STAMFORD, Conn., June 28, 2012 /PRNewswire/ -- Information Services Group (ISG) (NASDAQ: III), a leading technology insights, market intelligence and advisory services company, today announced the release of the Momentum Market Trends & Insights 2012 Vertical Industries Report, which tracks outsourcing spending and analyzes across 27 major vertical industries, analyzing key business drivers, challenges and priorities by sector.
With $16.5 billion in spending last year, Telecommunications Services was the top outsourcer, followed by Banking, with $10.5 billion, the report found. Together, the two industries accounted for more than one-third of all spending on outsourcing by Forbes Global 2000 companies. The Insurance sector, with $5.3 billion, was third.
"In 2011, annual spending increased in 15 vertical industries and declined in a dozen, and we anticipate spending patterns will swing again in 2012," said Paul Reynolds, Chief Research Officer, ISG. "Spending patterns ranged widely, from a 12 percent decline in the consumer durables vertical to a 53 percent spike in utilities, where operators are seeking help to meet new regulatory requirements."
Industry responses to key technology trends and developments also varied, ISG research found."Cloud computing adoption grew but was sharply divided by vertical," said Reynolds. "Highly regulated industries and those with strong data protection requirements such as Aerospace and Defense and Financial Services remain cautious, while technology-oriented industries are more likely to invest in cloud-based solutions." Reaction to social media and mobile technology is similarly mixed, with consumer-facing industries showing the strongest interest in mobile solutions. "Service providers are being called upon to help create the applications, services and infrastructure to support these emerging capabilities." One of the most consistent themes to emerge from the report was an increased focus on business innovation, with clients looking to service providers to lead transformation initiatives, increase Software-as-a-Service (SaaS) implementations and speed BPO adoption.