# AI Demand Drives Americas Tech Services Market to Record $27.5 Billion

- URL: https://stocks.freetheai.org/news/ai-demand-drives-americas-tech-services-market-to-record-27-5-billion-7491ba
- Published: 2026-10-13T13:02:00Z
- Category: technology; sentiment: bullish; impact: medium
- Symbols: [NASDAQ:III](https://stocks.freetheai.org/symbols/NASDAQ-III)
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Technology research firm Information Services Group, Inc. (NASDAQ:III) raised its full-year growth forecast for cloud services as technology services spending in the Americas reached a record $27.5 billion in third-quarter annual contract value, up 61% year-over-year. Growth was driven by an unprecedented 129% surge in cloud infrastructure services, which reached $18.1 billion due to heavy demand for artificial intelligence capabilities. Cloud-based software services also climbed 21% to $3.4 billion, bringing total as-a-service spending to $21.6 billion.

In contrast, traditional managed services spending fell 6% year-over-year to $6.0 billion as enterprise clients prioritized cloud infrastructure over traditional outsourcing. Within managed services, IT outsourcing dropped 7% to $4.8 billion, while business process outsourcing fell 6% to $931 million. Total managed services contract volume decreased 11% to 426 awards, and mega-deal contract value sank 64%. However, engineering research and development managed services grew 18% to $287 million.

Looking ahead, full-year 2026 growth projections for cloud-based services were doubled to 60%, up from a previous estimate of 30%. Within cloud spending, infrastructure services are projected to grow 80% for the full year, while software-as-a-service is expected to rise 12.5%. The full-year forecast for traditional managed services remains unchanged at 2.1% growth.

## Key points

- Americas technology services contract value rose 61% year-over-year to a record $27.5 billion in Q3.
- Demand for cloud infrastructure services jumped 129% to $18.1 billion, driven by AI workloads.
- Traditional managed services declined 6% year-over-year to $6.0 billion as deal volume dropped 11%.
- Full-year 2026 cloud growth forecasts were raised to 60%, with infrastructure expected to gain 80%.

## Questions and answers

### How much did Americas tech services spending grow in Q3?

Technology services spending in the Americas grew 61% year-over-year in Q3 to a record $27.5 billion in annual contract value.

### Why did cloud infrastructure spending surge in Q3?

Cloud infrastructure spending jumped 129% to $18.1 billion as enterprises and hyperscalers expanded data centers and compute capacity for AI models.

### What is the full-year 2026 forecast for cloud services growth?

Full-year 2026 growth for cloud-based services is projected at 60%, led by an 80% increase in infrastructure services and a 12.5% rise in software services.