Information Services Group, Inc. - III STOCK NEWS

The 2024 ISG Provider Lens™ global Life Sciences Digital Services report highlights a significant shift towards decentralized clinical trials in the life sciences industry. Digital technologies are enabling remote patient recruitment, monitoring, and data collection, addressing limitations of traditional centralized trials. AR and VR systems are being introduced to enhance patient participation and data visualization.

The report emphasizes the growing focus on patient-centric research and the use of AI, automation, and NLP in pharmacovigilance and regulatory compliance. Generative AI is emerging as a important tool for improving research and trials. The report also notes the increasing importance of supply chain management and collaborative approaches to regulation in the industry.

The Americas' IT and business services market rebounded in Q2 2023, according to the ISG Index™. Combined ACV rose 10% to $12.1 billion, marking the first double-digit increase since Q2 2022. XaaS spending drove growth, rising 15% to $7.4 billion, while managed services ACV increased 3% to $4.7 billion. The BFSI sector saw an 18% decline in spending, but other industries showed growth. Cloud-based services and AI investments are driving demand, while managed services remain sluggish due to cost optimization focus.

For H1 2023, the combined market rose 4% to $24.2 billion. ISG forecasts 2% revenue growth for managed services and 14% for XaaS in 2024, slightly lower than previous projections. The global market lacks a clear catalyst for higher discretionary spending, with enterprises focusing on cost optimization and AI growth potentially masking underlying weakness in the industry.

European insurers are modernizing core systems to meet growing customer demands and skepticism, according to the 2024 ISG Provider Lens™ Insurance Platform Solutions report. Legacy systems are seen as major obstacles to innovation, restricting adoption of new technologies and leading to increased IT costs and operational inefficiencies.

Insurers are turning to providers to update, upgrade, or replace outdated systems with more efficient solutions. The report highlights the potential for the insurance industry to evolve into a business-friendly ecosystem, with early adopters gaining a competitive edge. Data-driven insights are emphasized as important for identifying new risks and opportunities.

The report evaluates 31 providers across two quadrants: Life and Retirement (L&R) and Property and Casualty (P&C) Insurance Platform Solutions, naming several Leaders and Rising Stars in each category.

The 2024 ISG Provider Lens™ Private/Hybrid Cloud report for the U.S. highlights that cost concerns are driving enterprise investments in private and hybrid cloud services. Many organizations are reducing reliance on public clouds due to IT budget constraints, seeking greater control over costs while maintaining scalability and agility.

Key findings include:

• Companies are cautiously approaching outsourcing with smaller average contract values
• Enterprises are exploring generative AI (GenAI) for cloud management, weighing costs and benefits
• AI and ML features are being implemented to improve IT efficiency and user experience
• Colocation providers are expanding facilities to meet growing demand for high-density computing
• Challenges include the cost and scarcity of AI processing resources and changes in VMware licensing terms

The ISG Index™ reports that Europe's IT and business services market grew slightly by 1% in Q2 2024, reaching US $7.7 billion in ACV. This marks the third consecutive quarter of sequential growth since Q3 2023. The market saw contrasting trends with managed services ACV declining by 8% to US $4.0 billion, while XaaS (cloud-based services) ACV increased by 14% to US $3.7 billion.

Key highlights include:

• 295 managed services contracts signed, up 20% year-over-year
• ITO rose 7% to US $3.3 billion, driven by bundled infrastructure and ADM services
• BPO slumped 45% to US $692 million
• XaaS growth led by IaaS (up 22% to US $2.7 billion), while SaaS declined 2%
• UK remains the largest managed services market despite a 13% decline
• DACH market grew 20% to US $896 million

ISG forecasts 2% revenue growth for managed services and 14% for XaaS in 2024, slightly lower than previous projections due to persistent market uncertainty.

Information Services Group (ISG) (Nasdaq: III) has initiated a research study to evaluate providers of advanced data analytics and AI services. The study will culminate in the publication of the ISG Provider Lens™ reports in January 2025, focusing on data science, AI services, data modernization, and advanced business intelligence (BI) and reporting modernization. The reports will help enterprises assess current vendor relationships, explore new engagements, and leverage analytics and AI to enhance decision-making, operational efficiency, and competitiveness. ISG highlights the increasing importance of clean, secure data and emerging technologies like generative AI (GenAI) in fostering data-driven cultures and innovation. Providers are innovating with frameworks, simulation models, and AI solutions to automate insights generation. The study will cover products and services globally, including Brazil, Europe, and the U.S.

North American insurance companies are modernizing their IT infrastructure by adopting new core systems and SaaS platforms, driven by evolving policyholder demands and rapid changes in industry practices, according to the 2024 ISG Provider Lens™ Insurance Platform Solutions report. The report highlights that outdated IT systems are impeding insurers' ability to innovate and compete. SaaS platforms and modern tech frameworks help insurers manage risks, acquire customers, and enhance policyholder services. However, integration with legacy systems poses challenges. The report also notes the potential of generative AI to improve insurance operations, though it is currently in the pilot phase. Major insurance providers like EIS and Majesco are recognized as leaders, while companies like Accenture ALIP and Guidewire are also notable players. The report underscores the importance of data modernization and the elimination of data silos.

Enterprises in the Nordics are prioritizing a hybrid cloud strategy focused on sustainability and financial viability, diverging from the 'cloud first' approach seen elsewhere. The ISG Provider Lens™ report highlights the region's leadership in green data center solutions, leveraging renewable energy such as hydro and wind power. Nordic data centers emphasize energy efficiency, carbon neutrality, and eco-friendly practices, including advanced cooling techniques and waste heat repurposing. Despite leading in sustainability, the Nordics lag in AI implementation due to challenges in data management and governance. The 2024 report also notes the expansion of edge computing infrastructure driven by IoT and low-latency demands. Key providers like Orange Business and Tietoevry are recognized as leaders across multiple quadrants, with Green Mountain earning high customer satisfaction scores.

Insurance companies in Asia Pacific are increasingly adopting advanced technology platforms to stay competitive in a rapidly growing market, according to the 2024 ISG Provider Lens™ Insurance Platform Solutions report.

These modern core systems enhance agility, speed up product rollouts, and improve decision-making, despite challenges like tight budgets and weak balance sheets. The report highlights that insurers in less mature markets such as India, Thailand, and Malaysia are leading this transformation to capitalize on double-digit growth rates.

Key benefits of digital platforms include higher efficiency, scalability, better security, and improved customer experience. Many insurers are also leveraging AI and cloud computing for data modernization and operational improvements.

The report evaluates the capabilities of 28 providers and names Peak3, Sapiens, and TCS BaNCS as leaders in both Life and Retirement and Property and Casualty Insurance Platform Solutions quadrants.