Information Services Group, Inc. - III STOCK NEWS

Information Services Group (NASDAQ: III) reports a challenging Q1, with managed services and cloud-based XaaS seeing declines in demand. Managed services ACV fell 1% year-over-year to $5.2 billion, while cloud-based XaaS dropped 11% to $7.3 billion, marking its steepest decline. The overall commercial outsourcing market's ACV stood at $12.5 billion, down 7%, the most significant drop since 2015. Despite this, there was a 12% increase in managed services from Q4, hinting at a potential rebound. ISG has revised its 2023 global XaaS growth forecast down to 15% from an earlier estimate of 17%. The firm highlights a cautious approach among enterprises amid macroeconomic uncertainties.

GEP has been recognized as a Leader for the third consecutive year in the ISG Provider Lens™ report for Business Process Outsourcing (BPO) and Transformation Services 2023. The report highlights GEP's strengths in addressing complex categories in sourcing and spend management, as well as its success in managing large engagements. GEP excels in both BPO Services and Transformation Consulting Services for Large Accounts and Midmarket. The firm's comprehensive approach integrates consulting, managed services, and technology, making it a strategic partner for businesses looking to enhance procurement and supply chain efficiency. GEP's technological capabilities, including its proprietary GEP SMART platform and AI-driven solutions, further solidify its leadership position in the market.

Information Services Group (Nasdaq: III) has released the 2023 ISG Provider Lens™ report, highlighting trends in procurement BPO and transformation services.

While spending on procurement outsourcing has slowed from a pandemic peak of 30% year-over-year to around 15-20%, enterprises continue to modernize procurement processes amid economic uncertainty.

Manufacturing firms lead in procurement outsourcing, representing nearly 30% of engagements. Automation is expanding, integrating AI and machine learning. The report also emphasizes ESG compliance in procurement, with 80% of enterprises committed to sustainable practices.

Leading service providers include Accenture, Genpact, and IBM, with Tech Mahindra identified as a Rising Star.

Information Services Group (Nasdaq: III) reported a 5% decline in first-quarter demand for IT and business services in Europe, continuing a downward trend. The combined market for managed services and cloud-based as-a-service saw an annual contract value (ACV) of US $7.4 billion, remaining flat quarterly but down 5% year-on-year. Managed services ACV increased 4% sequentially to US $3.7 billion, supported by a record number of contracts, totaling 292.

However, XaaS revenue dropped 6% annually to US $3.7 billion, with infrastructure-as-a-service decreasing 10%. The forecast for global XaaS growth was revised down to 15% for 2023. Despite challenges, the company sees potential for improved demand later in the year.

On April 14, 2023, GEP was recognized as a Leader in the ISG Provider Lens 2023 for both 'Large Accounts' and 'Midmarket' procurement software, marking its third consecutive year in the top position. GEP, a prominent provider of procurement and supply chain solutions, emphasizes its innovative software-plus-services model, including direct sourcing and low-code application integration. Analysts highlight GEP's unique approach compared to traditional ERP solutions, which often require costly, multi-year commitments. Strengths attributed to GEP SOFTWARE include superior direct materials management capabilities and a unified AI-driven platform that integrates procurement and supply chain processes. This recognition positions GEP as a vital partner for companies seeking to enhance operational efficiency and drive shareholder value.

Enterprise investments in procurement software continue to grow as businesses adapt to the challenges posed by the COVID-19 pandemic, according to a report by Information Services Group (III). The 2023 ISG Provider Lens™ report indicates that large and midsize firms increased expenditures on procurement platforms by 20-30% in 2022, maintaining the pace seen in prior years. This trend underscores a shift towards software solutions over procurement outsourcing.

The report highlights that while supply chains have improved post-pandemic, issues like inflation and geopolitical tensions remain, complicating procurement processes. Advanced procurement platforms are increasingly integrating AI and machine learning, aiming to automate and enhance operational efficiencies.

Information Services Group (III) reports mixed results in its first-quarter 2023 state-of-the-industry report. Managed services ACV reached a record high of $9.8 billion, representing a 1% year-over-year increase and a sequential 2% growth. However, the XaaS segment saw a 13% decline, marking its fourth consecutive quarter of decreases, with total ACV at $14.3 billion. The firm forecasts a lower XaaS growth rate of 15% for 2023, down from an earlier estimate, while maintaining managed services growth at 5%. The decline in cloud demand is attributed to cautious enterprise spending amid economic uncertainties.

Information Services Group (NASDAQ: III) has announced the acceptance of nominations for the second annual ISG Women in Digital Awards, expanding its reach from the Americas to include EMEA, Asia Pacific, and India. This initiative aims to recognize exceptional leadership among women in digital roles. Last year's program was successful, honoring leaders from companies like AECOM and Twitter. The judging panel will consist of independent experts evaluating nominations across five categories: Digital Innovator, Rock Star Leader, Women’s Advocate, Rising Star, and Digital Titan of the Year. Nominations are open until May 26, with winners revealed in September and October during virtual ceremonies. This awards program is part of ISG’s broader initiative to promote diversity and innovation in the workplace.

ISG Provider Lens™ Report Highlights Salesforce Implementation Trends in the U.K.

According to the 2023 ISG Provider Lens™ report, U.K. enterprises are increasingly seeking Salesforce implementation and integration services, particularly those specializing in Industry Cloud solutions. The report emphasizes a preference for ready-to-use solutions requiring minimal customization. Major service providers are enhancing their Salesforce portfolios through acquisitions and investments, while also maintaining strong relationships with existing clients. The report identifies key verticals for Salesforce Industry Cloud implementation, including financial services, healthcare, and manufacturing. Notably, Accenture, Cognizant, and Infosys are recognized as Leaders in multiple categories, underscoring the competitive landscape in the Salesforce ecosystem.