ISG Research: Majority of Service Providers Say At Least One in Four Outsourcing Opportunities Now Includes Cloud

     ISG Research: Majority of Service Providers Say At Least One in Four
                 Outsourcing Opportunities Now Includes Cloud

Third-quarter survey confirms continued growth of cloud computing in industry
activity

Outsourcing contracts with cloud scope have tripled since 2010, according to
TPI Index

PR Newswire

STAMFORD, Conn., Nov. 30, 2012

STAMFORD, Conn., Nov. 30, 2012 /PRNewswire/ --Information Services Group
(ISG) (NASDAQ: III), a leading technology insights, market intelligence and
advisory services company, today released research from two separate sources
showing the continued growth of cloud computing in outsourcing industry
activity.

In its third-quarter survey of service providers, ISG Research found more than
half of all respondents reported cloud computing is now a feature of at least
25 percent of their pipeline opportunities. The majority of respondents said
they expected cloud services to grow faster than traditional IT outsourcing
functions, predominantly driven by opportunities in the U.S. market.

"Clearly, cloud is a disruptive trend in the enterprise, and we predict that
this disruption will not only continue, but accelerate, especially for the
traditional IT service providers," said Stanton Jones, Analyst, Emerging
Technology, ISG."From well-known software vendors to more nimble mid-market
players and emerging pure-play infrastructure and SaaS providers, traditional
IT service providers face significant pressure in nearly every direction."

Industry-wide, the number of outsourcing contracts with cloud in scope has
risen steadily along the same trajectory, from 110 in 2010 to 220 in 2011,
according to an analysis of recent TPI Index data. Anticipating a continuation
of this trend, ISG Research projects 300 contracts featuring cloud computing
will be awarded by the end of 2012.

"Cloud services, especially shared platforms, are a new terrain for providers
and clients alike, as they are highly standardized, and can't be easily
customized-- the antithesis of traditional outsourcing," Jones said.

"Although the rate of adoption isn't consistent across cloud categories, we're
seeing the greatest potential for growth and momentum in Software-as-a-Service
(SaaS) – especially for Human Resources, Customer Relationship Management and
collaboration. We project that Infrastructure-as-a-Service (IaaS) will lag
behind SaaS in terms of enterprise-wide adoption."

For more information on ISG Cloud Services, please visit
http://www.isg-one.com/web/expertise/cloud/.

About Information Services Group
Information Services Group (ISG) (NASDAQ: III) is a leading technology
insights, market intelligence and advisory services company, serving more than
500 clients around the world to help them achieve operational excellence. ISG
supports private and public sector organizations to transform and optimize
their operational environments through research, benchmarking, consulting and
managed services, with a focus on information technology, business process
transformation, program management services and enterprise resource planning.
Clients look to ISG for unique insights and innovative solutions for
leveraging technology, the deepest data source in the industry, and more than
five decades of experience of global leadership in information and advisory
services. Based in Stamford, Conn., the company has more than 800 employees
and operates in 21 countries.

For additional information, visit www.isg-one.com.

Follow us on Twitter: https://twitter.com/ISG_News

Follow us on LinkedIn:
http://www.linkedin.com/company/information-services-group

SOURCE Information Services Group (ISG)

Website: http://www.isg-one.com
Contact: Andrew Park, ISG, +1-919-259-9252, andrew.park@isg-one.com; or
Gwennie Poor, Cohn & Wolfe for ISG, +1-212-798-9842,
gwennie.poor@cohnwolfe.com
 
Press spacebar to pause and continue. Press esc to stop.