ISG Launches Research on AI Service Providers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 24 2026
0mins
Should l Buy III?
Source: Newsfilter
- Research Launch: Information Services Group (ISG) has initiated a study to evaluate service providers that support large-scale AI digital transformation, with comprehensive reports expected in December 2026 to assist enterprises in optimizing vendor relationships and exploring new engagement opportunities.
- Growing Market Demand: As enterprises integrate AI into core workflows, the demand for analytics and AI services is surging, particularly with the adoption of advanced AI capabilities like computer vision and knowledge graphs, prompting service providers to expand reusable frameworks and industry-specific solutions.
- Global Coverage: The study will cover the global advanced analytics and AI services market in Brazil, Europe, and the U.S., with ISG analysts authoring reports that provide assessments of products and services available in different regions, helping enterprises understand market dynamics.
- Customer Experience Data: The 2026 ISG Provider Lens evaluations will feature expanded customer experience data based on ISG's continuous CX research, measuring actual enterprise experiences with specific service providers to enhance service quality and customer satisfaction.
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: 4.140
Low
6.50
Averages
6.50
High
6.50
Current: 4.140
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.
German Enterprises Integrate Salesforce for AI Execution
- AI Execution Environment Redesign: According to ISG's report, German enterprises are redesigning their Salesforce environments to serve as a critical operational layer for generative AI and agent-based work, thereby enhancing their capabilities for cross-functional AI execution to meet growing market demands.
- Compliance and Trust Design: In regulated sectors, there is an increasing emphasis on system integration and compliance requirements, driving demand for partners that can provide trust design to ensure the compliance and effectiveness of AI deployments.
- Expansion of Agent Workflows: German enterprises are looking to extend agent-based workflows across sales, service, and IT rather than confining them to a single cloud or use case, leading to a rise in demand for cross-platform integration and process design services.
- Accountability for AI Agents: With the introduction of Salesforce Agentic Work Units, organizations are focusing on governance and accountability for AI agents, which is likely to increase demand for providers that can ensure long-term operational discipline and value creation.
See More
Enterprise AI Becomes Core Operational Layer in Healthcare
- AI Integration Trend: The ISG report indicates that healthcare organizations are embedding advanced AI capabilities into core operations to enhance efficiency, reduce administrative burdens, and improve care delivery, highlighting AI's strategic significance in the healthcare sector.
- Investment Focus Areas: Enterprises are concentrating AI investments on high-friction processes such as clinical documentation, prior authorization, and revenue cycle management, significantly reducing cycle times and improving accuracy through automation, thereby enhancing operational efficiency.
- Strengthening Data Foundations: ISG finds that leading enterprises treat data as a strategic asset, investing in interoperability, standardized data models, and improved data quality to support consistent and scalable AI performance while reducing fragmentation across systems.
- Evolution of AI Applications: The adoption of AI is progressing from assistive tools to more autonomous, workflow-oriented applications capable of executing multi-step processes within defined parameters, enhancing decision-making and action coordination in healthcare services, thereby providing enterprises with a long-term competitive edge.
See More
Information Services Group Q1 2026 Earnings Highlights
- Growing AI Demand: Information Services Group reported $21 million in AI-related revenue for Q1 2026, which constitutes about one-third of total firm revenue, indicating accelerating demand for AI that is expected to drive future revenue growth.
- Record Contract Win: The company signed its largest-ever multiyear agreement valued at up to $17 million, which is expected to support the client for up to eight years, significantly enhancing the company's revenue base and market position.
- Strong Financial Performance: Q1 revenue reached $61.2 million, up 3% year-over-year, with Americas revenue slightly down 2.9% while Europe saw a 25.3% increase, highlighting differentiated regional performance that bolsters overall profitability.
- Cautious Future Outlook: Management set Q2 revenue targets between $62.5 million and $63.5 million, and despite facing an uncertain macro environment, they emphasized the ongoing growth in AI and governance demand, reflecting a cautiously optimistic view for the future.
See More
ISG Launches Digital Sustainability Research Report
- Research Launch: Information Services Group (ISG) has initiated a study to evaluate providers delivering digital solutions aimed at helping enterprises achieve sustainability goals, with results expected in October 2026, highlighting the increasing importance of sustainability in corporate strategy.
- Market Demand: As enterprises face pressures from regulatory changes and stakeholder expectations, ISG notes a rising demand for providers that can combine sustainability with digital, data, and AI capabilities, emphasizing the need for effective execution of sustainability strategies.
- Scope of Services: The research will cover five key areas, including Strategy and Enablement Services, Asset and Value Chain Solutions, IT Solutions, Data Transformation Services, and Data Management Solutions, assisting enterprises in optimizing resource efficiency and lifecycle performance.
- Global Perspective: The study will focus on the global digital sustainability market, analyzing products and services available in Europe, the U.S., and globally, ensuring enterprises gain comprehensive market insights and vendor evaluations.
See More
Trends in Aerospace and Defense Industry Modernization
- Investment Surge: The ISG report indicates that global military spending has significantly increased over the past decade and is expected to continue rising until 2030, driving expansion in the aerospace and defense sector, particularly in Europe and the Middle East due to increased spending commitments by NATO member countries.
- Demand for Modernization: As international conflicts escalate, countries are accelerating the deployment of unmanned systems and hypersonic weapons, with governments partnering with midsize providers to address shortages of raw materials and skilled labor, thereby enhancing their defense modernization capabilities.
- Aviation Market Recovery: With over 42,000 new aircraft deliveries expected by 2043, the commercial aviation sector is rebounding despite production constraints from labor and material shortages, leading to increased demand for sustainable fuels and aftermarket services based on predictive maintenance, driving industry innovation.
- Emerging Technology Adoption: The aerospace and defense industry is integrating emerging technologies such as autonomous systems and AI, with specialized companies supplying modular and upgradable technologies to large enterprises to ensure mission readiness while also investing in sustainability through the development of low-emission propulsion systems.
See More
Information Services Reports Strong Q1 Earnings and Strategic Contracts
- Earnings Beat: Information Services Group, Inc. (III) reported a Q1 non-GAAP EPS of $0.09, exceeding expectations by $0.02, indicating sustained profitability improvements that bolster investor confidence.
- Revenue Growth: The company achieved Q1 revenue of $61.2 million, surpassing market expectations by $0.4 million, reflecting strong competitive positioning and robust customer demand recovery.
- Strategic Contract Signing: III signed a historic multiyear contract valued at up to $17 million to support AI-driven reinvention for a top global manufacturer, signaling significant future revenue growth potential.
- Dividend and Guidance: The company declared a second-quarter dividend of $0.045 per share and set revenue guidance between $62.5 million and $63.5 million, with adjusted EBITDA projected between $8.0 million and $9.0 million, demonstrating confidence in future performance.
See More
German Enterprises Integrate Salesforce for AI Execution
- AI Execution Environment Redesign: According to ISG's report, German enterprises are redesigning their Salesforce environments to serve as a critical operational layer for generative AI and agent-based work, thereby enhancing their capabilities for cross-functional AI execution to meet growing market demands.
- Compliance and Trust Design: In regulated sectors, there is an increasing emphasis on system integration and compliance requirements, driving demand for partners that can provide trust design to ensure the compliance and effectiveness of AI deployments.
- Expansion of Agent Workflows: German enterprises are looking to extend agent-based workflows across sales, service, and IT rather than confining them to a single cloud or use case, leading to a rise in demand for cross-platform integration and process design services.
- Accountability for AI Agents: With the introduction of Salesforce Agentic Work Units, organizations are focusing on governance and accountability for AI agents, which is likely to increase demand for providers that can ensure long-term operational discipline and value creation.
See More
Enterprise AI Becomes Core Operational Layer in Healthcare
- AI Integration Trend: The ISG report indicates that healthcare organizations are embedding advanced AI capabilities into core operations to enhance efficiency, reduce administrative burdens, and improve care delivery, highlighting AI's strategic significance in the healthcare sector.
- Investment Focus Areas: Enterprises are concentrating AI investments on high-friction processes such as clinical documentation, prior authorization, and revenue cycle management, significantly reducing cycle times and improving accuracy through automation, thereby enhancing operational efficiency.
- Strengthening Data Foundations: ISG finds that leading enterprises treat data as a strategic asset, investing in interoperability, standardized data models, and improved data quality to support consistent and scalable AI performance while reducing fragmentation across systems.
- Evolution of AI Applications: The adoption of AI is progressing from assistive tools to more autonomous, workflow-oriented applications capable of executing multi-step processes within defined parameters, enhancing decision-making and action coordination in healthcare services, thereby providing enterprises with a long-term competitive edge.
See More
Information Services Group Q1 2026 Earnings Highlights
- Growing AI Demand: Information Services Group reported $21 million in AI-related revenue for Q1 2026, which constitutes about one-third of total firm revenue, indicating accelerating demand for AI that is expected to drive future revenue growth.
- Record Contract Win: The company signed its largest-ever multiyear agreement valued at up to $17 million, which is expected to support the client for up to eight years, significantly enhancing the company's revenue base and market position.
- Strong Financial Performance: Q1 revenue reached $61.2 million, up 3% year-over-year, with Americas revenue slightly down 2.9% while Europe saw a 25.3% increase, highlighting differentiated regional performance that bolsters overall profitability.
- Cautious Future Outlook: Management set Q2 revenue targets between $62.5 million and $63.5 million, and despite facing an uncertain macro environment, they emphasized the ongoing growth in AI and governance demand, reflecting a cautiously optimistic view for the future.
See More
ISG Launches Digital Sustainability Research Report
- Research Launch: Information Services Group (ISG) has initiated a study to evaluate providers delivering digital solutions aimed at helping enterprises achieve sustainability goals, with results expected in October 2026, highlighting the increasing importance of sustainability in corporate strategy.
- Market Demand: As enterprises face pressures from regulatory changes and stakeholder expectations, ISG notes a rising demand for providers that can combine sustainability with digital, data, and AI capabilities, emphasizing the need for effective execution of sustainability strategies.
- Scope of Services: The research will cover five key areas, including Strategy and Enablement Services, Asset and Value Chain Solutions, IT Solutions, Data Transformation Services, and Data Management Solutions, assisting enterprises in optimizing resource efficiency and lifecycle performance.
- Global Perspective: The study will focus on the global digital sustainability market, analyzing products and services available in Europe, the U.S., and globally, ensuring enterprises gain comprehensive market insights and vendor evaluations.
See More
Trends in Aerospace and Defense Industry Modernization
- Investment Surge: The ISG report indicates that global military spending has significantly increased over the past decade and is expected to continue rising until 2030, driving expansion in the aerospace and defense sector, particularly in Europe and the Middle East due to increased spending commitments by NATO member countries.
- Demand for Modernization: As international conflicts escalate, countries are accelerating the deployment of unmanned systems and hypersonic weapons, with governments partnering with midsize providers to address shortages of raw materials and skilled labor, thereby enhancing their defense modernization capabilities.
- Aviation Market Recovery: With over 42,000 new aircraft deliveries expected by 2043, the commercial aviation sector is rebounding despite production constraints from labor and material shortages, leading to increased demand for sustainable fuels and aftermarket services based on predictive maintenance, driving industry innovation.
- Emerging Technology Adoption: The aerospace and defense industry is integrating emerging technologies such as autonomous systems and AI, with specialized companies supplying modular and upgradable technologies to large enterprises to ensure mission readiness while also investing in sustainability through the development of low-emission propulsion systems.
See More
Information Services Reports Strong Q1 Earnings and Strategic Contracts
- Earnings Beat: Information Services Group, Inc. (III) reported a Q1 non-GAAP EPS of $0.09, exceeding expectations by $0.02, indicating sustained profitability improvements that bolster investor confidence.
- Revenue Growth: The company achieved Q1 revenue of $61.2 million, surpassing market expectations by $0.4 million, reflecting strong competitive positioning and robust customer demand recovery.
- Strategic Contract Signing: III signed a historic multiyear contract valued at up to $17 million to support AI-driven reinvention for a top global manufacturer, signaling significant future revenue growth potential.
- Dividend and Guidance: The company declared a second-quarter dividend of $0.045 per share and set revenue guidance between $62.5 million and $63.5 million, with adjusted EBITDA projected between $8.0 million and $9.0 million, demonstrating confidence in future performance.
See More
