Information Services Group (Nasdaq: III) reported that Asia Pacific’s technology services market declined by 7.8% year-over-year in the fourth quarter, driven by a 9.2% drop in managed services engagements and a 6.5% reduction in cloud services contracts. Demand weakened across major markets, with Japan and Australia each posting double-digit percentage declines in new project starts. ISG analysts attribute the downturn to enterprise budget reallocation and delayed digital transformation initiatives, warning investors that near-term revenue growth in the region may remain pressured until corporate IT spending rebounds.

In contrast, III’s ISG Index™ found that the Americas technology services and software market achieved a quarterly all-time high, with spending up 11.4% year-over-year in Q4. AI-powered cloud migrations and hyperscale infrastructure deployments led the surge: professional services revenue associated with artificial intelligence implementations grew by 24%, and cloud-managed services bookings rose by 18%. Large banking and retail clients accounted for over 40% of the region’s deal value, underlining strong enterprise appetite for next-generation workloads and digital commerce platforms.

III’s latest Provider Lens® report highlights that European power and utilities companies plan to increase spending on analytics and AI-driven grid modernization by 22% in 2025. The study, covering 39 service providers, notes that investments in smart metering and predictive maintenance platforms will rise by 30% as utilities respond to stricter emissions regulations. Leading systems integrators such as Accenture, Capgemini and Deloitte were named Leaders across multiple quadrants, reflecting their strong track records in delivering hybrid microgrid and energy-as-a-service solutions.

The 2025 ISG Provider Lens® Advanced Analytics and AI Services reports for the U.S. reveal that enterprise AI spending has nearly tripled to represent almost 6% of overall IT budgets. With average software portfolios approaching 2,000 applications, large organizations are consolidating data governance under centralized AAAI operating models, while midsize firms adopt hybrid frameworks combining central oversight and domain autonomy. Specialist providers focused on regulated data—such as clinical datasets and supply-chain telemetry—are emerging as key partners, and outcome-linked pricing models are gaining traction in large-scale analytics engagements.