Information Services Group, Inc. · NASDAQ:III
Information Services — Conference Presentation (April 2025)
26 slides from Information Services's conference presentation, Apr 10, 2025
Slide 1: IT & Business Services Industry Update 1Q 2025
IT & Business Services Industry Update April 10, 2025 1Q 2025 HOSTED BY Rishi Jhunjhunwala Head of Technology Research IIFL Capital © 2025 Information Services Group, Inc. All Rights Reserved. Proprietary and Confidential. No part of this document may be reproduced in any form or by any electronic o
Slide 2: Market Level Set
Market Level Set 1Q25 Recap Sector Outlook • Combined Market grew 18% Y/Y even as decision • Tariffs have raised short-term uncertainty; will making slowed in some areas likely see a pullback in discretionary IT spend • Managed Services up 2% Y/Y on broad-based growth • Negative impact on applicatio
Slide 3: Global Broader Market
Global Broader Market ACV $B Quarterly Trends Combined Market ACV of $28.9B; 28.3 28.9 24.4 17.6 18.4 best-ever quarterly result 14.2 10.2 10.7 10.5 Managed Services remained above $10B in ACV for 10th consecutive 1Q 4Q 1Q 1Q 4Q 1Q 1Q 4Q 1Q 24 24 25 24 24 25 24 24 25 quarter Six mega-deals awarded,
Slide 4: Managed Services ITO Results
Managed Services ITO Results Quarterly Trends ACV $B 1Q24 1Q25 ITO ACV up 12%; highest growth acceleration since 4Q23 Stand-alone 4.9 12% ADM Six mega-deals awarded; 2x more than 7.8 1Q24 7.0 7.0 Smaller discretionary awards up 6% Y/Y ADM Bundled 0.4 12% w/Infra -58% EMEA and Americas contributed to
Slide 5: Managed Services Engineering Results
Managed Services Engineering Results Quarterly Trends ACV $B Engineering ACV by Region Engineering ACV of $1.15B; best-ever Asia quarterly result 1.1 EMEA Americas Fifth consecutive quarter of double- digit Y/Y growth 0.8 Americas and EMEA both up significantly Y/Y 0.6 42% Engineering ACV by Industr
Slide 6: Managed Services BPO Results
Managed Services BPO Results Quarterly Trends ACV $B On a trailing 12-month basis, BPO BPO Quarterly Growth BPO TTM Growth segment is down 5% On a Y/Y basis, BPO is down 39% 2.6 39% 8.8 Industry-specific BPO was down 2.4 Y/Y 7.9 7.5 nearly 50%, although the number of awards increased by 4% Q/Q 1.5 5
Slide 7: Managed Services Regional Results
Managed Services Regional Results ACV $B Quarterly Trends 5.3 5.7 5.3 4.4 Americas: ACV growth remains choppy; 3.9 3.8 pulled back Y/Y for third time in five 1.1 1.2 0.8 quarters. BFSI and Telco up Y/Y, but defensive industries weighed on results 1Q 4Q 1Q 1Q 4Q 1Q 1Q 4Q 1Q EMEA: ACV up 13% Y/Y with
Slide 8: Industry Verticals
Industry Verticals Consumer Travel, Y/Y Business Packaged Goods Financial Healthcare Telecom Transport Trends Services & Retail Energy Services & Pharma Manufacturing & Media Leisure Combined Market 35% 23% 27% 8% 12% 17% 18% 21% Managed Services -8% -7% 29% -2% -6% 2% 1% 20% As-a-Service 49% 34% 25
Slide 9: IaaS Results
IaaS Results Quarterly Trends IaaS ACV Growth Rates, 2Q23 – 1Q25 1Q25 ACV of $13.9B was the best Total IaaS Big 3 Hyperscalers quarterly result ever 80% 34% Y/Y gain represents a 710 basis point deceleration from 4Q24 60% Americas and EMEA IaaS both up 40% 35%+, yet both decelerated from 20% 4Q24 le
Slide 10: SaaS Results
SaaS Results Quarterly Trends SaaS ACV Growth Rates, 2Q23-1Q25 SaaS up 19% Y/Y led by growth in Total SaaS Top 10 SaaS Providers EMEA and Asia 30% Top 10 SaaS growth rate moved in tandem with the Broader Index; Y/Y 20% growth accelerating from 4Q24 10% App categories such as ITSM and Collaboration a
Slide 11: ISG Global Service & Technology Provider Standouts
Global Service & Technology Provider Standouts THE ISG 15 Our ISG Contract KnowledgeBase™ is used to determine The Big 15 placements based on the annual value of commercial contracts awarded in the past 12 months The Building 15 The Breakthrough 15 The Booming 15 1Q25 © 2025 Information Services Gro
Slide 12: Service & Technology Provider Standouts – Global
Service & Technology Provider Standouts – Global The ISG Contract KnowledgeBase™ is used to determine placements based on the annual value of commercial contracts awarded in the past 12 months. The Big 15 The Building 15 The Breakthrough 15 The Booming 15 Revenues > $10B Revenues $3B-$10B Revenues $
Slide 13: GCCs and IT Services
GCCs and IT Services Key Trends ISG Provider Lens™ Global Capability Center (GCC) Services GCCs and IT services providers co- existing in this space GCC Design & GCC Optimization & Services for GCCs focus on design Setup Enhancement and setup, as well as optimization and enhancement Nearly 60% of GC
Slide 14: GCCs and Talent
GCCs and Talent Key Trends Investments in AI expected to be a key productivity driver for GCCs Talent mix for enterprises with GCCs expected to change over next two years with more focus on AI, data science and engineering roles GCCs will be forced to compete with Managed Services providers in a hig
Slide 15: GCCs and AI
GCCs and AI Key Trends Over half of enterprises expect GCC productivity gains this year to come from leveraging AI However, AI adoption has been slow to leave the pilot phase Average timelines for having use-cases in production have slipped by 6 to 9 months Data quality and inability to demonstrate
Slide 16: Summary and Outlook
Summary and Outlook Summary Market Outlook Managed Services Sector Outlook • 1Q25 ACV up 2%, led by growth in EMEA while Americas remained • Heightened uncertainty from trade policy, geopolitical tensions, flat and evolving regulations is beginning to weigh on second-quarter • ITO posted solid broad
Slide 17: Thank you!
The 90 Quarterly th Thank you! © 2025 Information Services Group, Inc. All Rights Reserved.
Slide 18: Index Insider Weekly Briefing
Index Insider Weekly Briefing Subscribe to the ISG Index Insider to stay on top of what's important in the IT & Stanton Jones Alex Bakker business services industry. Delivered to your inbox every Friday from the ISG Market Lens Team. Michael Dornan Sunder Sarangan https://isg-one.com/research/isg-in
Slide 19: Appendix
Appendix © 2025 Information Services Group, Inc. All Rights Reserved.
Slide 20: Americas Broader Market Results
Americas Broader Market Results ACV $B Quarterly Trends Combined Market ACV surpassed 14.5 14.5 12.2 $14B for second consecutive quarter 8.8 9.2 5.3 5.7 6.9 5.3 Managed Services remains choppy; pulled back Y/Y for third time in five 1Q 4Q 1Q 1Q 4Q 1Q 1Q 4Q 1Q quarters 24 24 25 24 24 25 24 24 25 BFSI
Slide 21: Service & Technology Provider Standouts – Americas
Service & Technology Provider Standouts – Americas The ISG Contract KnowledgeBase™ is used to determine placements based on the annual value of commercial contracts awarded in the past 12 months. The Big 15 The Building 15 The Breakthrough 15 The Booming 15 Revenues > $10B Revenues $3B-$10B Revenues
Slide 22: EMEA Broader Market Results
EMEA Broader Market Results ACV $B Quarterly Trends Combined Market ACV of $9.1B, up 8.4 9.1 7.4 double-digit Y/Y for third 3.8 4.4 4.6 4.7 consecutive quarter 3.9 3.5 Managed Services ACV of $4.4B, up 1Q 4Q 1Q 1Q 4Q 1Q 1Q24 4Q 1Q 24 24 25 24 24 25 24 25 13% Y/Y Pullback in smaller discretionary dea
Slide 23: Service & Technology Provider Standouts – EMEA
Service & Technology Provider Standouts – EMEA The ISG Contract KnowledgeBase™ is used to determine placements based on the annual value of commercial contracts awarded in the past 12 months. The Big 15 The Building 15 The Breakthrough 15 The Booming 15 Revenues > $10B Revenues $3B-$10B Revenues $1B
Slide 24: Asia Pacific Broader Market Results
Asia Pacific Broader Market Results ACV $B Quarterly Trends 5.4 5.3 Combined Market ACV of $5.3B; up 4.8 4.5 3.8 4.2 Y/Y for fifth consecutive quarter 1.0 1.2 0.8 Managed Services ACV of $780M, slowest quarterly result in two years 1Q 4Q 1Q 1Q 4Q 1Q 1Q 4Q 1Q 24 24 25 24 24 25 24 24 25 Telco/Media an
Slide 25: Service & Technology Provider Standouts – Asia Pacific
Service & Technology Provider Standouts – Asia Pacific The ISG Contract KnowledgeBase™ is used to determine placements based on the annual value of commercial contracts awarded in the past 12 months. The Big 15 The Building 15 The Breakthrough 15 The Booming 15 Revenues > $10B Revenues $3B-$10B Reve
Slide 26: isg-one.com
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizati
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