Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index™ Shows
Business Wire•13/10/2026•20:00 ET
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Key Highlights
- ➤Combined Asia Pacific tech-services ACV surged 80% to record US $10.0 billion
- ➤XaaS ACV soared 92% to record US $9.0 billion
- ➤IaaS ACV essentially doubled, rising 99% to US $8.3 billion
- ➤Managed-services ACV increased 16% to just over US $1.0 billion
- ➤ISG raised 2026 XaaS growth forecast to 60%, from 30% previously
Expert Statements
Michael Gale, Partner and regional leader, ISG Asia Pacific
“AI is rocket fuel for the Asia Pacific market”
Michael Gale, Partner and regional leader, ISG Asia Pacific
“We are seeing unprecedented demand for cloud infrastructure to support AI computing needs, as well as for software services, which are fast becoming the key means by which employees are using AI. Traditional managed services also is seeing strong growth as a lever to lower costs and free up funds for AI investment.”
Asia Pacific AI Demand Drives Record Growth, Spending on Tech Services in Q3, ISG Index™ Shows
Combined market up 80%, as XaaS soars 92% and managed services climbs 16%
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