Revenue Rise and New Sourcing Platform for ISG

Technology research and advisory firm Information Services Group (ISG) has reported revenue for the full year 2023 of $291m, up 1.7% despite a very slow fourth quarter in which revenue dropped 11% to $66.2m.

Founded by former VNU exec Michael P. Connors (pictured) in 2006, the firm now has 1,600 employees based in twenty countries and specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis.

Fourth-quarter adjusted EBITDA was $6m while for the full year the figure was $38m. The company expects another 'soft' quarter to kick off 2024, with projected revenue between $65m and $67m.

Chairman and CEO Connors describes the annual results as 'solid' given economic circumstances and says he 'expects client spending to accelerate as the year progresses, especially if, as expected, inflation continues to cool and central banks respond with interest rate cuts'. Fourth quarter sluggishness is put down to 'slower client decision-making in an uncertain macro environment'.

Reported revenues were $173.2m in the Americas, up 4%; flat at $89.7m in Europe; and down 5% to $28.1m in Asia Pacific. Globally the firm reported record recurring revenues of $125m, up 16 percent, driven by its research business and platforms including ISG GovernX and ISG ProBenchmark - and now represents 43% of its overall revenue.

The group also announced today the launch of ISG Tango, a new sourcing platform which digitizes all elements of its sourcing transactions business, developed over the past year and promising 'real-time insights that streamline the entire transaction process and accelerate time to agreement'. Connors says the new platform will allow ISG to penetrate the underserved midmarket.

Web site: www.isg-one.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.