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Asia Pacific Firms Use Google Cloud to Modernize, Innovate
Asia Pacific Firms Use Google Cloud to Modernize, Innovate

Business Wire

time5 days ago

  • Business
  • Business Wire

Asia Pacific Firms Use Google Cloud to Modernize, Innovate

SYDNEY--(BUSINESS WIRE)--Enterprises in Asia Pacific are adopting Google Cloud solutions to remain competitive by modernizing complex IT infrastructure and making better use of data, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm. Companies in Asia Pacific need to move data and workloads from legacy systems to modern, scalable platforms for future agility. Many are turning to Google and its provider partners for the tools and services they need for that transition. The 2025 ISG Provider Lens ® Google Cloud Partner Ecosystem report for Asia Pacific finds that companies in the region are transforming their digital infrastructures through cloud migration and data innovation. While keeping up with rapidly evolving technologies, enterprises in Asia Pacific are also under growing pressure to control costs, making it imperative that they maximize their return on cloud investments. Google Cloud's focus on addressing these challenges positions it as a preferred partner in the region. 'Companies in Asia Pacific need to move data and workloads from legacy systems to modern, scalable platforms for future agility,' said Michael Gale, partner and regional leader, ISG Asia Pacific. 'Many are turning to Google and its provider partners for the tools and services they need for that transition.' Demand for cloud services is rising quickly in Asia Pacific, accelerated by the need for better flexibility and operational performance, the report says. Companies need effective, reliable cloud solutions to support a growing number of applications, including business intelligence and customer relationship management. Cloud adoption varies widely with differing levels of digital maturity in the region. Established markets such as Australia and New Zealand lead in advanced cloud solutions, while companies in emerging markets are rapidly integrating cloud services. In Southeast Asia, some governments are encouraging the trend with initiatives to promote digital economies. Generative AI is also gaining traction among enterprises in the region as companies begin to see it as essential for improved operational efficiency and customer engagement, ISG says. Enterprises are exploring GenAI applications including chatbots, predictive analytics and workflow automation. Google Cloud's AI and ML tools, such as Vertex AI, are becoming integral to these efforts. The rise of AI in Asia Pacific is also increasing demand for managed services to deploy and run AI solutions. Many enterprises in Asia Pacific are adopting hybrid cloud and multicloud strategies to balance flexibility, scalability and control by combining on-premises and public cloud resources, the report says. They are turning to service providers offering comprehensive support for these strategies, including tools such as Google Anthos for workload management across clouds. The rising importance of advanced analytics and data visualization in the region also is driving adoption of Google Cloud solutions, ISG says. Companies are seeking real-time analytics backed by a focus on data quality and governance. 'Enterprises in Asia Pacific are recognizing that their data needs to be accurate, accessible and compliant with data protection laws,' said Sonam Chawla, lead analyst, ISG Provider Lens Research, and lead author of the report. 'Solutions that support these strategic objectives help to create trust among companies and their partners.' The report also examines other trends in the Asia Pacific Google Cloud ecosystem, including growing demand for AI-enabled supply chain management and the rising need for data localization and security to comply with national laws. For more insights into Google Cloud-related challenges facing enterprises in Asia Pacific, plus ISG's advice for addressing them, see the ISG Provider Lens ® Focal Points briefing here. The 2025 ISG Provider Lens ® Google Cloud Partner Ecosystem report for Asia Pacific evaluates the capabilities of 32 providers across four quadrants: Google Cloud Professional Services (Consulting and Migration), Google Cloud Managed Services, Google Cloud Enterprise Data Infrastructure Services and Google Cloud GenAI and AI Services. The report names Accenture, Capgemini, Cognizant, HCLTech, Infosys, Persistent Systems, TCS and Wipro as Leaders in all four quadrants. It names Tech Mahindra as a Leader in two quadrants and DXC Technology, LTIMindtree, Mantel Group and Quantiphi as Leaders in one quadrant each. In addition, NTT DATA is named as a Rising Stars — a company with a 'promising portfolio' and 'high future potential' by ISG's definition — in two quadrants. Cloud4C and Searce are named as Rising Stars in one quadrant each. In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2025 among Google Cloud Partners Ecosystem providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry. The 2025 ISG Provider Lens ® Google Cloud Partner Ecosystem report for Asia Pacific is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lens ® Research The ISG Provider Lens ® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage. 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, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

Asia Pacific Firms Use Google Cloud to Modernize, Innovate
Asia Pacific Firms Use Google Cloud to Modernize, Innovate

Globe and Mail

time5 days ago

  • Business
  • Globe and Mail

Asia Pacific Firms Use Google Cloud to Modernize, Innovate

Enterprises in Asia Pacific are adopting Google Cloud solutions to remain competitive by modernizing complex IT infrastructure and making better use of data, according to a new research report published today by Information Services Group ( ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm. The 2025 ISG Provider Lens ® Google Cloud Partner Ecosystem report for Asia Pacific finds that companies in the region are transforming their digital infrastructures through cloud migration and data innovation. While keeping up with rapidly evolving technologies, enterprises in Asia Pacific are also under growing pressure to control costs, making it imperative that they maximize their return on cloud investments. Google Cloud's focus on addressing these challenges positions it as a preferred partner in the region. 'Companies in Asia Pacific need to move data and workloads from legacy systems to modern, scalable platforms for future agility,' said Michael Gale, partner and regional leader, ISG Asia Pacific. 'Many are turning to Google and its provider partners for the tools and services they need for that transition.' Demand for cloud services is rising quickly in Asia Pacific, accelerated by the need for better flexibility and operational performance, the report says. Companies need effective, reliable cloud solutions to support a growing number of applications, including business intelligence and customer relationship management. Cloud adoption varies widely with differing levels of digital maturity in the region. Established markets such as Australia and New Zealand lead in advanced cloud solutions, while companies in emerging markets are rapidly integrating cloud services. In Southeast Asia, some governments are encouraging the trend with initiatives to promote digital economies. Generative AI is also gaining traction among enterprises in the region as companies begin to see it as essential for improved operational efficiency and customer engagement, ISG says. Enterprises are exploring GenAI applications including chatbots, predictive analytics and workflow automation. Google Cloud's AI and ML tools, such as Vertex AI, are becoming integral to these efforts. The rise of AI in Asia Pacific is also increasing demand for managed services to deploy and run AI solutions. Many enterprises in Asia Pacific are adopting hybrid cloud and multicloud strategies to balance flexibility, scalability and control by combining on-premises and public cloud resources, the report says. They are turning to service providers offering comprehensive support for these strategies, including tools such as Google Anthos for workload management across clouds. The rising importance of advanced analytics and data visualization in the region also is driving adoption of Google Cloud solutions, ISG says. Companies are seeking real-time analytics backed by a focus on data quality and governance. 'Enterprises in Asia Pacific are recognizing that their data needs to be accurate, accessible and compliant with data protection laws,' said Sonam Chawla, lead analyst, ISG Provider Lens Research, and lead author of the report. 'Solutions that support these strategic objectives help to create trust among companies and their partners.' The report also examines other trends in the Asia Pacific Google Cloud ecosystem, including growing demand for AI-enabled supply chain management and the rising need for data localization and security to comply with national laws. For more insights into Google Cloud-related challenges facing enterprises in Asia Pacific, plus ISG's advice for addressing them, see the ISG Provider Lens ® Focal Points briefing here. The 2025 ISG Provider Lens ® Google Cloud Partner Ecosystem report for Asia Pacific evaluates the capabilities of 32 providers across four quadrants: Google Cloud Professional Services (Consulting and Migration), Google Cloud Managed Services, Google Cloud Enterprise Data Infrastructure Services and Google Cloud GenAI and AI Services. The report names Accenture, Capgemini, Cognizant, HCLTech, Infosys, Persistent Systems, TCS and Wipro as Leaders in all four quadrants. It names Tech Mahindra as a Leader in two quadrants and DXC Technology, LTIMindtree, Mantel Group and Quantiphi as Leaders in one quadrant each. In addition, NTT DATA is named as a Rising Stars — a company with a 'promising portfolio' and 'high future potential' by ISG's definition — in two quadrants. Cloud4C and Searce are named as Rising Stars in one quadrant each. In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2025 among Google Cloud Partners Ecosystem providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry. The 2025 ISG Provider Lens ® Google Cloud Partner Ecosystem report for Asia Pacific is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lens ® Research The ISG Provider Lens ® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage. 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, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

Asian Automakers Invest in Digital, Electrified Future
Asian Automakers Invest in Digital, Electrified Future

Yahoo

time6 days ago

  • Automotive
  • Yahoo

Asian Automakers Invest in Digital, Electrified Future

Automotive and mobility firms adopt advanced features, methodologies to reshape development and production, ISG Provider Lens® report says SYDNEY, July 24, 2025--(BUSINESS WIRE)--Automotive and mobility companies in Asia Pacific are developing advanced digital vehicle platforms and features to stay competitive amid rapid electrification and changing consumer expectations, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm. The 2025 ISG Provider Lens® Automotive and Mobility Services and Solutions report for Asia Pacific finds that the market for electric and hybrid vehicles in the region continues to grow, driven in part by government support, urbanization and environmental concerns. Interest in and development of autonomous vehicles (AVs) is also accelerating, led by rapid developments in China and Southeast Asia. These trends, along with rising demand for connected cars with new digital capabilities, are driving innovation throughout the region's industry. "Asia Pacific is a key region in the development of new vehicle platforms and features," said Michael Gale, partner and regional leader, ISG Asia Pacific. "As regulatory and market pressures grow and change, manufacturers continue to advance both their products and their methodologies." Automotive manufacturers and service providers are increasing their investments in Asia Pacific to build up production and technology infrastructure for the new age of electric and software-defined vehicles, the report says. This includes investments in battery technologies, localized supply chains and public-private partnerships. Companies are transforming automotive engineering and production with digital advancements to increase their agility, accelerate time to market and respond more quickly to changing consumer demands, ISG says. By using digital twins to simulate products under development, manufacturers are eliminating the cost of some physical prototypes, while physical prototyping itself is becoming faster and less expensive with 3D printing. Some companies are moving toward the use of blockchain technology for trust and transparency throughout the development process, further reducing timelines. Automakers in Asia Pacific are increasingly focused on enhancing customer experience through digital features such as advanced driver assistance and AI-powered service recommendations, the report says. Vehicles are becoming defined by software more than by hardware, especially with over-the-air updates that allow manufacturers to significantly improve features over time. The emergence of software-defined vehicles is reshaping product design and development and helping to clear a path to new mobility models such as car-sharing and subscriptions. As vehicle platforms and development approaches evolve, service providers are gaining competencies to assist automakers from product inception through testing, refinement and manufacturing, ISG says. "Electrification, digitalization and new ownership models are changing nearly every aspect of the automotive business," said Shirish Madhukar Kulkarni, lead author of the report. "Service providers need to expand and strengthen their capabilities to help manufacturers in Asia Pacific succeed in this new environment." The report also examines other automotive and mobility trends in Asia Pacific, including the growing imperative for more sustainable operations and the evolution of automotive retail channels. For more insights into the challenges faced by automotive enterprises in Asia Pacific, along with ISG's advice for addressing them, see the ISG Provider Lens® Focal Points briefing here. The 2025 ISG Provider Lens® Automotive and Mobility Services and Solutions report for Asia Pacific evaluates the capabilities of 39 providers across five quadrants: Automotive Engineering and Manufacturing Services, Electric Vehicles and Mobility Services, Autonomous Systems and Software-defined Vehicles, Automotive Retail and Aftermarket Services and Technology Transformation and Consulting. The report names Accenture, Cognizant, HCLTech, IBM, Infosys, TCS, Tech Mahindra and Wipro as Leaders in all five quadrants. It names Capgemini and Deloitte as Leaders in four quadrants each and KPIT, LTTS and NTT DATA as Leaders in three quadrants each. Tata Elxsi and UST are named as Leaders in two quadrants each. Akkodis and FPT Software are named as Leaders in one quadrant each. In addition, FPT Software is named as a Rising Star — a company with a "promising portfolio" and "high future potential" by ISG's definition — in two quadrants. Akkodis, Cyient and DXC Technology are named as Rising Stars in one quadrant each. The 2025 ISG Provider Lens® Automotive and Mobility Services and Solutions report for Asia Pacific is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lens® Research The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage. 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, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments. View source version on Contacts Press Contacts: Laura Hupprich, ISG+1 203 517 Julianna Sheridan, Matter Communications for ISG+1 978-518-4520isg@ Sign in to access your portfolio

Asian Automakers Invest in Digital, Electrified Future
Asian Automakers Invest in Digital, Electrified Future

Business Wire

time6 days ago

  • Automotive
  • Business Wire

Asian Automakers Invest in Digital, Electrified Future

SYDNEY--(BUSINESS WIRE)--Automotive and mobility companies in Asia Pacific are developing advanced digital vehicle platforms and features to stay competitive amid rapid electrification and changing consumer expectations, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm. Asia Pacific is a key region in the development of new vehicle platforms and features. As regulatory and market pressures grow and change, manufacturers continue to advance both their products and their methodologies. The 2025 ISG Provider Lens ® Automotive and Mobility Services and Solutions report for Asia Pacific finds that the market for electric and hybrid vehicles in the region continues to grow, driven in part by government support, urbanization and environmental concerns. Interest in and development of autonomous vehicles (AVs) is also accelerating, led by rapid developments in China and Southeast Asia. These trends, along with rising demand for connected cars with new digital capabilities, are driving innovation throughout the region's industry. 'Asia Pacific is a key region in the development of new vehicle platforms and features,' said Michael Gale, partner and regional leader, ISG Asia Pacific. 'As regulatory and market pressures grow and change, manufacturers continue to advance both their products and their methodologies.' Automotive manufacturers and service providers are increasing their investments in Asia Pacific to build up production and technology infrastructure for the new age of electric and software-defined vehicles, the report says. This includes investments in battery technologies, localized supply chains and public-private partnerships. Companies are transforming automotive engineering and production with digital advancements to increase their agility, accelerate time to market and respond more quickly to changing consumer demands, ISG says. By using digital twins to simulate products under development, manufacturers are eliminating the cost of some physical prototypes, while physical prototyping itself is becoming faster and less expensive with 3D printing. Some companies are moving toward the use of blockchain technology for trust and transparency throughout the development process, further reducing timelines. Automakers in Asia Pacific are increasingly focused on enhancing customer experience through digital features such as advanced driver assistance and AI-powered service recommendations, the report says. Vehicles are becoming defined by software more than by hardware, especially with over-the-air updates that allow manufacturers to significantly improve features over time. The emergence of software-defined vehicles is reshaping product design and development and helping to clear a path to new mobility models such as car-sharing and subscriptions. As vehicle platforms and development approaches evolve, service providers are gaining competencies to assist automakers from product inception through testing, refinement and manufacturing, ISG says. 'Electrification, digitalization and new ownership models are changing nearly every aspect of the automotive business,' said Shirish Madhukar Kulkarni, lead author of the report. 'Service providers need to expand and strengthen their capabilities to help manufacturers in Asia Pacific succeed in this new environment.' The report also examines other automotive and mobility trends in Asia Pacific, including the growing imperative for more sustainable operations and the evolution of automotive retail channels. For more insights into the challenges faced by automotive enterprises in Asia Pacific, along with ISG's advice for addressing them, see the ISG Provider Lens ® Focal Points briefing here. The 2025 ISG Provider Lens ® Automotive and Mobility Services and Solutions report for Asia Pacific evaluates the capabilities of 39 providers across five quadrants: Automotive Engineering and Manufacturing Services, Electric Vehicles and Mobility Services, Autonomous Systems and Software-defined Vehicles, Automotive Retail and Aftermarket Services and Technology Transformation and Consulting. The report names Accenture, Cognizant, HCLTech, IBM, Infosys, TCS, Tech Mahindra and Wipro as Leaders in all five quadrants. It names Capgemini and Deloitte as Leaders in four quadrants each and KPIT, LTTS and NTT DATA as Leaders in three quadrants each. Tata Elxsi and UST are named as Leaders in two quadrants each. Akkodis and FPT Software are named as Leaders in one quadrant each. In addition, FPT Software is named as a Rising Star — a company with a 'promising portfolio' and 'high future potential' by ISG's definition — in two quadrants. Akkodis, Cyient and DXC Technology are named as Rising Stars in one quadrant each. The 2025 ISG Provider Lens ® Automotive and Mobility Services and Solutions report for Asia Pacific is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lens ® Research The ISG Provider Lens ® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage. 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, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

Asia Pacific's Demand for IT and Business Services Slows in Q2, ISG Index™ Shows
Asia Pacific's Demand for IT and Business Services Slows in Q2, ISG Index™ Shows

Business Wire

time16-07-2025

  • Business
  • Business Wire

Asia Pacific's Demand for IT and Business Services Slows in Q2, ISG Index™ Shows

SYDNEY--(BUSINESS WIRE)--Asia Pacific's spending on IT and business services slowed in the second quarter as enterprises remained cautious in the face of uncertain macro conditions, according to the latest state-of-the-industry report from Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm. Macroeconomic and geopolitical uncertainty is taking a toll on the Asia Pacific market at the moment. The only bright spot right now is AI, which has companies investing in cloud services for the massive computing power needed to run AI at scale. The Asia Pacific ISG Index™, which measures commercial outsourcing contracts with annual contract value (ACV) of US $5 million or more, shows second-quarter ACV for the combined market (both cloud-based XaaS and managed services) was down slightly (0.3 percent) versus the prior year, to US $4.7 billion. Sequentially, the market fell 12 percent compared with the first quarter. It was the first time the Asia Pacific market pulled back since the second quarter last year. Fueled by interest in AI, demand for cloud-based services remained robust, up 16 percent year on year, to US $3.9 billion, even as demand slowed 15 percent from the first quarter. Managed services, meanwhile, slumped 40 percent, to US $823 million, but rose 6 percent against the first quarter. Within the XaaS segment, infrastructure-as-a-service (IaaS) ACV advanced 17 percent, at US $3.4 billion, while software-as-a-service (SaaS) ACV grew 13 percent, to US $500 million. In managed services, IT outsourcing (ITO) ACV fell 46 percent, to US $539 billion, with even the largest and fastest-growing service area, application development and management (ADM), down more than 30 percent. Business process outsourcing (BPO) also had a weak quarter, down 34 percent, to US $133 million, with only customer engagement and facilities management services showing growth. Engineering, research and development (ER&D) services didn't fare much better, down 15 percent, to US $152 million. During the quarter, 69 managed services contracts were awarded, down 18 percent year on year. Among industries, the region's largest industry for sourcing—banking, financial services and insurance (BFSI)—was up 1.4 percent. Travel, transportation and leisure and retail both generated double-digit growth off smaller bases. All other sectors were down by double digits. Geographically, South Korea was the only market that grew, albeit off a small base. Australia-New Zealand was down 33 percent, India was down 16 percent and Japan was down 35 percent. 'Macroeconomic and geopolitical uncertainty is really taking a toll on the Asia Pacific market at the moment. The only bright spot right now is AI, which has companies investing in cloud services to take advantage of the massive computing power needed to run AI at scale,' said Michael Gale, partner and regional leader, ISG Asia Pacific. 'Given the quarter-over-quarter improvement we saw in managed services, we hope to see a turnaround in the overall market during the second half.' First-Half Results Asia Pacific's combined market ACV in the first half rose 4.3 percent versus the prior year, to US $10.1 billion. All the growth can be attributed to the XaaS segment, which rose 17 percent, to US $8.5 billion. Within XaaS, IaaS was up 17 percent, to US $7.4 billion, while SaaS rose 16 percent, to US $1.0 billion. Managed services, meanwhile, declined 34 percent, to US $1.6 billion. All its component pieces were down double digits, including ITO, down 31 percent, to US $1.1 billion; BPO, down 33 percent, to US $288 million, and ER&D down 51 percent, to US $175 million. The 126 managed services contracts awarded in the first half were down 16 percent from the prior year. Among industries, the largest sector for outsourcing, BFSI, was down 16 percent, while the second largest, manufacturing, was off 19 percent. Among geographic markets, only India managed growth in the first half, up 2.4 percent. 2025 Global Forecast For the full year, ISG is maintaining its forecast of 1.3 percent revenue growth for managed services, reflecting a stabilizing tariff environment but also continued weakness in discretionary spending. At the same time, ISG is raising its previous growth forecast for cloud-based XaaS by 300 basis points, to 21 percent, based on continuing strong demand for AI-driven transformation. About the ISG Index™ The ISG Index™ is recognized as the authoritative source for marketplace intelligence on the global technology and business services industry. For 91 consecutive quarters, it has detailed the latest industry data and trends for financial analysts, enterprise buyers, software and service providers, law firms, universities and the media. The 2Q25 Global ISG Index results were presented during a webcast on July 10. To view a replay of the webcast and download presentation slides, visit this webpage. 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, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

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