Demand for Tech Services in Europe Continues to Surge, Led by AI-Driven Infrastructure Spending in Q3: ISG Index™
ISG reported Q3 EMEA combined tech-services ACV of US $14.9 billion, up 56% year over year — its fastest growth in eight years and the fourth straight quarter above 20% growth. AI-driven infrastructure spending was the standout: IaaS ACV more than doubled (+106%) to a record $9.1 billion, and XaaS grew 85% to $10.6 billion, while managed services rose a more modest 12% to $4.3 billion.
Key figures
- Guidance
- FY2026: managed services growth 2.1% maintained; XaaS growth raised to 60% from 30%; IaaS +80%, SaaS +12.5%
- Q3 iaas acv
- $9.1 billion
- Q3 iaas yoy
- 106%
- Q3 saas acv
- $1.5 billion
- Q3 saas yoy
- 17%
- Q3 xaas acv
- $10.6 billion
- Q3 xaas yoy
- 85%
- Mega deals q3
- 6
- Q3 combined acv
- $14.9 billion
- Ytd combined acv
- $39.8 billion
- Q3 combined acv yoy
- 56%
- Ytd combined acv yoy
- 43%
- Q3 managed services acv
- $4.3 billion
- Q3 managed services yoy
- 12%
- Managed services contracts q3
- 241
AI analysis
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