ISG Research On-Demand

The advances in data, analytics, Generative AI (GenAI) and agentic AI are transforming how healthcare and life sciences (HCLS) organizations deliver care, accelerate research, manage operations and engage patients. These innovations are driving measurable improvements in efficiency, accuracy and patient outcomes; however, adoption is not without challenges. Regulatory complexity, talent shortages, operational pressures and the need for responsible AI use demand thoughtful strategies. Organizations that can simultaneously innovate, scale responsibly and work closely with analytics partners to translate analytics goals into tangible outcomes will be the ones to succeed.

The Finance and Accounting Outsourcing (FAO) market in 2025 is undergoing one of the most significant shifts it has seen in the past decade. In contrast to 2024, when discussions surrounding AI, generative AI (GenAI) and advanced analytics primarily focused on pilots and early-stage PoCs, the current landscape is defined by operationalized innovation. Providers have transitioned from experimentation to deployment, embedding these technologies into live delivery environments and demonstrating measurable business impact.

Supply chains are being reimagined with intelligent orchestration, adaptability and resilience. Globally, they are under mounting pressure due to complexities driven by multitier supplier ecosystems, distributed manufacturing setups, hyperlocalized demand patterns and operational dependencies arising from geopolitical shifts. Supply chain companies
are increasingly recognizing that data and AI are essential for transforming supply chains, enabling responsive and even preemptive actions to minimize disruptions and their economic impact.

The dynamics of cybersecurity in the U.S. public sector are marked by an escalating threat environment, requiring a shift beyond operational continuity to comprehensive mission resilience. Government agencies at the federal, state and local levels face a complex array of sophisticated cyberthreats while pursuing critical digital transformation initiatives, including AI integration.

The cybersecurity threat landscape in the U.S. remains highly dynamic, presenting continuous challenges for organizations. Analysis of recent incidents by industry and public sector organizations reveals ongoing evolution in
adversary tactics and a concerning increase in the scale and impact of attacks.

The need for robust identity and access management (IAM) has become critical due to escalating cyberthreats, the expansion of hybrid work models and the widespread adoption of cloud technologies. IAM provides the foundation for secure operations, enabling organizations to innovate while meeting rigorous regulatory requirements.

In 2025, the Google Cloud partner ecosystem is driving significant enterprise value within the U.S. by leveraging Google Cloud’s strengths in AI, data modernization and analytics, security, and open, scalable infrastructure. Global system integrators (GSIs) with a strong U.S. presence collaborate with Google Cloud to deliver customized solutions and expert services (consulting, implementation, managed services, enterprise data infrastructure, and generative AI [GenAI] and AI services). This collaboration helps enterprises navigate complexity, accelerate cloud adoption and modernization, harness the transformative power of GenAI with platforms such as Gemini and Vertex AI, and achieve tangible business outcomes in an increasingly hybrid cloud and multicloud environment.

The U.S. state, local and education (SLED) IT infrastructure services market is projected to grow approximately to $150 billion by the end of 2025, with expectations to reach over $170 billion by 2028, with a moderately flat growth rate when compared to last year, mainly due to budget constraints and the changes brought in by the new government. High-impact services in modernization, cybersecurity and hybrid cloud technologies will drive spending as agencies will need to replace their legacy IT infrastructure. Hybrid cloud infrastructure managed services are gaining traction, as 90 percent of SLED agencies are expected to adopt hybrid cloud models, highlighting their importance in the U.S. public sector organizations.

In the realm of enterprise software-defined networking (SD-networking) solutions and services, organizations face a rapidly evolving landscape shaped by various strategic factors, including the emergence of new technologies, business imperatives and organizational processes. These factors are intricately aligned with global trends, such as enterprise
digitalization, business transformation, the need for enhanced security and the growing momentum toward cloudification. This study, conducted by the ISG Provider Lens™, focuses specifically on SD-networking within the U.S. market. It encompasses a broad spectrum of services and technologies, including managed SD-WAN, transformation services (consulting and advisory), edge technologies (including private enterprise 5G) and secure access service edge (SASE).

Advanced analytics and AI are fundamentally reshaping retail and consumer packaged goods (CPG) businesses. Analytics leaders are increasingly embedding data-driven capabilities across the entire value chain, from product innovation and supply chain to merchandising, sales and customer engagement. While implementation is still scaling up, ISG anticipates that comprehensive AI-driven transformation can deliver substantial profit uplift across retailer/CPG operations. This report explores key areas where analytics leaders are integrating advanced analytics and AI.

The life sciences industry is undergoing a profound transformation, shaped by digital disruption, patient-first innovation and an unrelenting drive toward operational sustainability. Service providers that lead in this space are moving beyond traditional models by embracing AI, generative AI (GenAI), IoT and advanced analytics to reimagine value delivery across clinical development, manufacturing, commercial operations and patient engagement. At this pivotal juncture, the strategic imperative is clear: those who embed intelligence, interoperability and inclusivity across their value chain will accelerate innovation and redefine outcomes.

I am struck by the blizzard of software announcements this year describing new features for CX tools that are “agentic,” meaning autonomous tools take actions without (much) human intervention. Industry conversation about agentic AI has proceeded ahead of clarifying definitions and a sense of how it fits on a continuum of rapid AI development.

The IT department of any enterprise is integral to implementing and managing the execution of its data objectives, just as the finance department is integral to implementing and managing financial objectives. Few enterprises would allow the finance department complete autonomy to define financial strategies; however, too many enterprises allow the IT department to define data strategies. Treating data as a business discipline—rather than a technical one—is a critical component of delivering competitive advantage through investment in data processing, analytics and artificial intelligence. This can be facilitated by adopting the most appropriate organizational approach, depending on the data activity.

The need for effective cybersecurity strategies remains a priority as enterprises face ever-increasing complex cyber threats. Nonetheless, the conventional approach in which IT departments, especially Chief Information Officers (CIOs) and Chief Information Security Officers (CISOs), exclusively manage the procurement of cybersecurity software, is showing its limitations. A crucial shift is occurring: Cybersecurity is no longer solely the domain of IT but has become a strategic business imperative. Leaders across different departments, from finance to operations, must appreciate the indispensable role they play in guiding cybersecurity decisions. This Analyst Perspective explores the influences in cybersecurity software procurement beyond IT and security teams, highlighting the necessity for unified communication, collaboration and strategic alignment between technical needs and overarching business goals.

SAP Business Data Cloud (BDC) is the unification of capabilities that previously existed in two separate offerings: SAP Datasphere and SAP Analytics Cloud. As its name implies, Analytics Cloud was SAP’s analytics offering. However, unlike many of its competitors, it also included planning capabilities. SAP Datasphere was the evolution of SAP’s data warehouse as a service (formerly called SAP Data Warehouse Cloud) and included data management, data integration, data federation, data governance and data catalog capabilities.

Our 2025 research divides the workforce-management landscape into five focused guides—WFM Basics, WFM Suites, WFM for Healthcare, WFM for Manufacturing and WFM for Retail. Each report applies a common evaluation lens yet weights criteria to reflect the operational realities, compliance pressures and innovation priorities unique to its scope. Together, they provide a panoramic view of the market and a set of targeted benchmarks that let buyers zero in on the capabilities—and partners—best aligned to their context.

As enterprises navigate their digital transformation journeys, several key trends are shaping the adoption and utilization of SAP solutions. Many businesses face difficulties constructing a robust business case for migrating from SAP ERP to SAP S/4HANA. Understanding the TCO for the initial years remains a significant hurdle, with organizations seeking more clarity and frameworks to evaluate potential returns and justify the transition investment effectively. While pressure exists to migrate to SAP S/4HANA, firms are taking a cautious approach globally to ensure business continuity and pace the timing of the migration to minimize impact. 

The 2025 SAP Ecosystem study for the U.S. observes that enterprise clients, like the previous year, continue to have a cautious and risk-averse approach to planning their migration from ECC 6.0 to SAP S/4HANA cloud. External factors such as economic headwinds and tariff conflict and technical factors such as limited reference business use cases, uncertain ROI, legacy systems to support technology such as generative AI (GenAI), longer implementation duration and data migration challenges have made the transition to SAP S/4HANA even more complex. Enterprises in the U.S. are reassessing their strategies for transformation to SAP S/4HANA. They are increasingly focused on an approach that guarantees minimal business disruption and cost-effective solutions. These enterprises are seeking service partners that can offer strong consulting capabilities for a seamless transformation road map. Clients in the U.S. want to assess the risks and implications of accepting SAP’s subscription terms and the future expansion of their ERP systems, leading to an increase in demand for robust risk management and change management tools and solutions. 

The shift toward a Zero Trust Network Access (ZTNA) framework is a strategic move for enterprises aiming for an enhanced security posture. ZTNA operates on the principle of "never trust, always verify," ensuring that every user and device is authenticated and authorized before accessing resources. In this context, Privileged Access Management (PAM) emerges as a critical enabler for an effective ZTNA implementation.

ISG Software Research is expanding our ISG Buyers Guide™ coverage to include the topic of sustainability. Our buyers guide will focus on sustainability exclusively rather than the full spectrum of environmental, social and governance topics. One reason is that gathering, managing, analyzing and reporting environmental data under the various frameworks and statutes presents enterprises with considerably greater challenges than the other two. For most, it is likely the least well defined and the hardest for acquiring and managing environmental-related data. ISG Research asserts that through 2027, one-half of enterprises will have insufficient data and software to adequately measure their environmental, social and governance metrics to inform their governance strategy, risk management and targets.