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Two-Thirds of Enterprises Using Managed Service Providers for GenAI, ISG Study Finds

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According to a new ISG Market Lens™ study, 65% of enterprises are utilizing managed service providers (MSPs) for their generative AI initiatives, while 35% are developing capabilities in-house. The main drivers for MSP engagement include acquiring expertise, addressing capability limitations, and accelerating projects. The study, which surveyed 201 G2000 executives, reveals that enterprises spend an average of $2.6 million per GenAI use case, with spending expected to increase by 50% in 2025. A significant 45% of enterprises cite skills shortage as their top challenge, driving the need for external support. Companies building in-house capabilities primarily do so due to specialized knowledge and unique business requirements.

Secondo un nuovo studio ISG Market Lens™, il 65% delle imprese sta utilizzando fornitori di servizi gestiti (MSP) per le proprie iniziative di intelligenza artificiale generativa, mentre il 35% sta sviluppando capacità internamente. I principali motivi per coinvolgere gli MSP includono l'acquisizione di competenze, la risoluzione di limitazioni nelle capacità e l'accelerazione dei progetti. Lo studio, che ha sondato 201 dirigenti delle G2000, rivela che le imprese spendono in media 2,6 milioni di dollari per ogni caso d'uso di GenAI, con una spesa prevista in aumento del 50% entro il 2025. Una significativa percentuale del 45% delle imprese cita la carenza di competenze come la propria principale sfida, spingendo così la necessità di supporto esterno. Le aziende che costruiscono capacità interne lo fanno principalmente a causa di conoscenze specializzate e requisiti aziendali unici.

Según un nuevo estudio de ISG Market Lens™, el 65% de las empresas está utilizando proveedores de servicios gestionados (MSP) para sus iniciativas de inteligencia artificial generativa, mientras que el 35% está desarrollando capacidades internamente. Los principales motivos para involucrar a los MSP incluyen la adquisición de experiencia, la atención a limitaciones de capacidades y la aceleración de proyectos. El estudio, que encuestó a 201 ejecutivos de G2000, revela que las empresas gastan un promedio de 2,6 millones de dólares por cada caso de uso de GenAI, y se espera que el gasto aumente en un 50% para 2025. Un 45% significativo de las empresas cita la escasez de habilidades como su principal desafío, lo que impulsa la necesidad de apoyo externo. Las empresas que desarrollan capacidades internas lo hacen principalmente debido a conocimientos especializados y requisitos comerciales únicos.

새로운 ISG Market Lens™ 연구에 따르면, 65%의 기업들이 자사의 생성적 AI 이니셔티브를 위해 관리 서비스 제공업체(MSP)를 활용하고 있으며, 35%는 내부적으로 기능을 개발하고 있습니다. MSP 참여의 주요 동기는 전문 지식 습득, 기능 제한 해결 및 프로젝트 가속화를 포함합니다. 201명의 G2000 경영진을 대상으로 조사한 이 연구는 기업들이 GenAI 사용 사례당 평균 260만 달러를 지출하고 있으며, 2025년까지 지출이 50% 증가할 것으로 예상된다고 발표합니다. 기업의 45%가 가장 큰 도전 과제로 인력난을 언급해 외부 지원의 필요성을 느끼고 있습니다. 내부적으로 기능을 구축하는 기업들은 주로 전문 지식과 고유한 비즈니스 요구사항 때문입니다.

Selon une nouvelle étude ISG Market Lens™, 65% des entreprises utilisent des fournisseurs de services gérés (MSP) pour leurs initiatives d'intelligence artificielle générative, tandis que 35% développent des capacités en interne. Les principaux moteurs de l'engagement des MSP incluent l'acquisition d'expertise, la résolution des limitations de capacités, et l'accélération des projets. L'étude, qui a sondé 201 cadres des G2000, révèle que les entreprises dépensent en moyenne 2,6 millions de dollars par cas d'utilisation de GenAI, avec des dépenses qui devraient augmenter de 50% d'ici 2025. Un 45% significatif des entreprises cite le manque de compétences comme leur principal défi, ce qui accentue le besoin de soutien extérieur. Les entreprises qui construisent des capacités internes le font principalement en raison de connaissances spécialisées et d'exigences commerciales uniques.

Laut einer neuen ISG Market Lens™-Studie nutzen 65% der Unternehmen Managed Service Provider (MSP) für ihre Initiativen im Bereich der generativen KI, während 35% Fähigkeiten intern entwickeln. Die Hauptgründe für die Beauftragung von MSPs sind die Gewinnung von Fachwissen, das Angehen von Kapazitätsbeschränkungen und die Beschleunigung von Projekten. Die Studie, die 201 Führungskräfte der G2000 befragte, zeigt, dass Unternehmen im Durchschnitt 2,6 Millionen Dollar pro GenAI-Anwendungsfall ausgeben, wobei die Ausgaben bis 2025 um 50% steigen sollen. Eine erhebliche 45% der Unternehmen gibt an, dass Fachkräftemangel ihre größte Herausforderung darstellt, was die Notwendigkeit externer Unterstützung begründet. Unternehmen, die interne Fähigkeiten aufbauen, tun dies hauptsächlich aufgrund spezialisierten Wissens und einzigartiger geschäftlicher Anforderungen.

Positive
  • Enterprise GenAI spending projected to increase 50% in 2025
  • Strong market adoption with 65% of enterprises using MSPs for GenAI initiatives
  • Average spending of $2.6M per GenAI use case indicates significant investment commitment
Negative
  • 45% of enterprises facing skills shortage in GenAI implementation
  • High implementation costs at $2.6M per use case may limit adoption

Insights

The survey reveals significant market dynamics in the GenAI service provider landscape, with 65% of enterprises opting for MSPs. The projected 50% increase in GenAI spending for 2025 and average investment of $2.6 million per use case indicates substantial market growth potential for service providers and technology companies.

The skills shortage driving MSP adoption presents a compelling opportunity for III (Information Services Group) as a research and advisory firm. Their positioning at the intersection of enterprise needs and service provider capabilities, combined with their deep market insights, could lead to increased demand for their advisory services. The study's findings about two-way knowledge transfer and ROI expectations suggest a maturing market that will require ongoing guidance and research support.

Survey of global decision-makers finds enterprises look to provider partners for expertise, technology and capacity

STAMFORD, Conn.--(BUSINESS WIRE)-- New survey research from leading global technology research and advisory firm Information Services Group (ISG) (Nasdaq: III) finds two-thirds of enterprises are using managed service providers (MSPs) to support their generative AI (GenAI) initiatives.

Sixty-five percent of the enterprises surveyed for the new ISG Market Lens™ GenAI Use Case Study report they are using MSPs for GenAI initiatives, while 35 percent of enterprises are building their GenAI capabilities in-house.

The main reasons enterprises choose to engage a provider to support their GenAI initiative, the study found, are to acquire expertise and knowledge and address in-house capability limitations. Speed and the need to accelerate projects are also a factor.

Most providers are delivering traditional managed services such as application maintenance and infrastructure services, along with GenAI-specific services such as data preparation or governance.

“Companies are applying their own version of the ‘engineer’s triangle’ concept – trying to balance expertise, cost and capacity – when deciding to use an MSP for GenAI initiatives,” said Alex Bakker, ISG distinguished analyst and co-author of the study. “Though outsourcing is often viewed as a transfer of expertise from an enterprise client to a provider, outsourcing for GenAI use cases is perceived as a two-way street, giving organizations access to skills they don’t yet have and enabling them to build skills internally at the same time.”

Businesses that are building GenAI capabilities in house rather than using MSPs say they possess specialized knowledge and are developing AI solutions tailored to their unique business requirements.

A January 2024 ISG Market Lens AI Study found many enterprises consider innovation to be an internal strength, a point that is reinforced by the results of the new study, which finds the companies that are choosing not to engage MSPs are using in-house expertise to build GenAI capabilities and resources. Relatively few organizations cited cost considerations or data privacy and security concerns.

Access to specialized AI skills remains a challenge, however, with 45 percent of enterprise respondents to the January 2024 study citing a lack of skills as their top challenge.

“The skills shortage remains challenging and is driving the need for external support from managed service providers,” said Michael Dornan, principal analyst and co-author of the study. “GenAI has moved quickly, but many enterprises already wish they had started earlier, logged successes or failures faster, and used external support more in that learning process.”

The study predicts enterprise spending on GenAI initiatives will increase by 50 percent in 2025, as companies expect to achieve a greater share of their return on investment (ROI) in the technology in the coming year.

“Enterprises are hoping for big productivity, efficiency and cost improvement gains from GenAI, but with enterprise spending averaging $2.6 million on each GenAI use case, organizations will need more scaled projects to reach their goals,” Bakker said. “For the foreseeable future, we believe the growth of GenAI and the associated talent shortage will continue to drive growth in MSP contract activity.”

The ISG study surveyed 201 executives in G2000 enterprises in the Americas and Europe with decision making responsibility for their organization's biggest GenAI use cases, in August 2024.

ISG Market Lens™ buyer behavior studies combine findings from surveys of senior-level global executives with expert ISG research and analysis on market trends and strategic business initiatives. Recent studies explored mainframes, AI, cloud, application development and maintenance , BPO, cybersecurity, global capability centers and sustainability.

Contact ISG for more information on ISG Market Lens research.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com



Julianna Sheridan, Matter Communications for ISG

+1 978 518 4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What percentage of enterprises are using MSPs for GenAI initiatives according to ISG (III)?

According to the ISG study, 65% of enterprises are using managed service providers (MSPs) for their GenAI initiatives.

How much do enterprises spend on average per GenAI use case?

Enterprises spend an average of $2.6 million on each GenAI use case.

What is the projected increase in enterprise GenAI spending for 2025?

The study predicts enterprise spending on GenAI initiatives will increase by 50% in 2025.

What percentage of enterprises cite skills shortage as their top GenAI challenge?

45% of enterprise respondents cite a lack of skills as their top challenge in GenAI implementation.

Information Services Group, Inc.

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