Q1 2025 Information Services Group Inc Earnings Call Transcript

May 9, 2025 / 01:00 PM GMT

Release Date Price: $4.64 (+16.00%)

Transcript 10-Q8-K

Key Points

Positve

The global IT and business services market showed resilience, with a combined growth of 18% year over year and 2% sequentially in Q1 2025.
AI-related activity remained robust, with a 28% increase on a trailing 12-month basis, indicating a shift from experimentation to scale deployment.
The as-a-service market accelerated to over 18 billion in annual contract value (ACV) this quarter, up 30% year over year.
Engineering services generated its best quarter ever with 1.1 billion in ACV, up 42% year over year.
Momentum in AI adoption continues to accelerate, with over 18 billion in AI-related project awards over the trailing 12 months.

Negative

The introduction of sweeping tariffs and potential retaliatory measures has raised short-term uncertainty, particularly across discretionary IT spend.
Application development, which accounts for a significant portion of the outsourcing market, is under pressure due to potential pullbacks in discretionary spending.
Manufacturing, especially automotive and electric vehicles, faces steep near-term headwinds with potential declines in engineering and IT capital expenditure projects.
The BPO segment experienced a 39% year-on-year decline in ACV, marking the biggest quarterly drop in over a decade.
The Americas region saw a decline in managed services ACV for the third time in the past five quarters, indicating potential regional challenges.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

III.OQ - Information Services Group Inc
Q1 2025 Information Services Group Inc Earnings Call
May 09, 2025 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning, good afternoon, and good evening to all the investors, service providers, and corporates who have joined the call today. I, Rishi Jun Jawala, on behalf of IFL Capital, welcome you all to the first quarter 2025 ISGlobal Index call. I'd like to thank the team at ISG for their valued work on the industry and for asking us to host this call today. ISG has been hosting these index calls on the IT and business services industries for more than 20 years. IG influences $200 billion of technology spending each year, giving them deep insights into the industry as well as key changes in enterprise demand. It is one of the largest outsourcing consultants in the world, helping more than 500 corporates globally. With

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