ISG to Study Public Sector Service and Solution Providers

Key Terms

managed it services technical

Managed IT services are when a business hires an external provider to run, monitor and support its computer systems, networks and cloud tools on an ongoing basis, including maintenance, security, backups and helpdesk support. For investors, this matters because it shifts one-off technology projects into steady, contract-based revenue, can lower the chance of outages or breaches, and signals predictable costs and scalable growth—similar to subscribing to a utility instead of owning complex equipment.

business process outsourcing technical

Business process outsourcing is when a company hires an outside firm to perform routine operational tasks—such as payroll, customer support, IT operations, or back-office administration—so the company can focus on its core products or services. Investors care because outsourcing often lowers costs, improves scalability and flexibility, and shifts operational risks; changes in a company’s outsourcing strategy can therefore affect profit margins, growth prospects and regulatory or service-quality risks.

digital transformation technical

Digital transformation is the process of using digital technologies to fundamentally change how organizations operate, deliver value, and connect with customers. It often involves updating systems, automating tasks, and improving digital tools to increase efficiency and stay competitive. For investors, it signifies a company's ability to adapt to technological advances, which can impact its growth prospects and long-term success.

self-service e-portals technical

An online platform that lets customers, investors, employees or partners complete tasks themselves—like viewing accounts, making payments, filing forms, or downloading documents—without needing phone calls or in-person help. Think of it as a digital self-checkout or ATM for routine interactions; for investors it matters because these portals can lower service costs, speed transactions, improve customer satisfaction, and surface data that influences revenue, compliance and operational risk.

open data platforms technical

Open data platforms are online systems that collect, store and share structured information (often via downloadable files or application programming interfaces) so anyone can access and use it. For investors they matter because these platforms make company, market or regulatory data easier to verify and analyze—like a public library or farmers’ market for raw facts—reducing research costs, improving transparency and helping spot risks or opportunities faster.

intelligent chatbots technical

AI-powered conversational systems that understand and respond to written or spoken questions, like a virtual assistant that can handle customer requests, guide users through tasks, or summarize information. Investors watch them because they can cut service costs, speed up sales and support, and create new product features, but they also bring considerations around accuracy, data privacy, and ongoing development costs—similar to buying a faster, cheaper customer service team that needs maintenance.

generative tools technical

Generative tools are software powered by artificial intelligence that create new text, images, audio, code or data on demand—like a virtual assistant that can draft reports, design ads or write software. Investors care because these tools can boost productivity, reduce costs and enable new products or revenue streams, but they also introduce risks to quality, legal exposure and competitive dynamics that can materially affect a company’s growth and value.

customer experience (cx) technical

Customer experience (CX) is the overall impression and feelings a person has when interacting with a business or service, much like how a customer feels after visiting a store or using an app. It includes every touchpoint, from browsing to purchasing and support, shaping their satisfaction and loyalty. For investors, strong CX often indicates a company's ability to attract and retain customers, which can lead to long-term success.

Upcoming ISG Provider Lens^® reports will evaluate providers that deliver innovative, scalable solutions to public agencies

STAMFORD, Conn.--(BUSINESS WIRE)-- Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm, has launched a research study examining providers that enable enterprises in the public sector to advance digital transformation and strengthen delivery of public services.

The study results will be published in a series of comprehensive ISG Provider Lens^® reports, called Public Sector Services and Solutions, scheduled to be released in September 2026. The reports will cover companies offering strategy and enablement, managed IT and outsourcing services, as well as support for local and devolved governments, digital modernization and AI and innovation.

Enterprise buyers will be able to use information from the reports to evaluate their current vendor relationships, potential new engagements and available offerings, while ISG advisors use the information to recommend providers to the firm’s buy-side clients.

Public sector leaders are balancing tight budgets and ongoing economic uncertainty with increasing citizen demands for seamless, equitable services. Governments are accelerating AI and digital adoption and investment strategies to improve resilience, efficiency and outcomes and focusing on invest-to-save strategies, such as digitizing legacy processes. Human-centered transformation is a priority, and linking siloed systems for fluid data sharing is becoming non-negotiable.

Service providers are evolving into strategic partners, emphasizing transparency and lifecycle value. ISG says the market outlook is cautiously optimistic, with accelerated modernization waves that will ease administrative loads with AI and automation, freeing staff for strategic work and positioning adaptive governments for long-term transformation.

“Public organizations face an urgent need to deliver outcomes that matter: safer communities, healthier populations and resilient infrastructure,” said Iain Fisher, director at ISG. “However, they also need to address growing concerns about data trust, transparency and security.”

ISG has distributed surveys to more than 250 public sector service and solution providers. Working in collaboration with ISG’s global advisors, the research team will produce six quadrants representing the services and solutions typical public sector enterprises are buying, based on ISG’s experience working with its clients. The six quadrants are:

• Strategy and Enablement Services (Consulting), evaluating providers of innovative strategies and actionable insights to optimize operations and enhance service delivery. These providers help public agencies set measurable goals and adopt frameworks aligned with those goals.
• Managed IT Services, assessing providers that modernize IT infrastructure, enabling public institutions to focus on their core responsibilities. These providers are assessed on their ability to provide end-to-end IT infrastructure management and deliver region-specific capabilities.
• Business Process and Other Outsourcing Services, covering providers of outsourcing services that foster innovation to improve service delivery. These providers enable accountability and performance through robust service-level agreements while helping to mitigate outsourcing risks.
• Services to Local and Devolved Governments, evaluating providers that help local governments improve service delivery by adopting creative solutions. These providers are assessed on their ability to support regional digital transformation initiatives.
• Digital Transformation and Modernization Services, assessing providers that implement self-service e-portals and open data platforms that enable citizens to access government services easily. These providers help governments make data-driven decisions through digital transformation efforts.
• AI and Innovation Services, covering providers that deploy AI solutions such as intelligent chatbots and generative tools to enable seamless self-service for citizens. These providers are assessed on their ability to offer human-centered AI services and scalable frameworks.

Geographically focused reports from the study will cover the global public sector services and solutions market and examine products and services available in Australia, Brazil, the U.K. and the U.S. ISG analysts Harish B (Australia, U.K. and U.S.) and Mara Kukla (Brazil) will serve as authors of the reports.

A list of identified providers and vendors and further details on the study are available in this digital brochure. Companies not listed as public sector service and solutions providers can contact ISG and ask to be included in the study.

All 2026 ISG Provider Lens^® evaluations feature expanded customer experience (CX) data that measures actual enterprise experience with specific provider services and solutions, based on ISG’s continuous CX research.

About ISG

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 organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260408927691/en/

Press:

Laura Hupprich, ISG

+1 203-517-3100

laura.hupprich@isg-one.com



EriK Arvidson, Matter Communications for ISG

+1 978-518-4542

isg@matternow.com

Source: Information Services Group, Inc.