Fourth quarter results by cloud-based as-a-service (XaaS) segment

[sumaiyakhatun26]

Annual results
The ACV combined market grew 14 percent for the full year to a record US$32.6 billion, surpassing the previous annual record of 8 percent in 2022.

Managed services had a record year, with ACV of US$16.6 billion, up 5.6 percent, although the full-year increase was driven by strong growth in the third quarter. ITO, at US$12.4 billion, rose 6 percent, while BPO, at US$4.1 billion, rose 4 percent. In 2024, 1,164 managed services contracts were awarded, up 11 percent from the previous year. Thirteen of these were mega deals, up from 12 the previous year, although the combined annual value of mega deals fell 12 percent.

New space ACV rose 10 percent to a record $10.7 billion. By sector, travel india rcs data and transportation, the ACV rose 84 percent year-on-year, driven by a big win in Germany. Energy, retail and manufacturing saw slight gains, while the region’s largest supply sector, banking, financial services and insurance (BFSI), fell 22 percent.

The XaaS market generated ACV of US$16.0 billion, up 23 percent, after declining 9 percent in 2022, surpassing the previous annual high of 11.5 percent in 2023. IaaS jumped 30 percent to US$11.6 billion, while SaaS grew 8 percent to US$4.4 billion. XaaS accounted for 49 percent of the combined market in 2024, up from 45 percent in 2023.