IDC: Worldwide Services Contracts Reached $48 Billion in 1H 2022 with Strong Growth in Average Deal Size
More than 720 managed services deals were signed worldwide in the first half of 2022 (1H22) with $48 billion in contract value, according to the IDC Services Contract Database. While the total number of deals declined compared to the same period in 2021, the average deal size increased by 20%. Moreover, the average deal size in terms of Total Contract Value (TCV) has almost doubled when compared to 1H21.
“The impact of COVID-19 has accelerated the adoption of digital technologies, specifically focused on providing a digital workplace, to ensure the continuation of business and minimize disruptions while improving flexibility and enhancing productivity,” said Supriya Kamath, senior research manager, Global Services and Market Trends at IDC. “The push to become a digital-first organization has created opportunities for managed service providers with the expertise and resources to facilitate these efforts.”
About 94% of the 1H22 deals were in the IT Outsourcing market, while the remaining 6% were Business Outsourcing deals. The IT Outsourcing contracts were largely focused on digital transformation, cloud migration, and technology modernization. 1H22 saw a 40% decline in business process outsourcing (BPO) deal signings with an almost 50% decline in total contract value compared to 1H21. This trend is due to increased adoption of automation and AI-enabled technologies that are fast replacing traditional BPO engagements. This has affected large BPO deal signing as well, with 1H22 recording just one deal above the US$500 million threshold compared to two deals during this time the previous year. Nearly 58% of the deals were signed in the United States. From an industry perspective, public sector deals contributed about 60% of the TCV for 1H22. This is nearly 10% higher than 1H21.
“With the imminent economic slowdown that is expected in various sectors and regions, the overall number of deal signings in 2022 could be affected, although not severely as IT spending, especially towards digital services, has become an integral part of most companies’ growth and stability plans,” added Kamath.
The IDC Services Contracts Database is updated in real time with the most recently available services contract signings for nine regions and 53 countries. Contract details include size and run rate in US dollars, the buyers’ industry, geography, and size, the solution and technology, and the primary, secondary, and foundation market and submarket, according to IDC’s taxonomy.
The data underscore the vast services opportunity available to today’s channel partner.
Deep Instinct Launches MSSP Program Targeting Ransomware
Deep Instinct, a New York-based cybersecurity company, has announced the formal launch of its Stratosphere Managed Security Service Providers (MSSP) program. Deep Instinct provides a secure, multi-tenancy security platform that can effortlessly support a multitude of clients on a single solution.
The product takes a prevention-first approach to stopping ransomware and other malware using a cybersecurity framework designed to predict and prevent known, unknown, and zero-day threats in less than 20 milliseconds. The company claims a >99% zero-day accuracy and a <0.1% false positive rate.
Benefits include reduced costs in help desk calls, time spent troubleshooting, and re-imaging infected systems; multi-tenancy, single pane of glass management; license options based on desired features and billing cycles; access to an assigned technical expert; and access to MDF and a leads program.
“SMBs cannot keep up with the speed, volume, and sophistication of today’s threats while balancing the needs of the business,” said Brian Feeney, Vice President, Global Channels & Alliances at Deep Instinct. “Relying on humans as a line of defense will never provide the required protection nor peace of mind that organizations require in their battle against unknown and zero-day threats.”
The new partner program is intended to enable the MSSP community to deliver end-to-end prevention-first cybersecurity to protect customers from unknown and zero-day threats.
HP Unveils New Partner Benefits
HP has unveiled a number of new partner benefits aimed at driving greater partner collaboration, training opportunities and community engagement. The company also introduced a new partner training and engagement platform.
HP has expanded its customer-level insights available through the use of advanced analytics, resulting in customer-ready, targeted opportunities for partners to immediately act upon. New automated tools are designed to integrate directly with partner sales systems, thus simplifying the way data is collected and delivered.
“Over the past year alone, our partners helped drive more than $6 billion dollars in revenue growth,” said Kobi Elbaz, General Manager of HP’s Global Channel Organization. “Today’s news reflects our continued commitment to the channel and ongoing investment in ensuring we deliver the insights, training, connection and engagement our partners need to better serve customers and drive growth.”
HP has also developed a new platform offering enhanced training, community engagement and rewards. Highlights include a one-stop shop for soft skills, product, and solutions training; a centralized platform to connect 1:1 or participate in community discussions; and rewards and recognition opportunities, including promotions and contests.
Marketed as “HP Curiocity”, the initiative will roll out via a phased approach starting later this year, providing partner sales representatives with access to this unique, collaborative community.
Collaboration, training, engagement, and sustainability are at the center the program enhancements, each of which is designed to create a partner sales force that can be more targeted and effective in winning business.