Hello. This is Stanton Jones and Steve Hall with a special recap of the 4Q and Full Year 2025 ISG Index call. You can download the slides here, and watch a replay here.
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IT and business services sector growth continued to be anchored in cloud and software, while managed services growth remained uneven and constrained across geographies and industries. Enterprise buyers concentrated spend in fewer, larger strategic agreements, reflecting a cautious but deliberate approach to transformation.
Enterprises will continue to navigate unprecedented levels of economic policy uncertainty. This uncertainty will continue to constrain discretionary spending as companies focus on transformation-led cost optimization.
At the same time, AI-related demand will continue to be very strong. This will drive growth in cloud, platforms and AI-enabled engineering and business process services. It will also put significant pressure on traditional labor-based pricing and productivity benchmarks.
Given this, here’s our forecast:
You can catch a replay of the call here and download the slides here.