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Information Services Group (III) investor relations material
Information Services Group Status Update summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Market overview and growth drivers
2025 saw robust growth in cloud, infrastructure, engineering, and AI-related demand, while traditional labor-centric services faced pressure.
The global combined market reached $34.3 billion in Q4 ACV, up 16% year-over-year, with full-year growth at 18% versus 2024.
As-a-service (cloud and SaaS) was the primary growth engine, expanding 29% globally, now representing about two-thirds of market activity.
Managed services grew 1.3% in 2025, with deal durations increasing and total contract value up, despite fewer mega-deals.
AI is now a dominant driver, accelerating hyperscaler growth and fueling investments in cloud infrastructure and data platforms.
Regional and segment performance
Americas led growth, achieving record managed services ACV and strong ITO activity, while EMEA stabilized with a strong Q4 and Asia Pacific faced declines.
Engineering services grew 35% year-over-year, with EMEA leading and large integrated providers capturing over half the market.
BPO showed Q4 stabilization but was down 14% for the year, with facilities management as the only growing functional segment.
SaaS ACV rose 16% in 2025, with AI-centric software and collaboration platforms as key growth areas.
IaaS/cloud infrastructure ACV surged 33% for the year, driven by AI workloads and hyperscaler investments.
Pricing, contracting, and transformation trends
Deal durations are extending to support long-term transformation and organizational change, especially for AI adoption.
New pricing models are emerging, including autonomy-level and agentic pricing, as procurement adapts to AI-driven productivity.
Providers are making more confident productivity commitments, with AI seen as enabling deeper, structural modernization compared to previous automation waves.
Value-based and outcome-based pricing models are gaining traction, though organizations are still transitioning from FTE-based thinking.
Next Information Services Group earnings date
Next Information Services Group earnings date
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