Always Advancing 2023 ANNUAL REVIEW

Our curious and innovative people never stop seeking “the next.” We’re always probing and thinking of ways to make an impact with our clients and help them realize their ambitions, while building a more successful firm for our employees and our shareholders.

We are always advancing.

A Message From The Chairman

"We have the data, talent and capabilities to help our clients and our firm win in the global marketplace of today, and the determination and vision to keep evolving to meet the demands and challenges of tomorrow."

Michael P. Connors Chairman and Chief Executive Officer

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The Next Big Thing:
AI

AI, specifically Generative AI, has caught the world by storm. It has risen to the top of the agenda of the world’s largest corporations—many of them our clients, who are seeking our advice on the practical applications of this technology, as well as longer-term strategies for scaling AI as the technology grows and matures.

Our new Enterprise AI Advisory Services business, launched in January, ranks among our most important organic business opportunities yet.

Leveraging our trusted, independent advice and long-held expertise in technology sourcing and governance, we are ideally positioned to help our clients define their AI-driven future, find the perfect partners to make it a reality, lead change in their organizations, and realize tangible value at a scale.

The Market Opportunity is Enormous

$175B $175B $175B $175B $175B $175B

Global spending on AI-related services by 2030

3X 3X 3X 3X 3X 3X

spending increase on AI in the next two years (2023-2025)

25% 25% 25% 25% 25% 25%

of all apps will be AI-enabled by the end of 2024

79% 79% 79% 79% 79% 79%

of companies have already seen positive impacts from AI

35% 35% 35% 35% 35% 35%

feel they are lagging behind competitors in AI

68% 68% 68% 68% 68% 68%

believe AI will deliver customer benefits and differentiation

40% 40% 40% 40% 40% 40%

see AI leading tomore spending on IT security, cloud and SaaS

Interest Is High

ISG is advising clients on how to plan and execute their AI journeys.

icon1

A major global hospitality and entertainment company

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A U.S. steel manufacturer

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A major global oil and gas company

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A major European utility company

icon5

A major Canadian bank

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A major European railway company

Our work for these clients includes:

  • Developing AI sourcing strategies
  • Advising on cognitive infrastructure needed to scale AI
  • Creating information and data architectures to feed AI models
  • Advising on architecture for AI-enabled applications
  • Piloting use of GenAI for virtual contact center agents
  • Establishing control planes for AI and data governance
  • Developing cybersecurity sourcing strategies for AI and data
  • Developing AI-driven cost optimization strategies

Client Success

Our growth as a firm depends on the success of our clients. Here are three stories of how we advised our clients in 2023.

Sourcing Advisory and Software Negotiation
Sowing the Seeds for Growth: ISG Finds Major Savings for an Australian Grain Cooperative
IT Spend, Strategy and Transformation
Ladder to the Cloud: ISG Leads a U.S.-Based Manufacturer on a Major Transformation
Sourcing, Organizational Change Management
Leading Nordic Bank Counts on ISG to Transform at Scale and Speed
Sourcing Strategy
Sourcing Advisory and Software Negotiation
Sourcing, Organizational Change Management

2023 Performance

By Region

$173M
$28M
$90M

59%

Americas

31%

Europe

10%

Asia Pacific

Recurring Revenues

$166M $125M $291M

Earnings

Adjusted EBITDA

$38M

Adjusted Net Income

$20M

About the Firm

ISG (Information Services Group) is a leading global technology research and advisory firm.
2023 ANNUAL REVENUES: $291M
INDEX MEMBERSHIP: Russell 2000® Index
2023 ADJUSTED EBITDA: $38M
HEADQUARTERS: Stamford, Conn.
EXCHANGE/TICKER: Nasdaq/III
YEAR FOUNDED:
2006

Clients

ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth.

  • 900+

    Blue Chip
    Clients

  • 75+

    of the World's Top 100
    Enterprises Choose ISG

Industry Leadership

All or most of the top 15 enterprises in these sectors choose ISG.

Health Sciences

15/15

Banking & Financial Services

13/15

Manufacturing

12/15

Technology

12/15

Energy & Utilities

10/15

Insurance

10/15

People & Reach

The global team at ISG is known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities.

  • 1,600

    Professionals

  • 20

    Countries

Market Influence

  • $200B

    of technology spend influenced annually

Environmental, Social and Governance

In support of our shareholders, clients and employees, we have designed programs that create meaningful contributions to the environment, social causes and adherence to strong corporate governance.

Environmental
  • Offset 6,350 tons of CO2, exceeding our Scope 1 and 2 objectives
  • Opened new, green-certified offices in France and Germany
  • Held ‘Go Green’ contest focusing on edible, low-water plants
  • Rolled out firmwide ESG training program
Social
  • Employees devoted more than 10,000 hours to volunteer work
  • ISG Women in Digital Awards went global
  • New paid paternal leave program launched in U.S.
  • Renewed membership in National Minority Development Council in the U.S.
  • Audited suppliers for Modern Slavery compliance
Governance
  • Adopted new policy on the use of Artificial Intelligence
  • Trained and certified 1,200 ISG employees in AI
  • Conducted mandatory information security and privacy training
  • Appointed new Chief Information Security Officer

ESG has become firmly entrenched in the culture of ISG. Through ISG-sponsored programs and numerous individual actions, our people are helping to lead the change for better communities, a better environment and better opportunities for all. Here are some of their stories.

ISG Cares

Our ISG Cares program is now firmly entrenched in the culture of ISG, regularly recognizing and supporting the efforts of employees to make a positive impact on their communities and contribute to the causes they find meaningful.

ISG Women in Digital

Created in 2018, the ISG Women in Digital program grew to new heights in 2023 as it continued to provide a platform to exchange practical advice and innovative ideas on diversity and advancement in the workplace. The community hosts a LinkedIn page, an ongoing podcast series, regular learning and networking events for ISG employees and a newly global ISG Women in Digital Awards program.

ISG IDEA Team

The ISG Inclusion, Diversity, Equity and Awareness (IDEA) team went global in 2023, forming volunteer committees in each region covering specific topics of interest. The IDEA team sent monthly employee communications on IDEA-related topics and marked important dates including Martin Luther King, Jr. Day, Women’s History Month, Pride Month, Juneteenth, NAIDOC Week, Republic Day, India Independence Day and Diwali.

ISG Go Green Team

The ISG Go Green Team broadened its programs and educational opportunities in 2023 to make meaningful contributions to protecting the environment and adhere to strong corporate governance.

Leadership

  • Executive Board
  • Board of Directors
Michael P. Connors*
Chairman and Chief Executive Officer
Michael A. Sherrick*
Executive Vice President and Chief Financial Officer
John Boccuzzi, Jr.
Partner and President
ISG Research
Lois Coatney
Partner and President,
EMEA Sales and Consulting
Todd Dreger
Partner and President
ISG GovernX®
Paul Gottsegen
Partner, Americas Consulting; President, Client Experience & Chair, ISG Research
Steve Hall
Partner and President, ISG EMEA, and
Chief AI Officer
Prashant Kelker
Chief Strategy Officer and
Partner, Americas Consulting
Thomas S. Kucinski*
Executive Vice President and Chief Human Resources Officer
Todd D. Lavieri*
Vice Chairman and President
ISG Americas and Asia Pacific
Lyonel Roüast
Partner and President, ISG South Europe, Middle East & Africa
Kathy Rudy
Partner and
Chief Data and Analytics Officer
Dieter Thompson
Partner and President
ISG Network and Software Advisory
Chip Wagner
Chief Executive Officer, ISG Automation

*Executive Officer

Michael P. Connors[1]
Chairman and Chief Executive Officer
Neil G. Budnick[2]
Director
Gerald S. Hobbs[3]
Lead Director
Christine C. Putur[4]
Director
Bruce N. Pfau
Director
Kalpana Raina
Director
Donald C. Waite III
Director
  • (1) Executive Officer
  • (2) Audit Committee Chair
  • (3) Compensation Committee Chair and Lead Director
  • (4) Nominating and Corporate Governance Committee Chair

Corporate Information

Global Headquarters

Information Services Group, Inc.
2187 Atlantic Street
Stamford, CT 06902

Transfer Agent

Continental Stock Transfer & Trust Co.
One State Street Plaza, 30th Floor
New York, NY 10004

Independent Public Accounting Firm

PricewaterhouseCoopers LLP
300 Madison Avenue
New York, NY 10017

Form 10-K Availability

Requests for copies of the company’s Annual Report on Form 10-K, filed on
March 8, 2024, are available to stockholders free of charge upon
written request to the attention of
Investor Relations, located at the
company’s global headquarters.

Annual Meeting

The Annual Meeting of Stockholders will be held at the company’s global headquarters on April 25, 2024, at 10 a.m, Eastern Time.

Other Information

Information Services Group, Inc. (ISG) securities trade on Nasdaq under the symbol III. To learn more about ISG, visit www.isg-one.com.

Downloads

2023 Annual Review

About

Chairman's Message

Environmental, Social and Governance

The Next Big Thing: AI

Leadership

Client Success Stories

Corporate Information

Performance

Form 10K

For the fourth consecutive year, ISG employees in the Americas donated food and made financial contributions to food banks in Stamford, Conn., Dallas, Detroit and (pictured here) Atlanta—as part of the firm’s “Food for the Holidays” program.

ISG employees in the U.K. suited up for a charity football (soccer) tournament in February to benefit Kick It Out, which works to eliminate discrimination in sports. ISG opened the match with a resounding win and battled their way through several more rounds of play, earning a place in the quarter finals where they displayed heart, grit and effort on behalf of a great cause.

Nineteen ISG colleagues participated in STEPtember, encouraging Australians to walk, swim, ride, wheel or spin their way to 10,000 steps per day during the month of September to raise funds for cerebral palsy research, treatment, services and assistive technologies. Together, the ISG team members walked more than seven million steps and raised almost AU$7,000 (US$4,400) to support the Cerebral Palsy Alliance in Australia.

After a highly successful inaugural year in 2022, the ISG Women in Digital Awards program went global in 2023, with concurrent programs in the Americas, EMEA, Asia Pacific and India. A total of 327 accomplished and impressive women were nominated and featured in an online ISG Women in Digital eBook that has been downloaded more than 15,000 times.

ISG India was named one of India’s Best Workplaces for Women for 2023 by the Great Place To Work® Institute. In India and elsewhere, ISG observed International Women’s Day with the second annual “ISG Journeys” webinars. Nearly 400 ISG employees tuned in to gain insights into career paths, and hear the personal and professional stories of ISG women.

ISG women notched impressive professional and personal accomplishments in 2023. Director Roopa Honnachari, pictured above, moderated a panel of senior telecommunications executives before a live audience at the Global NaaS Event in Texas. Partner Rekha Acharya was named a 2023 Dallas Business Journal Women in Technology winner and Senior Consultant Synthia Adams was elected President of the Project Management Institute, Great Lakes Chapter.

The ISG IDEA Team hosted a "Tastes of India" event attended by more than 100 employees in the Bangalore office. In addition to food, arts and crafts and games from across the country, the event also featured representatives of the Hosa Belaku Artisans Foundation with crafts made by socially and economically disadvantaged women and people with disabilities.

In honor of Pride month, ISG India hosted an education session on LGBTQIA+ inclusion with a representative of PeriFerry, a Bangalore-based organization that advocates for inclusive and nurturing workplaces for all LGBTQIA+ individuals.

In 2023, ISG welcomed Sukh Johal (pictured, above right), a neurodivergent colleague who was referred to the firm by Brilliant Minds, a non-profit started by ISG Principal Consultant Gary Leaderman (pictured, above left) to help neurodivergent people find IT careers. Sukh is now making important and meaningful contributions as an analyst and tester delivering automations for clients.

ISG has made a corporate commitment to offset greenhouse gas emissions from auto rental, hotel, air and rail travel by planting more than 9,000 trees in the ISG Forest on Tree-Nation. As part of our consistent view towards sustainability, ISG moved to new certified sustainable offices in Frankfurt (above) and Paris.

The second annual ISG Grow Green contest encouraged employees to enter a friendly, six-month competition to grow native plants, bee attractors, and low-water or edible plants.

ISG designed and launched its first-ever training course on environmental, social and governance (ESG) principles in 2023, in response to an employee survey that found 78 percent of ISG advisors wanted to learn more about ESG and sustainability. To encourage participation, the firm planted a tree in the ISG Forest on Tree-Nation for every employee who completed the course.