Information Services Group, Inc. · NASDAQ:III
Information Services — Conference Presentation (October 2025)
32 slides from Information Services's conference presentation, Oct 9, 2025
Slide 1: Technology Industry Update: Services & Software 3Q 2025
Technology Industry Update: Services & Software October 9, 2025 HOSTED BY: 3Q 2025 Sumeet Jain Investment Analyst CLSA © 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 or mechanical
Slide 2: Market Level Set
Market Level Set Cloud and software-as-a-service demand remain strong. Managed services growth continues to be sluggish. Large-deal activity remains strong; small deals are rebounding. H-1B policy changes are adding cost and complexity to the industry. AI adoption is accelerating – and disrupting le
Slide 3: Global Broader Market
Global Broader Market ACV $B 3Q25 Results 11.2 10.8 10.5 11.0 21.6 32.6 10.2 10.4 19.6 19.5 Combined market surpassed $32B 25.5 25.9 27.6 30.4 30.0 15.2 15.5 16.5 for first time Managed services declined 2% Y/Y; first decline in six quarters 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 24 2
Slide 4: Implications of H-1B Changes
Implications of H-1B Changes The $100,000 H-1B fee sets a cost floor that erodes the visa labor advantage as firms must compete to retain transferable workers. The fee favors higher-wage applicants, making visas more reliable for senior, proven roles and less for speculative or lower-level positions
Slide 5: Managed Services ITO Results
Managed Services ITO Results ACV $B 3Q25 Results 2024 YTD 2025 YTD ACV down 2% Y/Y; growth declined for 2025 YTD Up 5% second consecutive quarter after two Americas 14.2 25% years of solid gains 8.5 8.4 8.4 7.8 7.8 7.0 8.8 2025 YTD Results EMEA 11% ACV up 5%; Number of awards up 4% 19 mega-deals awa
Slide 6: Managed Services Engineering Results
Managed Services Engineering Results ACV $B Engineering ACV 3Q25 Results by Engineering Type ACV up 59% Y/Y; number of awards up 46% Y/Y 2025 YTD up 36% 11% Fourth consecutive quarter of Y/Y ACV gains 1.0 12% 0.8 45% 0.8 2025 YTD Results 0.8 13% 0.6 ACV up 36%; Number of awards up 8% 19% 0.5 Large M
Slide 7: Managed Services BPO Results
Managed Services BPO Results 3Q25 Results ACV $B ACV down 16% Y/Y Top 50 BPO Provider 9 of the past 11 quarters have been Annual Revenue Growth down Y/Y 2.4 2025 YTD Down 22% 2.2 2025 YTD Results ACV down 22% YTD 1.8 1.8 1.7 1.5 Growth of Broad-based weakness across 3% or more Less than functional a
Slide 8: What’s Happening with BPO
What’s Happening with BPO Marked shift toward technology-led solutions, including data, AI and engineering services, blurring the lines between BPO and IT services. Significant shift toward hiring for specialized skills such as AI, data science and platform engineering. AI is not only enabling new e
Slide 9: Recent Price Performance in Managed Services Pricing
Recent Price Performance Pricing 1 in Managed Services Cumulative Two-Year Price Performance of Price reductions at the end of two IT and AMS Managed Services years for resource units (RU) Infra Network Workplace Service Desk Security AMS 0% across ITO are dropping -5% significantly. -10% -15% Due t
Slide 10: What’s Next? Autonomy-Level Pricing
What’s Next? Autonomy-Level Pricing The most promising solution for today’s transaction-based services is autonomy-level pricing (ALP). ALP doesn’t discard the resource units (RU) but augments it by tagging each unit with the autonomy level used to deliver it. Autonomy Levels Defined Why ALP Works 1
Slide 11: State of Enterprise AI Adoption
DOWNLOAD THE REPORT State of Enterprise AI Adoption 11 | 3Q25 © 2025 Information Services Group, Inc. All Rights Reserved.
Slide 12: Managed Services Regional Results
Managed Services Regional Results ACV $B Americas 5.1 1.4 6.4 3Q: Best quarter ever, up 22% Y/Y 5.3 5.3 5.6 5.9 3.9 4.1 4.4 3.8 3.8 1.0 0.9 4.9 0.9 YTD: ACV up 15%; BFSI sector up 30% 0.8 0.8 with $1.3B of additional ACV EMEA 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 3Q: ACV down 25% Y/Y
Slide 13: Americas Large- and Small-Deal Activity Has Been Strong YTD
Americas Large- and Small-Deal Activity Has Been Strong YTD 2024 YTD 2025 YTD Number of Small Awards Mega Award ACV ($B) 673 $1.8 58% Americas 15% Americas 374 EMEA $1.2 40% EMEA 26% Small Award = ACV $5M - $9M Mega Award = ACV > $100M 13 | 3Q25 © 2025 Information Services Group, Inc. All Rights Res
Slide 14: Managed Services Selected Industry Results
Managed Services Selected Industry Results ACV $B BFSI $1.0 $1.0 3Q: ACV up 17% 3.1 3.1 2.7 2.9 1.5 $0.8 $0.9 2.5 2.5 1.2 $0.7 $0.7 YTD: ACV up 8%; strength in Americas, 0.9 1.1 1.1 0.9 weakness in EMEA 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q Energy 24 24 24 25 25 25 24 24 24 25 25 25
Slide 15: SaaS Results
SaaS Results 3Q25 Results ACV $B 2024 YTD 2025 YTD ACV up 18% Y/Y Sixth consecutive quarter of Y/Y 2025 YTD up 16% growth averaging 12% 4.9 4.8 Americas 8.6 13% 4.7 4.1 4.2 4.1 2025 YTD Results ACV up 16% YTD EMEA 4.1 22% Growth across all three regions Top 10 SaaS providers outperformed the Broader
Slide 16: Key Trends in Applications (SaaS)
Key Trends in Applications (SaaS) AI - including data, analytics and platforms - saw 24% ACV growth YTD with continuous evolution of data software with infused GenAI & agentic AI. Front-office apps and CRM grew 1% ACV growth YTD, with ServiceNow expanding further into CRM market with recent acquisit
Slide 17: IaaS Results
IaaS Results 3Q25 Results ACV $B 2024 YTD 2025 YTD ACV up 35% Y/Y; surpassed $16B for first time ever 2025 YTD up 33% Fourth consecutive quarter of 30%+ 16.8 Y/Y growth 14.7 14.9 Americas 21.5 42% 12.4 11.2 11.3 2025 YTD Results EMEA 12.0 43% ACV up 33% YTD Growth across all three regions Big 3 hype
Slide 18: Key Trends in Infrastructure (IaaS)
Key Trends in Infrastructure (IaaS) Expansion of IaaS with 33% YTD ACV growth with Americas (42%) & EMEA (50%) from continued demand for compute needs. Big 3 hyperscalers (i.e., AWS, MSFT, Google) had significant growth including 42% ACV YTD with global and sovereign expansion. Enterprise appetite f
Slide 19: As-a-Service Selected Industry Results
As-a-Service Selected Industry Results ACV $B Healthcare 3.5 2.1 3.2 3Q: ACV up 34% Y/Y 1.8 1.9 2.9 3.0 2.5 3.0 3.0 1.5 1.6 2.5 2.4 YTD: ACV up 29%; with IaaS up 34%, 1.4 2.2 2.3 2.2 along with new SaaS offerings 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q Retail & CPG 24 24 24 25 25 25 24
Slide 20: ISG Global Service & Software Provider Standouts
Global Service & Software Provider Standouts THE ISG 15 Our ISG Contracts Database 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 3Q25 © 2025 Information Services Group, In
Slide 21: Service & Software Provider Standouts – Global
Service & Software Provider Standouts – Global The ISG Contracts Database 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-$3B
Slide 22: Summary and Outlook
Summary and Outlook Summary Market Outlook Managed Services Macro Recap • ACV up 1.5% YTD, yet growth is not broad-based • Uncertainty continues to affect segments of the tech stack • Americas ACV up 15% YTD driven by gains in ITO, ER&D and BFSI • U.S. economy showing mixed signals, with some sector
Slide 23: Thank you!
The 92 Quarterly nd Thank you! © 2025 Information Services Group, Inc. All Rights Reserved.
Slide 24: Appendix
Appendix © 2025 Information Services Group, Inc. All Rights Reserved.
Slide 25: Industry Verticals
Industry Verticals Consumer Travel, 2025 YTD Business Packaged Goods Financial Healthcare Telecom Transport Trends Services & Retail Energy Services & Pharma Manufacturing & Media Leisure Combined Market 12% 12% 8% 20% 9% 15% 10% 8% Managed Services -15% -17% 23% 5% 13% 9% -16% -9% As-a-Service 36%
Slide 26: Americas Broader Market Results
Americas Broader Market Results ACV $B 3Q25 Results 10.9 17.3 6.4 9.9 15.8 5.9 Combined market ACV up 30% Y/Y 13.3 5.3 8.1 Managed services ACV up 22% Y/Y XaaS ACV up 35% Y/Y 3Q 2Q 3Q 3Q 2Q 3Q 3Q 2Q 3Q 24 25 25 24 25 25 24 25 25 2025 YTD Results Combined market ACV up $10B versus 2024 25% 15% 32% YT
Slide 27: 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 28: EMEA Broader Market Results
EMEA Broader Market Results ACV $B 3Q25 Results 5.1 Combined Market up 5% Y/Y 9.2 9.1 9.7 5.2 5.9 3.8 3.8 4.2 Managed Services fell below $4B XaaS ACV up 41% 3Q 2Q 3Q 3Q 2Q 3Q 3Q24 2Q 3Q 24 25 25 24 25 25 25 25 2025 YTD Results Combined Market ACV up 14% YTD; inline with 12% growth in 2024 14% -8% 3
Slide 29: 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 30: Asia-Pacific Broader Market Results
Asia-Pacific Broader Market Results ACV $B 3Q25 Results 0.9 5.7 0.8 0.8 5.2 5.3 4.9 Combined market up 10% Y/Y 4.3 4.4 Managed services declined 9% Y/Y XaaS ACV up 14% Y/Y 3Q 2Q 3Q 3Q 2Q 3Q 3Q 2Q 3Q 24 25 25 24 25 25 24 25 25 2025 YTD Results Combined market ACV up 6%; slowest growth of the three re
Slide 31: 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 32: 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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