Information Services Group, Inc. - III STOCK NEWS

Information Services Group (III) reported resilient growth in EMEA's IT and business services market for Q3, with a combined ACV reaching $7.6 billion, reflecting a 7% year-over-year increase. However, sequential growth has slowed for two consecutive quarters, primarily due to declining demand for SaaS, which dropped 14% to $924 million. Managed services saw a record 281 contracts signed, up 15% year-on-year, while IT outsourcing rose 21% to $3.1 billion. YTD ACV hit a record $23.2 billion, but ISG has adjusted growth forecasts downwards amid economic uncertainties.

Workday's migration to cloud-based solutions is rapidly changing workforce management in the U.S. public sector, especially post-COVID-19. The 2022 ISG Provider Lens™ Workday Ecosystem report highlights the challenges faced by governments in attracting and retaining employees due to economic disruptions. Workday provides a unified HCM platform that is gaining traction, allowing organizations to improve service delivery. However, the shortage of skilled Workday experts necessitates engaging service providers for effective implementation. The report evaluates 18 providers, naming several as Leaders across different quadrants.

ISG Provider Lens™ report highlights that European enterprises are increasingly adopting Workday for human capital management modernization amid rising digitalization and pandemic influences. The report notes a growing demand for cloud-based solutions, particularly in the U.K., Germany, and Nordic regions. Workday is adapting its offerings to meet local needs, while consulting and managed services are expected to expand as enterprises navigate complex transitions. Key service providers such as Accenture, Alight, and Deloitte are recognized as leaders in the ecosystem.

Information Services Group (NASDAQ: III) reports a slight decrease in global IT and business services spending for Q3 2022, marking the first year-over-year decline since Q4 2016. The total annual contract value (ACV) reached $23.2 billion, down 3% from the previous year. However, contract activity remains robust, with 661 managed services contracts signed, a 3% increase year-over-year. Despite these challenges, ISG maintains a growth forecast of 3.5% for managed services while reducing the XaaS forecast from 18% to 10.5% due to economic uncertainties.

U.S. enterprises are increasingly migrating from on-premises ERP to Workday's cloud-based platform, driven by the need for flexibility and user experience, per the ISG Provider Lens™ report. Remote work trends, accelerated by the pandemic, have intensified reliance on software for human capital management (HCM) functions. Workday offers a holistic solution that simplifies data management and is rapidly gaining traction across various sectors in the U.S., especially retail and financial services. The report assesses 21 providers, highlighting leaders like Accenture and Deloitte, and notes rising stars in the field.

ISG presented key insights at the Meeting the Challenge of Modern Security Threats in the Cloud virtual event, emphasizing that 45% of cyber breaches in 2021 targeted cloud platforms. Expert Doug Saylors highlighted that many enterprises mistakenly believe that cloud adoption includes automatic risk management. He stressed the necessity for organizations to conduct cybersecurity assessments to identify vulnerabilities, especially since human error remains a major factor in breaches. The firm advocates for tailored cybersecurity strategies to enhance resilience and limit potential attacks.

ISG Provider Lens™ report reveals significant advancements in the U.K. power sector's digital transformation. Utilities are leading in smart grid technology, driven by decarbonization and decentralization. The report highlights investments in SaaS, cloud computing, and AI to enhance operational efficiency and customer service. While the sector aims for substantial green energy capacity growth, challenges remain, including rising energy costs, cybersecurity, and infrastructure upgrades necessary for integrating new energy sources. The report evaluates 33 providers and names Accenture, IBM, and Infosys as Leaders across five quadrants.

North American Utilities: A recent ISG report highlights the adoption of digital technologies by utilities in the U.S. and Canada as they transition to renewable energy sources. The report reveals that North American utilities face both challenges and opportunities amidst evolving customer expectations and legislative pressures for decarbonization. It emphasizes the need for improved data governance and digital foundations to enhance service reliability. Notably, leaders such as Accenture and IBM are recognized for their capabilities across various service quadrants.