This is according to the latest state-of-the-industry report, ISG Index from Information Services Group (ISG), a leading global technology research and advisory firm.

The report, which measures commercial outsourcing contracts with annual contract value (ACV) of US$5 million or more, found Asia Pacific’s combined market (managed services and cloud-based as-a-service) slowed to US$2.05 billion of ACV.

This is down by 4% from the prior quarter, but up 2% over a strong 2018 fourth quarter.

Despite a declining trend in the last two quarters, it was the fifth straight quarter the region has exceeded US$2 billion in combined market ACV.

Managed services slumped 41%, to US$413 million, in the fourth quarter, as most countries showed declines, with the exception of China, which saw continuing strong demand for applications and infrastructure services.

For last year’s results, Asia Pacific’s combined market delivered strong double-digit growth, with ACV of US$8.8 billion, up a resounding 20% over the prior year. It was the first time the region exceeded US$8 billion of annual ACV.

ISG is forecasting the global market for cloud-based services will grow 23.5% this year and the market for managed services will grow 3.2%.