Category Archives: Business

Ras Al-Khair Special Economic Zone Lures Investment with International Partnerships in Maritime Industry and Offshore Cluster

July 18,2024,Riyadh, Saudi Arabia : The Ras al-Khair Special Economic Zone (SEZ) leverages partnerships with major maritime players and has secured backing from the Saudi government to attract global investments.

The largest shipyard in the MENA region

The King Salman International Complex for Maritime Industries and Services aims to be both the largest shipyard in the MENA region and the most technologically advanced. The shipyard will focus on shipbuilding, repair, offshore rig fabrication, and repairing, utilizing modern technologies like AI, IoT, and renewable energy sources. Additionally, a fully integrated offshore cluster aims to localize the end-to-end offshore supply chain.

Four key entities have been established within the SEZ to meet the region’s growing demand for maritime applications:

International Maritime Industries (IMI), a joint venture of Aramco, Lamprell, Bahri, and Hyundai Heavy Industries (HHI).
Saudi Engines Manufacturing Company (MAKEEN), a joint venture of Aramco, HHI, and the Saudi Arabian Industrial Investments Company (Dussur).
McDermott Arabia Company Limited, fully owned by McDermott International.
Aramco-Baosteel steel plate plant, a joint venture of Aramco and Baoshan Iron & Steel Company Limited.

IMI has already secured offtake agreements totaling US$10 billion over 10 years with partners Aramco and Bahri, for the delivery of 20 rigs and 52 vessels, covering at least 75% of Bahri’s commercial vessel needs over the period.

Competitive incentives for international investors

Investors in Ras Al-Khair SEZ will play a crucial role in driving Saudi Arabia’s ambition to develop a state-of-the-art Maritime and Offshore Cluster, contributing to the localization of end-to-end supply chains and establishing a docking hub for regional ship repairs and maintenance.

The SEZ offers a range of competitive incentives for investors, including a 5% corporate income tax for up to 20 years, 0% customs duties deferral for goods inside the zone, 0% withholding tax for profit repatriation abroad, and 0% VAT for intra-SEZ goods exchanged within the zone and between zones. These incentives are designed to attract both local and international investors, enhancing the SEZ’s appeal as a business-friendly environment.

Ahmed M. Hassan, CEO of Ras Al-Khair City for Mining Industries, emphasized, “Ras Al-Khair SEZ is transforming into a key global hub for strategic investments with its rapid growth and unique position at the center of the Arabian Gulf. Local and foreign investors will not only gain access to the largest and most technically advanced shipyard but also the materials needed to build the maritime capabilities of the future.”

Connected hub to foster regional growth, create 80,000 jobs

The SEZ benefits from its strategic location next to Ras Al-Khair Port, the Kingdom’s newest industrial port, and is connected to the KSA North-East Rail link and King Fahd International Airport. This connectivity facilitates efficient movement of goods and personnel, further enhancing the SEZ’s attractiveness.

The development of the SEZ and King Salman International Complex for Maritime Industries and Services is integral to Saudi Arabia’s Vision 2030, aimed at diversifying the Kingdom’s economy. Saudi Arabia’s economic growth has been robust, with a cumulative 7.2% increase since Q4 2019, and unemployment rates dropping below 5%. The SEZ aims to reach a maritime industry target value of US$14 billion annually and create over 80,000 direct and indirect jobs.

“Projects like Ras al-Khair are spearheading the Kingdom’s drive to become a global investment destination by developing a modern, sustainable maritime and logistics powerhouse,” said Eng. Ahmed Hassan, (RC CEO of RCMI)

Max Life Pension Fund Management Hosts Retirement Roadmap 2025 in a Bid to Elevate India’s Retirement Preparedness

18th July 2024  New Delhi, Delhi, India  Max Life Pension Fund Management Limited (“Max Life PFM” / “Company”) has laid out its roadmap for FY 25, emphasizing on the importance of planning for retirement early and advocating the Government of India’s product National Pension System through a series of initiatives. In a bid to promote the importance of retirement planning, Max Life PFM organized a landmark event on April 27th, wherein industry leaders and experts convened to discuss critical themes shaping India’s retirement landscape.

At the event, notable figures such as Shri Ananta Gopal Das, CEO, NPS Trust and Executive Director of the Pension Fund Regulatory and Development Authority (PFRDA); Ranbheer Singh Dhariwal, Chief Executive Officer, Max Life Pension Fund Management along with celebrated actor Boman Irani shed light on the critical need for individuals to proactively prepare for their retirement years, emphasizing the role of initiatives like the NPS in securing financial stability during retirement.

Max Life’s India Retirement Index Study 3.0 reveals that nearly three out of five urban Indians are concerned about depleting savings within a decade of retirement. In response, Max Life Pension Fund Management aims to provide a comprehensive and educational framework for Indians to plan for retirement effectively. Discussions at the forum focused on educating vulnerable groups about the importance of long-term financial planning and enhancing the accessibility of retirement products amongst diverse demographics PAN India.

Shri Ananta Gopal Das, CEO, NPS Trust and Executive Director of the Pension Fund Regulatory and Development Authority (PFRDA) said, “Retirement planning is not just a personal endeavor but a larger imperative. By empowering individuals to take proactive measures, we aim to redefine retirement as a phase of opportunity and preparedness rather than uncertainty. Together, with collective efforts, we can pave the way for a financially secure and prosperous India.”

Ranbheer Singh Dhariwal, Chief Executive Officer, Max Life Pension Fund Management said, “In the coming years, India is likely to witness an overwhelming increase in population aged 60 and above, highlighting the immense need for effective retirement planning. Max Life Pension Fund Management is driven by a collective mission to empower individuals to realize their retirement dreams and aspirations. We are motivated by the philosophy of #HarGharPension and we envision a future where every Indian is financially independent by the time they approach retirement. For the coming year, our commitment extends to continue simplifying the NPS Experience for all stakeholders.”

Looking ahead, Max Life PFM outlined its agenda to drive retirement planning initiatives in the coming quarters. The company aims to enhance accessibility of retirement products through digital initiatives and deeper engagement across markets.

Dost Banke – The Indian Music Video That’s Making the World Cry

18th July 2024  New Delhi, Delhi, India  The musical masterpiece, “Dost Banke” has gotten an overwhelming response from the audience, moving viewers across the world to tears. This can be witnessed by the fact that the song has gotten over 11 million views and has inspired more than 100,000 reels within just a few days of its release.

The success of the song goes down to the relentless hard work of the talented artists behind its creation. Gurnazar is the maestro behind the soulful lyrics of the song and is also the lead actor in the music video. His performance is complimented perfectly by the super-talented Priyanka Chahar Chaudhary. With around 5 million fans and followers on Instagram, Priyanka is the female lead in the music video. The power-packed performances of the duo didn’t just make the audience emotional but also made the entire crew tear up during the filming of the final sequence. The iconic voice of Rahat Fateh Ali Khan, the legendary Sufi singer, touched the hearts of millions. As per the audience, no one else could have justified the emotions of the song the way he did.

The audiences are loving the emotional depth in the music video directed by Abhaynoor Singh, and are giving rave reviews about it online. The director is well-known for his brilliant understanding of the complexities of social and cultural nuances. People are relating their experiences of relationships and heartbreak with the video, as expressed in the YouTube comments. Many viewers are even asking for a sequel to the story as the narration is like a short film that keeps the viewers invested.

Director Abhaynoor Singh highlighted his vision while directing the song, “Through ’Dost Banke,’ I wanted to highlight how, knowingly and unknowingly, people hurt others for momentary and worldly pleasures. It was an attempt to touch on the lasting impression that such behaviours leave on an individual’s persona, leading to traumas that can be devastating sometimes, as in this music video. I wished to leave the audience with a moment of reflection to ponder over these deep themes. The video has touched the right chord, which is fulfilling as a director.”

Dost Banke questions multiple norms at the same time. It is a multifaceted story with a substance that has set a new paradigm in the music industry.

Radio City to Redefine Entertainment with their Launch on JioTV

18th July 2024  Mumbai, Maharashtra, India  Radio City, a trailblazer in vibrant music and engaging content, is thrilled to announce its debut on JioTV. This pioneering fusion marks a significant milestone as Radio City becomes the first-ever radio station in the country to introduce a 24×7 video channel under the banner of RC Studio.

This launch on JioTV not only extends the reach of Radio City but also provides advertisers with limitless opportunities to engage with a nationwide audience. Through this association, Radio City will be able to reach out to JioTV’s massive audience base across the country. The JioTV mobile app – which has over 1,000 channels in more than 16 languages and 12 genres from over 200 broadcasters is available to all Jio subscribers across the country.

Through this launch, Radio City will touch the nerves of the younger, digitally savvy generation, leveraging their attraction to screens to reignite their interest in radio. By embracing the new digital platform, Radio City will deliver phenomenal content that echoes with the Gen Z. RC Studio will also be available on connected TVs through JioTV+ which comes as a part of JioFiber and AirFiber.

This initiative will be pivotal in bridging the gap between different audience segments and expanding Radio City’s reach to a larger demographic, creating a more inclusive and vibrant entertainment approach. The launch of RC Studio propels Radio City into the digital era by enriching the entertainment experience for its audience with the JioTV app which is now also available on MyJio app and JioBharat phones.

Ashit Kukian, CEO of Radio City, expressed his excitement, “In this exciting juncture of innovation and expansion, I am thrilled to announce the launch of our pioneering channel, RC Studio, on JioTV and JioTV+. The launch marks a historic point in our journey, reflecting our brand’s evolution and commitment to ‘Radigitalization’. Our RC Studio’s tagline, ‘Mast Raho’, encapsulates our dedication to crafting a comprehensive digital experience that caters to our existing and new audiences. Radio City has always been a frontrunner when it comes to innovative concepts, and with this launch on JioTV, we are forging the future of entertainment by providing a platform that ignites excitement and engages viewers and brands alike in ways like never before!”

The amalgamation of Radio City’s timeless audio content with dynamic visuals on JioTV and JioTV+ signifies a paradigm shift in broadcasting, breaking new ground and redefining the essence of entertainment. Combining the power of video and audio in perfect harmony will allow them to engage audiences like never before.

Radio City’s RC Studio offers an all-encompassing entertainment experience. From refreshing music to exciting content, audio narratives, and exclusive interviews with film industry luminaries, the studio promises a diverse array of elaborate content.

Egis in India Leads the Charge for Environmental Sustainability with Aranaya

18th July 2024  Gurugram, Haryana, India  Egis, a leading global architecture, consulting, construction engineering and mobility service sectors company, continues to demonstrate its commitment to environmental stewardship through its flagship initiative, “Aranaya.” With a focus on combating climate change and fostering sustainability, Egis in India launched this initiative in 2022, aiming to transform designated areas into vibrant green spaces.

Under the guidance of the CSR Committee of Egis in India, and in collaboration with NGO partner “Hara Jeevan,” the “EgisCleanAndGreen” drive in Gurgaon has made significant strides toward promoting environmental conservation. Recognizing the urgent need for action, Egis chose to support this initiative, aligning with its core values as a responsible corporate citizen.

The initiative unfolded in three phases, each aimed at addressing different aspects of environmental conservation. In Phase I, volunteers from Egis India and Hara Jeevan NGO conducted a comprehensive cleanliness drive near NH-8, focusing on removing plastic waste, eliminating weeds, and collecting dried leaves for composting.

Phase II witnessed over 100 enthusiastic volunteers from Egis India and Hara Jeevan coming together for a massive plantation drive. Leading by example, Egis Senior Management actively participated in planting ayurvedic and medicinal plants in a specially designated zone within the green belt. To further enrich the ecosystem, eco-friendly measures such as eco fencing, artificial bird nests, and provision of water for birds were implemented, alongside the utilization of tree logs and other waste materials.

Looking ahead, Egis in India is committed to sustaining its environmental initiatives, including the “One Employee One Plant” campaign, which encourages every member of Egis to contribute to greening efforts.

Mr. Sandeep Gulati, MD, India and South Asia, Egis, expressed his appreciation for the enthusiastic participation and emphasized Egis’s unwavering dedication to environmental sustainability. He stated, “Through Project Clean and Green, Egis in India aims to create a lasting impact on the environment and inspire positive change in communities.” Egis in India remains steadfast in its commitment to supporting the government’s environmental goals and remains dedicated to shaping a greener, more sustainable future for all.

Over 7000 saplings and shrubs were planted in the last two years

Bargad, Peepal, Neem, Millettia, Jarul, Goolar, Champa – tree saplings

Raat ke Rani, Chandini, Hibiscus, Vajradanti, Chitrak, Phycus, Snake Plant, Jarul, Hamelia – Shrubs

Mr. Sandeep Gulati said, “At Egis Group, we are focused on extending our community engagement and CSR support for a better future. We propagate sustainable ways in all our business practices. Let us all pledge not only to plant trees but also nurture them. Our employees are fully committed and participate in the collective effort to build a healthy and sustainable environment, address climate change and protect the Earth for future generations. I would like to thank everyone associated with Aranaya & Aranya 2.0.”

Manisha Saini, Chief Executive Officer, Hara Jeevan, “We are happy to be part of this initiative and thank Egis for choosing us to become part of the #Egisclean&green drive.”

Our ambition: Become the benchmark company for smart, sustainable infrastructure, fight climate change and improve the quality of life for all people.

Introducing BEAUTY&YOU India 2024

July 18,2024,Mumbai, Maharashtra, India : The Estée Lauder Companies (NYSE: EL) (“ELC”) is pleased to announce the third edition of BEAUTY&YOU India. Created by ELC’s New Incubation Ventures (“NIV”) and launched in partnership with India’s preferred beauty and lifestyle retailer – NYKAA, BEAUTY&YOU India continues its mission to discover, spotlight, and propel the next generation of India-focused beauty brands. The program supports India-focused companies, entrepreneurs, innovators, and creators through a competitive application process that will be open to prospective applicants on July 16, 2024, through August 29, 2024, via www.beautyandyouawards.com. Winners will be announced on November 16, 2024, at a live event in Goa.

The 2024 program builds on the success of previous years with the theme of Supercharged Futures. The beauty opportunity in India continues to grow with more brands, increased innovation, significant investment dollars, and a consumer base looking for the best solutions. BEAUTY&YOU India 2024 seeks applicants with a supercharged vision for the future of Indian beauty and its impact on the broader beauty ecosystem. This encompasses companies with social initiatives that enhance the lives of their communities and the ecosystems in which they operate. It also includes founders who are developing new technologies, ingredients, or solutions that address existing challenges for Indian beauty consumers while driving innovation across Skin Care, Makeup, Hair Care and Fragrance categories.

An exciting addition to this year’s program is that winners will have access to the BEAUTY&YOU India Bootcamp, featuring one-on-one mentorship sessions with industry leaders Falguni Nayar, Founder & Chief Executive Officer, NYKAA; Sabyasachi Mukherjee, Founder, Sabyasachi; and Rohan Vaziralli, General Manager, ELCA Cosmetics Private Limited. This unique opportunity is designed to provide the winners with invaluable insights and mentorship from these experts and affirms the program’s commitment to fostering the growth and development of the next generation of Indian-focused beauty entrepreneurs.

From the first edition in 2022 to the second in 2023, the applicant pool doubled in size. This growth has significantly enhanced the visibility and opportunities for the winners, underscoring the program’s positive impact.

“India represents one of the most exciting global economies for beauty today. A growing consumer base, an exciting retail landscape, and one of the most powerful entertainment markets in the world continue to fuel unprecedented growth. The market is poised to continue to drive both national and global trends. We are excited to support the founders and creators in their journey,” said Shana Randhava, Senior Vice President, The Estée Lauder Companies New Incubation Ventures.

“The global recognition of India’s potential as both a powerful consumer market and entrepreneurial hub is more evident now than ever before. NYKAA is proud to be a part of nurturing this ecosystem,” said Anchit Nayar, Executive Director & CEO, NYKAA Beauty. “In its third edition, BEAUTY&YOU India is more than just a platform — it’s a gateway for Indian entrepreneurs to showcase their creativity and rigor on a global stage and we are excited to be part of their future.”

“Participating in BEAUTY&YOU India since its first edition has been an immensely rewarding experience, particularly in seeing its transformative impact on the Indian beauty industry. The program enhances the trajectory of emerging brands by providing a platform that fosters growth, innovation, and visibility,” said 2024 BEAUTY&YOU India judge Katrina Kaif, Actor and Co-Founder, Kay Beauty, “In my role as the co-founder of Kay Beauty, I have a deep appreciation for such platforms that support entrepreneurs in their journey. As we enter the third edition, I am as excited and committed as ever to discover and support brands that are shaping the future of beauty in India.”

2024 Prize Program

The following prizes are open to founders, companies, and creatives meeting specific application criteria available at www.beautyandyouawards.com/ application-criteria. The following awards will be presented across categories in Skin Care, Make Up, Hair Care, Personal Fragrance, and Home Fragrance:

IMAGINE: Pre-Launch Beauty Concepts
GROW: In-Market Beauty Concepts
CREATE: The Next Generation of Creative Talent (e.g., photographers, filmmakers, etc.) Submitting Work Around the Theme of ‘Supercharged Futures’

Among other resources, BEAUTY&YOU India 2024 will provide award recipients with financial support (a prize pool up to 4 Crore or $500k), distribution channel access, mentorship, and access to research and innovation resources.

The BEAUTY&YOU 2024 website and application portal go live on July 16, 2024, and will accept applications until August 29, 2024, 11:59 PM IST. Full program details are available at www.beautyandyouawards.com.

2024 Judges

Shana Randhava
Senior Vice President, New Incubation Ventures, The Estée Lauder Companies

Anchit Nayar
Executive Director & CEO, NYKAA Beauty

Katrina Kaif
Actor and Co-Founder, Kay Beauty

Gaurav Gupta
Couturier, Artist and Designer

Anaita Shroff Adajania
Stylist, Creative Director & Founder, Style Cell

Samrath Bedi
Executive Director, Forest Essentials

Diipa Büller-Khosla
Founder, indē wild

Sandhya Devanathan
Vice President & Head – India @ Meta

Rohan Vaziralli
General Manager, ELCA Cosmetics Private Limited

Jaffrey Zaman
Managing Director, Intercos India Private Limited

Gianandrea Ferrari
CEO, Intercos Europe, Middle East & India

Sumit Bhasin
Senior Vice President, Global Fragrance Innovation, Product Development & R&D, The Estée Lauder Companies

Dr. Jaishree Sharad
Celebrated Cosmetic Dermatologist, author and TEDx Speaker

Shruti Chandra,
Vice President, Invest India and Vice Chair, Women Empowerment, Europe India Council for Business and Industry (EICBI)

Rochelle Pinto
Head of Editorial Content, Vogue India

Sujata Assomull
Contributing Editor, Vogue Business

Deepica Mutyala
Founder and CEO, Live Tinted

Equity funds and tax efficiency: Strategies to optimize tax liabilities

18th July 2024  Pune, Maharashtra, India  Investing in equity funds can be a suitable way to grow your money over time. But did you know that the taxes you pay on your investments can eat into your returns? That’s where tax efficiency comes in. By using smart strategies to optimize your tax liabilities, you can keep more of your investment gains in your pocket. Let’s explore some simple yet effective strategies to optimize tax liabilities when investing in equity funds.

Understand tax implications: Before diving into equity funds, it’s crucial to understand the tax implications. Profits from equity investments are subject to capital gains tax. Short-term capital gains, from investments held for less than a year, are typically taxed at higher rates than long-term gains. Knowing these tax rates can help you plan your investment strategy accordingly.

Here are the types of equity mutual funds taxation:

Income Distribution cum Capital Withdrawal or IDCW

IDCW refers to the allocation of earnings from a mutual fund scheme, encompassing dividends from stocks and profits from selling underlying stocks in the scheme’s portfolio. The income received by investors under IDCW is added to their total taxable income and taxed based on the investor’s applicable income tax slab rate. Additionally, there exists a standard TDS rate of 10% on dividend income exceeding Rs. 5,000.

Capital gains tax:

This tax is levied when investors sell their mutual fund units at a profit. The tax rate varies depending on the mutual fund type and the duration of ownership:

For equity funds, with more than 65% of the fund’s total assets invested in shares of companies, short-term capital gains (for holdings less than 12 months) are taxed at a fixed rate of 15%, along with any applicable surcharge and cess, irrespective of the investor’s income tax bracket.

Long-term capital gains (for holdings of 12 months or more) up to Rs. 1 lakh annually are exempt from tax. Any gains exceeding this threshold incur a long-term capital gains (LTCG) tax of 10%, along with any applicable surcharge and cess, without the option of indexation.

Strategies for optimizing tax liabilities

Choose tax-efficient funds: Not all equity funds are created equal when it comes to taxes. Some funds are more tax-efficient than others. You can also consider investing in Equity Linked Savings Scheme (ELSS). These mutual funds come with a lock-in period and can help in saving tax.

Hold investments for the long term: Long-term investments are taxed at lower rates compared to short-term investments. If possible, aim to hold your equity fund investments for more than a year to qualify for long-term capital gains tax treatment. This strategy not only reduces your tax liabilities but also aligns with the principle of investing for the long haul. You can start an SIP investment to meet your long-term financial goals and reap tax benefits in the long run.

Stay informed about tax law changes: Tax laws can change, impacting the tax treatment of your investments. Stay informed about any updates or changes in tax regulations that may affect your investment strategy. Consulting with a tax professional can also provide valuable insights and help you navigate complex tax situations.

Monitor portfolio allocation: Asset allocation plays a crucial role in tax efficiency. By balancing your portfolio with tax-efficient and tax-inefficient investments, you can minimize the overall tax impact.

In conclusion, optimizing tax liabilities when investing in equity funds requires careful planning and strategic decision-making. By understanding the tax implications, choosing tax-efficient funds, utilizing tax-advantaged accounts, and employing strategies like tax-loss harvesting and holding investments for the long term, investors can minimize their tax burdens and keep more of their investment gains. Staying informed about tax law changes and monitoring portfolio allocation are also essential aspects of maintaining tax efficiency. By implementing these strategies, investors can enhance their after-tax returns and work towards achieving their financial goals.

Explore Diverse Home Financing Options on Bajaj Markets

18th July 2024  Pune, Maharashtra, India  A wide range of home loan options are available on Bajaj Markets that can help individuals purchase the property of their choice.

Aspiring homeowners can easily access an amount of up to Rs. 15 Crores at competitive interest rates starting from just 8.50% p.a. Furthermore, individuals can repay the loan over flexible tenure ranging up to 40 years.

Borrowers can compare offerings from leading home loan providers on Bajaj Markets. With an easy and seamless online application process, borrowers can apply for a home loan at their convenience, with complete transparency and no hidden fees.

Beyond home loans, a variety of secured and unsecured loan options are also available on Bajaj Markets. Individuals can also explore various other financial products such as credit cards, insurance policies, and investment options directly on the user-friendly Bajaj Markets app or website.

Rimini Street to Report Second Quarter 2024 Financial Results on July 31, 2024

July 18,2024,Las Vegas, United States : Rimini Street, Inc. (Nasdaq: RMNI), a global provider of end-to-end enterprise software support, products and services, the leading third-party support provider for Oracle and SAP software, and an AWS partner, today announced it will report earnings after market close on July 31, 2024. The company will host a conference call and webcast on that date to discuss the second quarter 2024 results and the third quarter 2024 outlook at 5:00 p.m. Eastern / 2:00 p.m. Pacific time.

A live webcast of the event will be available on Rimini Street’s Investor Relations site via the Rimini Street IR events link and directly via the webcast link. Dial-in participants can access the conference by dialing 1-800-836-8184.

A replay of the webcast will be available for one year following the event.

Asia Pacific IT, Business Services Market Boosted by Strong Demand for Managed Services, Q2 ISG Index Shows

July 18,2024,Sydney, Australia : Asia Pacific’s spending on IT and business services surged above US $5 billion for the first time in two years, led by a resurgence in managed services demand, according to the latest state-of-the-industry report from Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The Asia Pacific ISG Index™, which measures commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows second-quarter ACV for the combined market (both cloud-based XaaS and managed services) rose 8 percent versus the prior year, to just over US $5.0 billion, the first time in seven quarters it eclipsed the US $5 billion mark and the third straight quarter the region delivered year-on-year growth.

Growth in the second quarter was powered by a resurgent market for managed services, which saw its ACV climb 32 percent over the prior year, to US $1.4 billion, the region’s best quarter in 12 years. Versus the first quarter of 2024, ACV was up 34 percent sequentially. Both the year-over-year and quarter-over-quarter comparisons came against strong US $1 billion-plus quarters.

During the quarter, 81 managed services contracts were awarded, up 37 percent year on year and 23 percent quarter over quarter. Deal volume was boosted by 44 percent growth in smaller deals valued between US $5 million and US $20 million per year. The value of restructured contracts, meanwhile, reached a record US $548 million of ACV, up 163 percent versus the prior year.

Demand for cloud-based services grew 1 percent, to US $3.6 billion, but ACV was down 8 percent sequentially against the first quarter of 2024. It was the third straight quarter XaaS has grown, averaging 18 percent year-on-year growth over that span, coming off a streak of five straight down quarters averaging 20 percent declines.

“Asia Pacific’s rising demand for traditional IT and business services reflects a continuing focus on cost optimization in a still uncertain economy,” said Michael Gale, partner and regional leader, ISG Asia Pacific. “Cloud-based services, which have been through a brutal downturn, are beginning to rise again, as enterprises focus on the data modernization that will enable GenAI adoption at scale.”

Within managed services, IT outsourcing (ITO) ACV rose 8 percent, to just over US $1 billion, driven by strong demand for bundled infrastructure and application development and maintenance (ADM) services and data center services. Business process outsourcing (BPO), meanwhile, surged 237 percent year on year, to US $367 million, led by triple-digit growth in customer engagement, facilities management, HR and engineering, research and development (ER&D) services.

From a geographic perspective, demand for managed services was up markedly in South Korea, China and Japan, the latter two markets producing their best quarters ever, up triple digits. The region’s two largest markets, Australia/New Zealand (ANZ) and India, meanwhile, moved in opposite directions, with ANZ down 30 percent in the quarter and India up 4 percent.

By industry, manufacturing, telecommunication and energy all moved to the upside, while banking, financial services and insurance (BFSI) and travel and transportation pulled back during the quarter.

Within the XaaS segment, infrastructure-as-a-service (IaaS) ACV was flat, at US $3.2 billion, while software-as-a-service (SaaS) ACV rose 8 percent, to US $430 million.

First-Half Results

Asia Pacific’s combined market ACV rose 19 percent versus the prior year, to US $9.9 billion, a dramatic turnaround from the first half of 2023, when the market was down 20 percent versus the same period in 2022, when Asia Pacific demand reached its zenith.

Managed services produced its best first half ever, with ACV of nearly US $2.5 billion, up 26 percent year on year. ITO ACV was up nearly 5 percent, to US $1.7 billion, while BPO ACV surged 126 percent, to US $773 million.

Among industries, managed services ACV in BFSI was up 43.5 percent year to date, with most other verticals up sizably in the half, with the exception of manufacturing, which pulled back 17 percent.

On the cloud side, XaaS ACV rose 17 percent, to US $7.5 billion. IaaS climbed 18 percent, to US $6.6 billion, and SaaS advanced 13 percent, to US $878 million.

2024 Global Forecast

For the full year, ISG is forecasting 2 percent revenue growth for managed services, down 100 basis points from its April forecast, and 14 percent revenue growth for XaaS, down from its 15 percent growth forecast in April.

“Uncertainty persists in the IT and business services market, with no clear catalyst at the moment to push discretionary spending higher,” said Steve Hall, president and chief AI officer of ISG, and global leader of the ISG Index. “Activity in the important BFSI sector remains dampened, due to the higher-for-longer interest rate environment, impacting the overall growth of the market. Enterprises in general continue to focus on cost optimization, and AI growth, while strong, is likely masking underlying weakness in the IT and business services industry.”