Information Services Group(III)
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European Enterprises Accelerate Responsible AI Adoption
Businesswire· 2026-01-16 09:00
Core Insights - Europe's analytics and AI market is experiencing rapid growth driven by modern data platforms, unified governance, and adaptive systems reshaping AI strategies [1] Group 1 - The acceleration of the analytics and AI market in Europe is highlighted as a significant trend [1] - Modern data platforms are playing a crucial role in transforming AI strategies [1] - Unified governance is essential for the effective implementation of AI technologies [1] - Adaptive systems are contributing to the evolution of AI strategies in the market [1]
Information Services Group, Inc. (III) Discusses Global IT and Business Services Market Trends and Shifts in Enterprise Demand Transcript
Seeking Alpha· 2026-01-15 17:16
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Information Services Group (NasdaqGM:III) Update / briefing Transcript
2026-01-15 15:02
Summary of ISG Global Index Call - Q4 2025 Company and Industry Overview - The call was hosted by Information Services Group (ISG), focusing on the IT and business services industry, which influences $200 billion of technology spending annually [5][11] - The ISG Index measures the health and growth of the technology industry, including managed services and cloud-based software and infrastructure services [11] Key Insights and Arguments Market Performance - The Americas led market growth in 2025, crossing $23 billion in managed services ACV for the first time, driven by strong ITO activity and a rebound in BFSI [12] - EMEA saw a 20% increase in ACV for engineering services, with cloud demand accelerating and deal sizes expanding [13] - The global combined market reached $34.3 billion in ACV in Q4 2025, marking a 16% year-over-year increase and the fourth consecutive quarter above $30 billion [14] - The as-a-service market grew 29% globally in 2025, while managed services grew only 1.3% [14][15] Segment Performance - SaaS accounted for 66% of the total combined market, with significant growth in cloud, software, and consumption-based services [15] - Managed services faced constraints due to fewer mega-deals and pricing pressure, with a slight decline in Q4 2025 [15][16] - Engineering services were the fastest-growing segment, with a 35% increase in ACV year-over-year, driven by large integrated multinational providers [21] - BPO generated over $2 billion in ACV in Q4 2025, up 13% year-over-year, but faced annual declines [24][25] Regional Insights - The Americas generated $23.5 billion in managed services ACV in 2025, up 9% from 2024, while EMEA's managed services ACV totaled $16.7 billion, down 1.4% [28][30] - Asia Pacific struggled, with managed services ACV down 27% year-over-year, primarily due to a decline in the smallest deal category [31] Future Outlook - For 2026, managed services growth is forecasted at 2.1%, while as-a-service is expected to grow by 20% [54] - Enterprises are navigating macroeconomic uncertainties, but investments in AI and cloud infrastructure are expected to continue [54] - The demand for AI-driven outcomes and flexible commercial models will shape the future of the outsourcing market [55] Additional Important Insights - The engineering segment showed strong growth across various sectors, with EMEA leading in ER&D spend, up 86% for the year [22] - AI is now a dominant driver of growth, with hyperscaler investments significantly impacting the market [13][41] - The BPO market is in a reset mode, with uneven growth concentrated in specific functions and industries, particularly industry-specific BPO [26][84] - The call highlighted the importance of AI in transforming traditional outsourcing models, with a focus on hyper-personalization and domain-led transformation [84] This summary encapsulates the key points discussed during the ISG Global Index call, providing insights into market performance, segment growth, regional dynamics, and future outlooks in the IT and business services industry.
ISG to Study Providers of Private, Hybrid Cloud Services, Solutions
Businesswire· 2026-01-12 15:00
STAMFORD, Conn.--(BUSINESS WIRE)---- $III #AI--ISG has launched studies examining providers of private and hybrid cloud data center services and solutions for data-intensive and AI-led workloads. ...
ISG to Evaluate Cybersecurity Services, Solutions Providers
Businesswire· 2026-01-09 15:00
Core Insights - Information Services Group (ISG) has initiated a research study to evaluate cybersecurity service providers, focusing on helping enterprises protect sensitive data and enhance cyber resilience [1][2]. Industry Overview - The cybersecurity market is undergoing a reorganization into distinct capability domains, driven by expanding regulatory demands and the need for enterprises to achieve cyber resilience through strategic and technical execution [2][4]. - Enterprises across various industries are facing increasing pressure to secure complex IT architectures and respond to AI-enabled attacks, leading to a demand for strategic cybersecurity services aligned with governance and risk management [4][5]. Research Study Details - The study will culminate in a series of ISG Provider Lens reports titled "Cybersecurity — Services and Solutions," set to be published in July 2026, covering various cybersecurity service categories [2][3]. - The research will include surveys distributed to over 350 cybersecurity providers, resulting in seven quadrants that represent the types of cybersecurity services enterprises are purchasing [5]. Quadrants of Cybersecurity Services - **Strategic Security Services (SSS)**: Focuses on consulting-led services for strategy, governance, and risk management [5]. - **Technical Security Services (TSS)**: Involves the design and implementation of IT and OT security technologies [5]. - **Next-gen SOC/MDR Services**: Covers continuous threat monitoring and response services [5]. - **Risk-based Vulnerability Management**: Evaluates providers on their ability to conduct continuous vulnerability assessments [5]. - **Post-quantum Encryption Consulting**: Assesses providers helping enterprises transition to mitigate quantum computing risks [5]. - **Data Leakage/Loss Prevention (DLP) and Data Security**: Involves ISVs developing solutions for sensitive data protection [5]. - **Extended Detection and Response (XDR)**: Evaluates ISVs with platforms for detecting and responding to sophisticated threats [6]. Geographic Focus - The reports will analyze the global cybersecurity market, including products and services available in regions such as the U.S., U.K., Australia, Brazil, France, Germany, and Switzerland [6]. Additional Information - The study will feature expanded customer experience data, measuring actual enterprise experiences with specific provider services [7]. - ISG is recognized for its empirical research and market analysis, aiding enterprises in selecting appropriate sourcing partners [8].
European Firms Seek Sovereign Clouds for Compliance, Resilience
Businesswire· 2026-01-09 09:00
Group 1 - European firms are increasingly adopting sovereign clouds to comply with stricter regulations [1] - The shift towards sovereign clouds is driven by geopolitical risks and the need for enhanced data transparency [1] - ISG highlights that these trends reflect a broader industry movement towards localized data management solutions [1]
AI Boosts Analytics to Empower Enterprises, ISG Says
Businesswire· 2025-12-19 15:00
STAMFORD, Conn.--(BUSINESS WIRE)---- $III #AI--Analytics software is being transformed into an AI-powered asset that is essential to business strategies in all industries, ISG says. ...
ISG to Study Digital Business Innovation Service Providers
Businesswire· 2025-12-18 16:00
STAMFORD, Conn.--(BUSINESS WIRE)---- $III #AI--ISG has launched a research study examining providers that enable organizations to utilize emerging technologies to modernize business processes. ...
Unified Services Enable Insurance Innovation
Businesswire· 2025-12-17 16:00
Core Insights - Insurance enterprises are increasingly integrating AI into their operations to enhance agility, personalization, and operational excellence amid various business challenges [1][2] Industry Trends - Insurers are reassessing their operating structures due to inflation, climate-related risks, cyber threats, and the demands of digital-first consumers, leading to a shift towards AI and intelligent architectures [2][3] - The transformation of insurance operations is influencing collaboration with IT outsourcing (ITO) and business process outsourcing (BPO) providers [2] Technological Advancements - Modular AI systems are being adopted to automate functions such as triage, document processing, and fraud detection, allowing for straight-through processing of routine tasks [3] - Cloud-native platforms are replacing traditional core systems, enabling composable architectures that facilitate the addition of new capabilities with minimal disruption [4] - API-first frameworks are being utilized to integrate advanced analytics and real-time data sources into workflows for underwriting and claims processing, reducing technology costs and increasing agility [4] Customer Engagement Strategies - Insurers are expanding into embedded distribution channels, collaborating with retail, fintech, and health platforms to introduce products at the point of need, leveraging data from IoT devices and digital touchpoints [5] - In life and retirement insurance, hybrid products are being introduced to align with policyholders' experiences and long-term goals [5] Operational Efficiency - The use of predictive analytics in underwriting and intelligent automation in compliance and audit functions is increasing, reshaping operating models for speed, accuracy, and flexibility [6] Provider Evaluation - The report evaluates 48 providers across three quadrants: Life and Retirement (L&R) Insurance Services Specialists, Property and Casualty (P&C) Insurance Services Specialists, and Insurance ITO Services Specialists [8] - EXL, Sutherland, and WNS are recognized as Leaders in two quadrants each, while Xceedance is named a Rising Star in two quadrants [9] Customer Experience Recognition - Sutherland is named the global ISG CX Star Performer for 2025 among Insurance Industry Specialists providers, achieving the highest customer satisfaction scores in ISG's Voice of the Customer survey [10]
Tata and Infosys to bear brunt of Donald Trump’s $100,000 H-1B worker fee
MINT· 2025-12-17 08:19
Core Points - The Trump administration's $100,000 fee for new H-1B workers from outside the US is expected to significantly impact the IT outsourcing and staffing industries, which have been targets for both political parties [1] - Multinational staffing firms, such as Tata Consultancy Services, Infosys, and Cognizant, will be disproportionately affected, with nearly 90% of new H-1B hires at these companies approved at US consulates [2] - The fee could lead to a steep decline in visa demand and an increase in the placement of workers overseas, as companies adjust their hiring strategies in response [4][10] Industry Impact - The fee will impose substantial costs on major IT firms, with Infosys facing over $1 billion in visa charges for more than 10,400 workers, Tata for 6,500 workers, and Cognizant for over 5,600 workers [3] - The IT consulting industry has already reduced new H-1B applications since 2024, and the new fee is likely to accelerate the trend of offshoring jobs [10] - Companies are expected to increase investments in countries like India, which is a primary source of H-1B workers, to access talent more cost-effectively [10] Hiring Strategies - Many employers are proactively adjusting their hiring plans in anticipation of the fee, with some planning to opt out of registering workers who would require visa processing at consulates [14] - The upcoming visa lottery in April will serve as an early indicator of how the fee and proposed lottery changes will affect the skill and wage levels of applicants [13] - The combination of the $100,000 fee and potential lottery reforms could reduce entries in the next lottery by 30% to 50%, reshaping market behavior regarding H-1B applications [15]