Demand for Tech Services in Europe Continues to Surge, Led by AI-Driven Infrastructure Spending in Q3: ISG Index™
Business Wire•12/10/2026•04:00 ET
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Key Highlights
- ➤Combined EMEA technology services ACV surged 56% to US $14.9 billion
- ➤XaaS ACV jumped 85% to record US $10.6 billion
- ➤IaaS spending more than doubled, rising 106% to US $9.1 billion
- ➤Managed services ACV grew 12% to US $4.3 billion
- ➤ISG raised 2026 XaaS growth forecast to 60%, from 30%
Expert Statements
Anthony Drake, President, ISG EMEA
“The European market is absolutely roaring right now.”
Anthony Drake, President, ISG EMEA
“After surpassing US $10 billion for the first time in last year’s fourth quarter, demand continues to push higher, with more than US $5 billion of incremental spend added from a year ago—and US $2 billion added just since last quarter. We’re seeing double-digit growth in managed services, led by business process outsourcing, as enterprises continue to emphasize efficiency and cost savings, but the real story is the meteoric rise in infrastructure spending to support accelerating AI adoption. The region is on a roll.”
Demand for Tech Services in Europe Continues to Surge, Led by AI-Driven Infrastructure Spending in Q3: ISG Index™
Combined market up 56%, as infrastructure spend more than doubles
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