In Q4 of FY 2019, global sourcing slowed down to $13.9 billion, a decline from the record $14.2 billion in Q3. Despite the downturn, the as-a-service market experienced growth, with notable increases in IaaS and SaaS sectors. Looking ahead, cloud-based services are projected to grow by 23.5% in 2020.

1. Global Sourcing Slows
in Q4 After Record Q3
4Q
FY
2019
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Global Market – Full Year
Global Market – 4Q
Combined market of $13.9B 7%
but down from record 3Q of $14.2B
As-a-Service market $7.0B 14%
IaaS $4.8B 8%, SaaS $2.2B* 31%
Managed Services at $6.9B 0.1%
ITO $5.0B 1%, BPO $1.9B 2%
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Managed Services
$3.0B 18%
As-a-Service
$3.7B 14%
Combined Market
$6.7B 3%
4Q19FY19
Managed Services
$13.0B 5%
As-a-Service
$14.9B*
23%
Combined Market
$27.9B*
8%
Managed Services
$3.5B 39%
As-a-Service
$1.7B 5%
Combined Market
$5.2B*
25%
4Q19
Managed Services
$11.9B 8%
As-a-Service
$7.1B*
13%
Combined Market
$19.0B*
10%
FY19
Managed Services
$414M 41%
As-a-Service
$1.6B*
26%
Combined Market
$2.0B 2%
4Q19
Managed Services
$2.8B 10%
As-a-Service
$6.0B*
25%
Combined Market
$8.8B*
20%
FY19
Americas
EMEA
Global Forecast: 2020
Cloud-based services to grow 23.5%
Managed Services to grow 3.2%
Asia Pacific
Regional Markets
Financial Services $11.4B* 7%
Business Services $9.6B* 14%
Manufacturing $8.1B* 8%
Retail & CPG $6.6B* 4%
Top Industries (Full Year)
Commercial sourcing market at $55.7B* 10%
As-a-Service at $28.0B* 21%
IaaS $20.5B* 23%, SaaS $7.5B* 15%
Managed Services at $27.7B* 2%
ITO $20.9B 1%, BPO $6.8B 9%
Number of contract awards: ITO (1,279), BPO (492)
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* New Annual Record
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