers are thinking about.