Changing Enterprise Expectations for BPO Amid AI Adoption
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Newsfilter
- Current BPO Landscape: ISG's latest report indicates that enterprise expectations for business process outsourcing (BPO) are shifting, with survey data revealing that BPO contract bookings remain below 2019 levels while IT outsourcing (ITO) has seen an uptick, highlighting an uneven recovery that impacts service providers' business strategies.
- Pressure for AI Transformation: Seventy percent of respondents expect BPO providers to deliver more innovation, yet only 40% anticipate an increase in outsourced staff and 29% expect internal staff growth, reflecting the urgent demand for AI transformation as enterprises pursue cost savings and efficiency, compelling providers to enhance service quality.
- Rise of Global Capability Centers: Ninety percent of respondents plan to expand the scope of work handled by global capability centers (GCCs) in the next 12 months, particularly in finance and customer service, indicating a trend where enterprises seek to insource operations to achieve traditional BPO benefits, further challenging the necessity of outsourcing services.
- Governance and AI Integration: While two-thirds of respondents expect BPO providers to lead in AI adoption, only 21% of enterprises claim to have the internal skills to govern AI-enabled BPO services, presenting an opportunity for providers to enhance client relationships through new control models and pricing methods based on enterprise outcomes.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy III?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on III
Wall Street analysts forecast III stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 4.160
Low
6.50
Averages
6.50
High
6.50
Current: 4.160
Low
6.50
Averages
6.50
High
6.50
About III
Information Services Group, Inc. is a global artificial intelligence (AI)-centered technology research and advisory firm. The Company specializes in digital transformation services, including sourcing advisory, cloud and data analytics; managed governance and risk services, network carrier services, technology strategy and operations design; change management, and market intelligence and technology research and analysis. The Company’s ISG Network and Software Advisory services and its software platforms, including ISG GovernX and ISG Tango. ISG GovernX includes real-time third-party risk management capabilities, including integrated data feeds and real-time alerts. ISG Tango sourcing platform is an AI-embedded, comprehensive solution that enables enterprises and public sector organizations to evaluate their business requirements and identify desired outcomes. Its AI Maturity Index, a data-driven assessment platform designed to benchmark workforce readiness for AI at scale.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ISG to Release Report on AI-Driven Healthcare Transformation Services
- Research Launch: Information Services Group (ISG) has initiated a study to evaluate service providers assisting U.S. healthcare payers and providers in adopting AI-driven digital transformation, with a comprehensive report set for release in October 2026, aimed at providing enterprise buyers insights to assess current vendor relationships.
- Market Demand: U.S. healthcare organizations are modernizing operations in response to rising costs, workforce shortages, and regulatory demands, with AI, automation, and data platforms expected to be central to transformation efforts, enhancing both business and care outcomes.
- Service Evaluation: The report will cover three main areas: Payer Transformation, Provider Transformation, and Healthcare Data & Intelligence Foundations, helping healthcare enterprises identify potential new partners and compare available services to enhance market competitiveness.
- Customer Experience Data: The 2026 ISG Provider Lens evaluations will feature expanded customer experience data capturing real-world enterprise feedback on specific services and solutions, ensuring the report's practicality and relevance.
See More
ISG to Release Manufacturing Industry Services Report
- Research Background: Information Services Group (ISG) has launched a study to evaluate service providers that assist manufacturers in modernizing engineering and adopting adaptive operations to tackle supply chain restructuring and operational complexities.
- Report Content: The study will culminate in a series of ISG Provider Lens® reports titled 'Manufacturing Industry Services and Solutions', scheduled for release in November 2026, covering services in engineering, R&D, physical AI, and smart factories.
- Market Demand: Manufacturers are investing in advanced engineering, digital twins, and industrial AI to enhance innovation and competitiveness, and ISG's research will aid enterprises in evaluating existing vendor relationships and identifying potential new partnerships.
- Global Perspective: The study will focus on the global manufacturing services market, particularly products and services available in Europe and North America, with ISG analysts responsible for report authorship to ensure comprehensive coverage of market needs and customer experience data.
See More
ISG AI Impact Summit Focuses on AI Value Creation
- Summit Theme and Goals: The 2026 ISG AI Impact Summit will take place on June 22-23 in Frankfurt, gathering executives from companies like State Street, Pfizer, and Siemens to share strategies for balancing innovation with human impact to build autonomous enterprises.
- Leadership and AI Collaboration: Anna Guenter, head of strategic AI activation at Merck KGaA, will deliver the opening keynote, discussing how leadership models must evolve as humans, intelligent systems, and autonomous workflows increasingly collaborate, highlighting adaptability's importance in future enterprises.
- Challenges in AI Business Cases: Executives from Pfizer and NTT DATA will participate in discussions analyzing why most AI business cases fail, providing step-by-step guidance on moving from perceived success to real enterprise results, aiming to help businesses leverage AI more effectively.
- Importance of Trust and Culture: Alice Mini from Hyundai Motor Europe will explore how successful AI adoption relies more on trust, accountability, decision-making, and culture than on technology, emphasizing the critical role of human factors in AI implementation.
See More
Changing Enterprise Expectations for BPO Amid AI Adoption
- Current BPO Landscape: ISG's latest report indicates that enterprise expectations for business process outsourcing (BPO) are shifting, with survey data revealing that BPO contract bookings remain below 2019 levels while IT outsourcing (ITO) has seen an uptick, highlighting an uneven recovery that impacts service providers' business strategies.
- Pressure for AI Transformation: Seventy percent of respondents expect BPO providers to deliver more innovation, yet only 40% anticipate an increase in outsourced staff and 29% expect internal staff growth, reflecting the urgent demand for AI transformation as enterprises pursue cost savings and efficiency, compelling providers to enhance service quality.
- Rise of Global Capability Centers: Ninety percent of respondents plan to expand the scope of work handled by global capability centers (GCCs) in the next 12 months, particularly in finance and customer service, indicating a trend where enterprises seek to insource operations to achieve traditional BPO benefits, further challenging the necessity of outsourcing services.
- Governance and AI Integration: While two-thirds of respondents expect BPO providers to lead in AI adoption, only 21% of enterprises claim to have the internal skills to govern AI-enabled BPO services, presenting an opportunity for providers to enhance client relationships through new control models and pricing methods based on enterprise outcomes.
See More
Surge in Demand for Product Information Management Solutions
- Growing Market Demand: According to ISG's research, by 2027, one-third of enterprises are expected to adopt Product Information Management (PIM) platforms to address the increasing complexity of product data and digital marketing needs, thereby enhancing data sharing and collaboration efficiency across supply chains.
- Platform Evaluation: The 2026 ISG Buyers Guides assessed 61 software providers across areas including PIM and Product Lifecycle Management (PLM), with Salesforce, Stibo Systems, and Akeneo named as Overall Leaders in the PIM category, highlighting the critical role these platforms play in improving operational efficiency.
- AI and Analytics Capabilities: With advancements in AI and analytics, PIM platforms are becoming more effective at maintaining data consistency and accuracy, and it is predicted that by 2028, one-fifth of organizations will integrate agentic AI to enhance responsiveness to customers and stakeholders, further driving business growth.
- Strategic Investment Recommendations: ISG advises enterprises to adopt a systematic approach to enhance information quality and governance when investing in PIM software, ensuring that existing systems meet both short- and long-term product information management objectives, thereby strengthening market competitiveness.
See More
ISG Launches Study on AI Services for Life Sciences
- Research Background: Information Services Group (ISG) has launched a study to evaluate providers that assist life sciences enterprises in enhancing research productivity and optimizing development pipelines through AI, with a comprehensive report expected in November 2026.
- Market Demand: As advances in generative AI and multimodal models progress, life sciences organizations are increasingly deploying AI in production to enable faster and more informed decision-making, addressing growing demands for governance, compliance, and cybersecurity.
- Service Evaluation: The report will cover two areas: AI Consulting and Transformation Services, and AI Platforms, Engineering and Deployment Services, helping enterprises assess AI readiness, define strategies, and establish governance frameworks to drive widespread AI adoption.
- Customer Feedback: The 2026 ISG Provider Lens evaluations will feature expanded customer experience data capturing real-world enterprise feedback on specific services and solutions, based on ISG's continuous research to help clients maximize the value of their technology investments.
See More
ISG to Release Report on AI-Driven Healthcare Transformation Services
- Research Launch: Information Services Group (ISG) has initiated a study to evaluate service providers assisting U.S. healthcare payers and providers in adopting AI-driven digital transformation, with a comprehensive report set for release in October 2026, aimed at providing enterprise buyers insights to assess current vendor relationships.
- Market Demand: U.S. healthcare organizations are modernizing operations in response to rising costs, workforce shortages, and regulatory demands, with AI, automation, and data platforms expected to be central to transformation efforts, enhancing both business and care outcomes.
- Service Evaluation: The report will cover three main areas: Payer Transformation, Provider Transformation, and Healthcare Data & Intelligence Foundations, helping healthcare enterprises identify potential new partners and compare available services to enhance market competitiveness.
- Customer Experience Data: The 2026 ISG Provider Lens evaluations will feature expanded customer experience data capturing real-world enterprise feedback on specific services and solutions, ensuring the report's practicality and relevance.
See More
ISG to Release Manufacturing Industry Services Report
- Research Background: Information Services Group (ISG) has launched a study to evaluate service providers that assist manufacturers in modernizing engineering and adopting adaptive operations to tackle supply chain restructuring and operational complexities.
- Report Content: The study will culminate in a series of ISG Provider Lens® reports titled 'Manufacturing Industry Services and Solutions', scheduled for release in November 2026, covering services in engineering, R&D, physical AI, and smart factories.
- Market Demand: Manufacturers are investing in advanced engineering, digital twins, and industrial AI to enhance innovation and competitiveness, and ISG's research will aid enterprises in evaluating existing vendor relationships and identifying potential new partnerships.
- Global Perspective: The study will focus on the global manufacturing services market, particularly products and services available in Europe and North America, with ISG analysts responsible for report authorship to ensure comprehensive coverage of market needs and customer experience data.
See More
ISG AI Impact Summit Focuses on AI Value Creation
- Summit Theme and Goals: The 2026 ISG AI Impact Summit will take place on June 22-23 in Frankfurt, gathering executives from companies like State Street, Pfizer, and Siemens to share strategies for balancing innovation with human impact to build autonomous enterprises.
- Leadership and AI Collaboration: Anna Guenter, head of strategic AI activation at Merck KGaA, will deliver the opening keynote, discussing how leadership models must evolve as humans, intelligent systems, and autonomous workflows increasingly collaborate, highlighting adaptability's importance in future enterprises.
- Challenges in AI Business Cases: Executives from Pfizer and NTT DATA will participate in discussions analyzing why most AI business cases fail, providing step-by-step guidance on moving from perceived success to real enterprise results, aiming to help businesses leverage AI more effectively.
- Importance of Trust and Culture: Alice Mini from Hyundai Motor Europe will explore how successful AI adoption relies more on trust, accountability, decision-making, and culture than on technology, emphasizing the critical role of human factors in AI implementation.
See More
Changing Enterprise Expectations for BPO Amid AI Adoption
- Current BPO Landscape: ISG's latest report indicates that enterprise expectations for business process outsourcing (BPO) are shifting, with survey data revealing that BPO contract bookings remain below 2019 levels while IT outsourcing (ITO) has seen an uptick, highlighting an uneven recovery that impacts service providers' business strategies.
- Pressure for AI Transformation: Seventy percent of respondents expect BPO providers to deliver more innovation, yet only 40% anticipate an increase in outsourced staff and 29% expect internal staff growth, reflecting the urgent demand for AI transformation as enterprises pursue cost savings and efficiency, compelling providers to enhance service quality.
- Rise of Global Capability Centers: Ninety percent of respondents plan to expand the scope of work handled by global capability centers (GCCs) in the next 12 months, particularly in finance and customer service, indicating a trend where enterprises seek to insource operations to achieve traditional BPO benefits, further challenging the necessity of outsourcing services.
- Governance and AI Integration: While two-thirds of respondents expect BPO providers to lead in AI adoption, only 21% of enterprises claim to have the internal skills to govern AI-enabled BPO services, presenting an opportunity for providers to enhance client relationships through new control models and pricing methods based on enterprise outcomes.
See More
Surge in Demand for Product Information Management Solutions
- Growing Market Demand: According to ISG's research, by 2027, one-third of enterprises are expected to adopt Product Information Management (PIM) platforms to address the increasing complexity of product data and digital marketing needs, thereby enhancing data sharing and collaboration efficiency across supply chains.
- Platform Evaluation: The 2026 ISG Buyers Guides assessed 61 software providers across areas including PIM and Product Lifecycle Management (PLM), with Salesforce, Stibo Systems, and Akeneo named as Overall Leaders in the PIM category, highlighting the critical role these platforms play in improving operational efficiency.
- AI and Analytics Capabilities: With advancements in AI and analytics, PIM platforms are becoming more effective at maintaining data consistency and accuracy, and it is predicted that by 2028, one-fifth of organizations will integrate agentic AI to enhance responsiveness to customers and stakeholders, further driving business growth.
- Strategic Investment Recommendations: ISG advises enterprises to adopt a systematic approach to enhance information quality and governance when investing in PIM software, ensuring that existing systems meet both short- and long-term product information management objectives, thereby strengthening market competitiveness.
See More
ISG Launches Study on AI Services for Life Sciences
- Research Background: Information Services Group (ISG) has launched a study to evaluate providers that assist life sciences enterprises in enhancing research productivity and optimizing development pipelines through AI, with a comprehensive report expected in November 2026.
- Market Demand: As advances in generative AI and multimodal models progress, life sciences organizations are increasingly deploying AI in production to enable faster and more informed decision-making, addressing growing demands for governance, compliance, and cybersecurity.
- Service Evaluation: The report will cover two areas: AI Consulting and Transformation Services, and AI Platforms, Engineering and Deployment Services, helping enterprises assess AI readiness, define strategies, and establish governance frameworks to drive widespread AI adoption.
- Customer Feedback: The 2026 ISG Provider Lens evaluations will feature expanded customer experience data capturing real-world enterprise feedback on specific services and solutions, based on ISG's continuous research to help clients maximize the value of their technology investments.
See More
