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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

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.

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SOURCE Information Services Group (ISG)

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