Information Services Group, Inc. (III) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hi, everyone, and welcome to the third quarter 2025 ISG Index Call. My name is Stanton Jones, and with me today is Steve Hall, partner and president, ISG EMEA, Nirmatha Darshan, chief business leader for ISG India, and Mark Smith, ISG chief software analyst. This is our 92nd consecutive ISG Index Call, so for those of you that have been joining us for many years, thank you for investing some of your time with ISG today. And for those of you that may be on your first index call, just some quick background. The ISG Index measures the overall health and growth of the technology industry, which includes both managed technology services and cloud-based software and infrastructure services. And we do this by tracking and analyzing annual contract value, or ACV, as a leading indicator of where revenues are likely to be in the future. So just think of ACV as bookings. Okay, so with that, Steve, I'll turn it over to you to kick us off. Great, Stan. Thanks a lot. And welcome, everybody. 92nd consecutive quarters is great. So let's kind of take away sort of the five key takeaways from the year to date and sort of the quarter. So I would say, first of all, we really continue to see enterprise shifting towards cloud-first platforms. The as-a-service market, which includes infrastructure and software as a service, was up nearly 30%. deals tied to AI. So the hyperscalers really saw amazing growth, as we'll talk through later. SAS is also performing consistently well, though, and we saw growth across IT service management, collaboration, and analytics. So I think the key part is I think we're beyond the hype a little bit on AI, and it's really fundamental replatforming that we're seeing with organizations. On the managed services side, the growth was pretty sluggish. The Americas sh...