Business
AI-Driven Demand for Cloud Services Propels Americas Tech Market to New High in Q4, ISG Index™ Finds
STAMFORD, Conn., January 20, 2026--AI-driven demand for cloud services propelled the Americas technology services and software market to a record high in the fourth quarter: ISG Index.
About this update from Information Services Group, Inc.
[{"type":"image","alt":"","displaySize":"","headline":null,"caption":"","credit":null,"className":"","disableSlideshowImg":false,"size":{"original":{"width":480,"height":330,"url":"https://media.zenfs.com/en/business-wire.com/fe1151371df45794f883273b823431f6"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/ULqDwzQUoi5JPWjn6JZgpg--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY2MDtjZj13ZWJw/https://media.zenfs.com/en/business-wire.com/fe1151371df45794f883273b823431f6","width":480,"height":330}},"lazy":false},{"type":"text","content":"Combined market up 21%, as AI drives record demand for cloud services","length":69,"tagName":"p","attribs":{}},{"type":"text","content":"ISG forecasts 2.1% managed services growth, 20% XaaS growth globally for 2026","length":77,"tagName":"p","attribs":{}},{"type":"text","content":"STAMFORD, Conn., January 20, 2026--(BUSINESS WIRE)--AI-driven demand for cloud services propelled the Americas technology services and software market to a record high in the fourth quarter, the latest state-of-the-industry report from Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm, finds.","length":350,"tagName":"p"},{"type":"text","content":"The Americas ISG Index™, which measures commercial outsourcing contracts with annual contract value (ACV) of $5 million or more, shows fourth-quarter ACV for the combined market—including both managed services and cloud-based as-a-service (XaaS)—climbed 21 percent, to a record $17.9 billion. It was the fifth straight quarter growth has topped 20 percent versus the prior year. The growth rate of the latest quarter, however, was the weakest over that span, which has averaged 24.5 percent a quarter. Versus the third quarter, combined ACV was up 4 percent sequentially.","length":571,"tagName":"p"},{"type":"text","content":""The Americas led the industry’s global growth in 2025, fueled by the region’s accelerating investment in AI-related services," said Todd Lavieri, vice chairman and president of ISG Americas and Asia Pacific. "In addition to continuing double-digit XaaS growth, the region crossed $23 billion in managed services ACV for the first time, supported by strong ITO activity, a rebound in BFSI, and continued momentum in infrastructure and bundled work. While the fourth quarter softened a bit, full-year performance confirms that the Amer...