{"success":true,"data":{"pressRelease":{"id":"87837","rtpr_id":"nBw3K7q0ra","ticker":"III","exchange":"NASDAQ","all_tickers":["III"],"title":"Driven by AI, Americas’ Tech Services Demand Accelerates in Q2 to New High: ISG Index™","author":"Business Wire","published_at":"2026-07-14T13:00:00.775Z","article_body":"Driven by AI, Americas’ Tech Services Demand Accelerates in Q2 to New High:\nISG Index™\n\nCombined market up 39 percent, fastest growth in four years\n\nDemand for cloud infrastructure services soars 86 percent; managed services\ndown\n\nDemand for technology services in the Americas hit a new high in the second\nquarter, accelerated by the region’s insatiable appetite for AI, according\nto the latest state-of-the-industry report from Information Services Group\n(ISG\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.isg-one.com&esheet=54569420&newsitemid=20260714306199&lan=en-US&anchor=ISG&index=1&md5=8dae77b265e92c0fc571bbfc12dd711d)\n) (Nasdaq: III\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.nasdaq.com%2Fmarket-activity%2Fstocks%2Fiii&esheet=54569420&newsitemid=20260714306199&lan=en-US&anchor=III&index=2&md5=8c2a973f9e9cee981d344dbb35419658)\n), a global AI-centered technology research and advisory firm.\n\nThe Americas ISG Index™, which measures commercial outsourcing contracts\nwith annual contract value (ACV) of $5 million or more, shows second-quarter\nACV for the combined market—including both cloud-based as-a-service (XaaS)\nand managed services—reached a record $21.8 billion, up 39 percent, the\nregion’s highest growth rate since the first quarter of 2022. The latest\nquarter was the region’s seventh consecutive quarter of double-digit growth,\naveraging 28 percent in that span.\n\nDemand for the hyperscaler services needed to run AI models accounted for a\nsubstantial portion of the region’s growth in the second quarter. The ACV of\nsuch infrastructure services (IaaS), offered by providers like AWS, Microsoft\nAzure, Google Cloud and Oracle Cloud, skyrocketed 86 percent, to a record\n$13.2 billion, in the quarter. Software-as-service (SaaS), also fueled by AI,\nadvanced 23 percent, to $3.4 billion. Together, these two XaaS offerings\ngenerated ACV of $16.6 billion, up 69 percent, the highest growth rate ever\nfor the XaaS segment, eclipsing the previous high set in the third quarter of\n2015. XaaS is now on nine-quarter streak of double-digit growth, averaging 38\npercent a quarter during that time.\n\nManaged services, meanwhile, saw its ACV decline 12 percent versus the prior\nyear, to $5.2 billion. Within managed services, IT outsourcing (ITO) was down\n23 percent, to $3.6 billion, led by a decline in application development and\nmaintenance (ADM) services, as AI is increasingly being used to handle human\ntasks. Business process outsourcing (BPO), however, climbed 37 percent, to\n$1.3 billion, as enterprises sought to leverage AI to lower costs in such\nareas as customer engagement, finance and accounting and supply chain\nmanagement. Spending on engineering services, primarily software engineering\nto integrate AI, rose 9 percent, to $326 million.\n\n“Demand for all things AI continues to fuel extraordinary growth in the\nAmericas market,” said Todd Lavieri, ISG vice chairman and president of ISG\nAmericas and Asia Pacific. “Traditional IT outsourcing, particularly for ADM\nservices, however, declined in the second quarter, partially offset by growing\ndemand for BPO, as enterprises sought AI-powered back-office solutions to\noptimize costs and generate funds for AI investments.”\n\nDuring the quarter, a total of 377 managed services contracts were awarded,\ndown 4 percent from the prior year. Among them were four mega-deals (contracts\nwith annual value of $100 million or more), compared to five in the prior\nyear, with the ACV of those four mega-deals down 20 percent from last year’s\nsecond quarter.\n\nBy industry, only two major sectors posted year-over-year growth in managed\nservices: consumer packaged goods (CPG), which climbed 44 percent, and\nbanking, financial services and insurance (BFSI), which rose slightly, up 1.3\npercent. BFSI, the region’s largest industry for outsourcing, has trended\npositive in seven of the last eight quarters. Manufacturing, meanwhile, was\ndown 18 percent and healthcare was down 20 percent for the quarter.\n\nFirst-Half Results\n\nThe Americas’ combined market climbed 36 percent in the first half, to a\nrecord $42.0 billion. XaaS soared 61 percent, to a record $31.1 billion, while\nmanaged services was down 6 percent, to $10.9 billion, the first time since\n2019 the region saw this market decline in the first half. XaaS represented 74\npercent of the combined market in the first half, up sharply from 62.5 percent\na year ago.\n\nWithin XaaS, IaaS jumped 82 percent, to $24.6 billion, while SaaS advanced 13\npercent, to $6.4 billion. On the managed services side, ITO was down 11\npercent, to $8.1 billion; BPO was up 30 percent, to $2.3 billion, and\nengineering services slid 29 percent, to $516 million.\n\nA total of 771 managed services contracts were awarded in the first half, down\n3 percent, including six mega-deals, compared with eight in the first half of\n2025, as mega-deal ACV dropped 15 percent.\n\n2026 Global Forecast\n\nFor the full year, ISG said it is maintaining its global forecast of 2.1\npercent revenue growth for managed services. At the same time, ISG is raising\nits previous growth forecast for cloud-based XaaS by 500 basis points, to 30\npercent, reflecting continuing strong demand for AI infrastructure and\nsoftware services.\n\nAbout the ISG Index™\n\nThe ISG Index™ is recognized as the authoritative source for marketplace\nintelligence on the global technology and business services industry. For 95\nconsecutive quarters, it has detailed the latest industry data and trends for\nfinancial analysts, enterprise buyers, software and service providers, law\nfirms, universities and the media.\n\nThe 2Q26 Global ISG Index results were presented during a webcast on July 9.\nTo view a replay of the webcast and download presentation slides, visit this\nwebpage\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fisg-one.com%2Fresearch%2Fisg-index&esheet=54569420&newsitemid=20260714306199&lan=en-US&anchor=webpage&index=3&md5=edcab9568d9f3443e22912775ef77c15)\n.\n\nAbout ISG\n\nISG\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.isg-one.com%2F&esheet=54569420&newsitemid=20260714306199&lan=en-US&anchor=ISG&index=4&md5=a15c78641cbd6eca204d7496c7e237a8)\n(Nasdaq: III\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.nasdaq.com%2Fmarket-activity%2Fstocks%2Fiii&esheet=54569420&newsitemid=20260714306199&lan=en-US&anchor=III&index=5&md5=74019ce4d5c42912c62f021c24d84dd7)\n) is a global AI-centered technology research and advisory firm. A trusted\npartner to more than 900 clients, including 75 of the world’s top 100\nenterprises, ISG is a long-time leader in technology and business services\nthat is now at the forefront of leveraging AI to help organizations achieve\noperational excellence and faster growth. The firm, founded in 2006, is known\nfor its proprietary market data and research, in-depth knowledge and\ngovernance of provider ecosystems, and the expertise of its 1,500\nprofessionals worldwide working together to help clients maximize the value of\ntheir technology investments.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260714306199/en/\n(https://www.businesswire.com/news/home/20260714306199/en/)\n\nPress Contacts:\n\nWill Thoretz, ISG\n\n+1 203 517 3119\n\nwill.thoretz@isg-one.com (mailto:will.thoretz@isg-one.com)\n\nErik Arvidson, Matter Communications for ISG\n\n+1 978 518 4542\n\nisg@matternow.com (mailto:isg@matternow.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw3K7q0ra","title":"Driven by AI, Americas’ Tech Services Demand Accelerates in Q2 to New High: ISG Index™","author":"Business Wire","ticker":"III","created":"2026-07-14T13:00:00.775Z","tickers":["III"],"exchange":"NASDAQ","article_body":"Driven by AI, Americas’ Tech Services Demand Accelerates in Q2 to New High:\nISG Index™\n\nCombined market up 39 percent, fastest growth in four years\n\nDemand for cloud infrastructure services soars 86 percent; managed services\ndown\n\nDemand for technology services in the Americas hit a new high in the second\nquarter, accelerated by the region’s insatiable appetite for AI, according\nto the latest state-of-the-industry report from Information Services Group\n(ISG\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.isg-one.com&esheet=54569420&newsitemid=20260714306199&lan=en-US&anchor=ISG&index=1&md5=8dae77b265e92c0fc571bbfc12dd711d)\n) (Nasdaq: III\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.nasdaq.com%2Fmarket-activity%2Fstocks%2Fiii&esheet=54569420&newsitemid=20260714306199&lan=en-US&anchor=III&index=2&md5=8c2a973f9e9cee981d344dbb35419658)\n), a global AI-centered technology research and advisory firm.\n\nThe Americas ISG Index™, which measures commercial outsourcing contracts\nwith annual contract value (ACV) of $5 million or more, shows second-quarter\nACV for the combined market—including both cloud-based as-a-service (XaaS)\nand managed services—reached a record $21.8 billion, up 39 percent, the\nregion’s highest growth rate since the first quarter of 2022. The latest\nquarter was the region’s seventh consecutive quarter of double-digit growth,\naveraging 28 percent in that span.\n\nDemand for the hyperscaler services needed to run AI models accounted for a\nsubstantial portion of the region’s growth in the second quarter. The ACV of\nsuch infrastructure services (IaaS), offered by providers like AWS, Microsoft\nAzure, Google Cloud and Oracle Cloud, skyrocketed 86 percent, to a record\n$13.2 billion, in the quarter. Software-as-service (SaaS), also fueled by AI,\nadvanced 23 percent, to $3.4 billion. Together, these two XaaS offerings\ngenerated ACV of $16.6 billion, up 69 percent, the highest growth rate ever\nfor the XaaS segment, eclipsing the previous high set in the third quarter of\n2015. XaaS is now on nine-quarter streak of double-digit growth, averaging 38\npercent a quarter during that time.\n\nManaged services, meanwhile, saw its ACV decline 12 percent versus the prior\nyear, to $5.2 billion. Within managed services, IT outsourcing (ITO) was down\n23 percent, to $3.6 billion, led by a decline in application development and\nmaintenance (ADM) services, as AI is increasingly being used to handle human\ntasks. Business process outsourcing (BPO), however, climbed 37 percent, to\n$1.3 billion, as enterprises sought to leverage AI to lower costs in such\nareas as customer engagement, finance and accounting and supply chain\nmanagement. Spending on engineering services, primarily software engineering\nto integrate AI, rose 9 percent, to $326 million.\n\n“Demand for all things AI continues to fuel extraordinary growth in the\nAmericas market,” said Todd Lavieri, ISG vice chairman and president of ISG\nAmericas and Asia Pacific. “Traditional IT outsourcing, particularly for ADM\nservices, however, declined in the second quarter, partially offset by growing\ndemand for BPO, as enterprises sought AI-powered back-office solutions to\noptimize costs and generate funds for AI investments.”\n\nDuring the quarter, a total of 377 managed services contracts were awarded,\ndown 4 percent from the prior year. Among them were four mega-deals (contracts\nwith annual value of $100 million or more), compared to five in the prior\nyear, with the ACV of those four mega-deals down 20 percent from last year’s\nsecond quarter.\n\nBy industry, only two major sectors posted year-over-year growth in managed\nservices: consumer packaged goods (CPG), which climbed 44 percent, and\nbanking, financial services and insurance (BFSI), which rose slightly, up 1.3\npercent. BFSI, the region’s largest industry for outsourcing, has trended\npositive in seven of the last eight quarters. Manufacturing, meanwhile, was\ndown 18 percent and healthcare was down 20 percent for the quarter.\n\nFirst-Half Results\n\nThe Americas’ combined market climbed 36 percent in the first half, to a\nrecord $42.0 billion. XaaS soared 61 percent, to a record $31.1 billion, while\nmanaged services was down 6 percent, to $10.9 billion, the first time since\n2019 the region saw this market decline in the first half. XaaS represented 74\npercent of the combined market in the first half, up sharply from 62.5 percent\na year ago.\n\nWithin XaaS, IaaS jumped 82 percent, to $24.6 billion, while SaaS advanced 13\npercent, to $6.4 billion. On the managed services side, ITO was down 11\npercent, to $8.1 billion; BPO was up 30 percent, to $2.3 billion, and\nengineering services slid 29 percent, to $516 million.\n\nA total of 771 managed services contracts were awarded in the first half, down\n3 percent, including six mega-deals, compared with eight in the first half of\n2025, as mega-deal ACV dropped 15 percent.\n\n2026 Global Forecast\n\nFor the full year, ISG said it is maintaining its global forecast of 2.1\npercent revenue growth for managed services. At the same time, ISG is raising\nits previous growth forecast for cloud-based XaaS by 500 basis points, to 30\npercent, reflecting continuing strong demand for AI infrastructure and\nsoftware services.\n\nAbout the ISG Index™\n\nThe ISG Index™ is recognized as the authoritative source for marketplace\nintelligence on the global technology and business services industry. For 95\nconsecutive quarters, it has detailed the latest industry data and trends for\nfinancial analysts, enterprise buyers, software and service providers, law\nfirms, universities and the media.\n\nThe 2Q26 Global ISG Index results were presented during a webcast on July 9.\nTo view a replay of the webcast and download presentation slides, visit this\nwebpage\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fisg-one.com%2Fresearch%2Fisg-index&esheet=54569420&newsitemid=20260714306199&lan=en-US&anchor=webpage&index=3&md5=edcab9568d9f3443e22912775ef77c15)\n.\n\nAbout ISG\n\nISG\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.isg-one.com%2F&esheet=54569420&newsitemid=20260714306199&lan=en-US&anchor=ISG&index=4&md5=a15c78641cbd6eca204d7496c7e237a8)\n(Nasdaq: III\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.nasdaq.com%2Fmarket-activity%2Fstocks%2Fiii&esheet=54569420&newsitemid=20260714306199&lan=en-US&anchor=III&index=5&md5=74019ce4d5c42912c62f021c24d84dd7)\n) is a global AI-centered technology research and advisory firm. A trusted\npartner to more than 900 clients, including 75 of the world’s top 100\nenterprises, ISG is a long-time leader in technology and business services\nthat is now at the forefront of leveraging AI to help organizations achieve\noperational excellence and faster growth. The firm, founded in 2006, is known\nfor its proprietary market data and research, in-depth knowledge and\ngovernance of provider ecosystems, and the expertise of its 1,500\nprofessionals worldwide working together to help clients maximize the value of\ntheir technology investments.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260714306199/en/\n(https://www.businesswire.com/news/home/20260714306199/en/)\n\nPress Contacts:\n\nWill Thoretz, ISG\n\n+1 203 517 3119\n\nwill.thoretz@isg-one.com (mailto:will.thoretz@isg-one.com)\n\nErik Arvidson, Matter Communications for ISG\n\n+1 978 518 4542\n\nisg@matternow.com (mailto:isg@matternow.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-07-14T13:00:00.907994254Z","server_sent_at_ms":1784034000907},"received_at":"2026-07-14T13:00:00.959Z","source_url":"https://www.businesswire.com/news/home/20260714306199/en/"},"analysis":{"id":"76890","press_release_id":"87837","analysis_json":{"industry":{"label":"IT Consulting & Other Services","sector":"Information Technology"},"redFlags":[],"eventType":"operations_update","narrative":"The ISG Index™ reports that demand for technology services in the Americas reached a record high in Q2, with combined market ACV rising 39% year-over-year to $21.8 billion.\n\nGrowth was driven by an 86% surge in cloud infrastructure services (IaaS) to $13.2 billion, fueled by AI demand, while managed services ACV declined 12% to $5.2 billion.\n\nFor the full year, ISG maintained its global managed services forecast at 2.1% growth and raised its XaaS growth forecast by 500 basis points to 30%.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Record Americas tech services demand in Q2 driven by AI infrastructure; ISG raises XaaS growth forecast to 30%."},"keyFigures":{"customDimensions":{"americas_q2_iaas_acv":"$13.2 billion","americas_q2_xaas_acv":"$16.6 billion","americas_q2_iaas_growth":"86%","americas_q2_xaas_growth":"69%","americas_h1_combined_acv":"$42.0 billion","americas_q2_combined_acv":"$21.8 billion","americas_h1_combined_growth":"36%","americas_q2_combined_growth":"39%","global_forecast_xaas_growth":"30%","americas_q2_managed_services_acv":"$5.2 billion","americas_q2_managed_services_growth":"-12%","global_forecast_managed_services_growth":"2.1%"}},"quotedText":"Demand for all things AI continues to fuel extraordinary growth in the Americas market","namedEntities":{"people":[{"name":"Todd Lavieri","role":"Vice Chairman and President of ISG Americas and Asia Pacific"}],"products":["ISG Index™"],"companies":[{"name":"Information Services 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billion","context":"Americas first-half XaaS ACV"},{"amount":"$10.9 billion","context":"Americas first-half managed services ACV"},{"amount":"$24.6 billion","context":"Americas first-half IaaS ACV"},{"amount":"$6.4 billion","context":"Americas first-half SaaS ACV"},{"amount":"$8.1 billion","context":"Americas first-half ITO ACV"},{"amount":"$2.3 billion","context":"Americas first-half BPO ACV"},{"amount":"$516 million","context":"Americas first-half engineering services ACV"}]},"materialImpact":{"score":3,"reasoning":"Publication of the quarterly ISG Index reveals record market growth in the Americas (39% YoY) and a raised global XaaS forecast, reinforcing the strength of the AI sector and ISG's position as a leading authority on tech services trends."},"tickerRelevance":{"others":[],"primary":"III"},"globalImportance":35,"audienceRelevance":45,"eventTypeSecondary":[],"importanceComponents":{"eventGravity":"Major market data release","sectorWeight":"High (Tech/AI)","dataAuthoritativeness":"High (ISG Index)"}},"event_type":"operations_update","event_type_secondary":null,"sentiment":"bullish","material_impact_score":3,"narrative":"The ISG Index™ reports that demand for technology services in the Americas reached a record high in Q2, with combined market ACV rising 39% year-over-year to $21.8 billion.\n\nGrowth was driven by an 86% surge in cloud infrastructure services (IaaS) to $13.2 billion, fueled by AI demand, while managed services ACV declined 12% to $5.2 billion.\n\nFor the full year, ISG maintained its global managed services forecast at 2.1% growth and raised its XaaS growth forecast by 500 basis points to 30%.","key_figures":{"customDimensions":{"americas_q2_iaas_acv":"$13.2 billion","americas_q2_xaas_acv":"$16.6 billion","americas_q2_iaas_growth":"86%","americas_q2_xaas_growth":"69%","americas_h1_combined_acv":"$42.0 billion","americas_q2_combined_acv":"$21.8 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billion","context":"Americas Q2 total XaaS ACV"},{"amount":"$5.2 billion","context":"Americas Q2 managed services ACV"},{"amount":"$3.6 billion","context":"Americas Q2 IT outsourcing (ITO) ACV"},{"amount":"$1.3 billion","context":"Americas Q2 Business process outsourcing (BPO) ACV"},{"amount":"$326 million","context":"Americas Q2 engineering services ACV"},{"amount":"$42.0 billion","context":"Americas first-half combined market ACV"},{"amount":"$31.1 billion","context":"Americas first-half XaaS ACV"},{"amount":"$10.9 billion","context":"Americas first-half managed services ACV"},{"amount":"$24.6 billion","context":"Americas first-half IaaS ACV"},{"amount":"$6.4 billion","context":"Americas first-half SaaS ACV"},{"amount":"$8.1 billion","context":"Americas first-half ITO ACV"},{"amount":"$2.3 billion","context":"Americas first-half BPO ACV"},{"amount":"$516 million","context":"Americas first-half engineering services ACV"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-07-14T15:51:17.857Z","global_importance":35,"audience_relevance":45,"importance_components":{"eventGravity":"Major market data release","sectorWeight":"High (Tech/AI)","dataAuthoritativeness":"High (ISG Index)"}},"durationMs":206720,"modelName":"glm-4.7"}}