Information Services Group Sees AI Cloud Demand Fuel Record Tech Spending

MarketBeat

Fri, July 10, 2026 astatine 11:02 AM CDT 7 min read

Key Points

• Interested successful Information Services Group, Inc.? Here are 5 stocks we similar better.

• ISG reported grounds tech spending successful the 2nd quarter, with combined managed services and as-a-service ACV hitting $42.3 billion, up 43% twelvemonth implicit twelvemonth and the archetypal clip the marketplace topped $40 cardinal successful a quarter.

• AI-driven unreality and infrastructure request led the surge, portion accepted managed services stayed successful low-single-digit growth. ISG raised its full-year as-a-service maturation forecast to 30% but kept managed services maturation guidance astatine 2.1%.

• Regional and conception show was uneven: EMEA and Asia Pacific improved, the Americas weakened, and concern process outsourcing rebounded sharply portion IT outsourcing and immoderate application-development enactment remained nether pressure.

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Information Services Group (NASDAQ:III) said exertion request continued to grow sharply successful the 2nd quarter, driven chiefly by cloud-based bundle and infrastructure services tied to artificial intelligence, portion accepted managed services remained successful low-single-digit maturation mode.

On its 95th consecutive ISG Index call, the advisory steadfast said the combined marketplace for managed services and "as-a-service" offerings reached $42.3 cardinal successful yearly declaration value, oregon ACV, successful the 2nd quarter, up 43% from a twelvemonth earlier. Stanton Jones, Distinguished Analyst astatine ISG, said it was the archetypal clip the combined marketplace crossed $40 cardinal successful a 4th and represented the highest maturation complaint ISG has recorded.

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For the archetypal fractional of the year, combined marketplace ACV reached $81.3 billion, up 35% year-over-year, compared with 18% maturation astatine the aforesaid constituent successful 2025.

As-a-Service Growth Outpaces Managed Services

Jones said as-a-service continued to relationship for astir of the market's growth, reaching $31.5 cardinal successful ACV during the quarter. First-half as-a-service ACV roseate 53%, accelerating from 28% maturation astatine the aforesaid constituent past year.

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Managed services showed a much muted picture. ACV totaled $10.9 cardinal successful the quarter, up 2.7% year-over-year. First-half managed services ACV besides roseate 2.7%, down from 3.9% maturation successful the archetypal fractional of 2025.

"Technology request is precise overmuch inactive expanding, but astir of that maturation is happening successful infrastructure and software, portion managed services remains successful its accepted debased single-digit maturation mode," Jones said.