HOUSTON:  TPI, the largest sourcing data and advisory firm in the world and a unit of Information Services Group, Inc. (Nasdaq: III), a leader in the information-based services industry, today announced the release of the TPI Momentum 2010 Market Trends & Insights Vertical Industries Report, a comprehensive look at outsourcing activity in 27 major sectors of the economy that shows the factors driving new outsourcing adoption, client decision-making, and spending levels vary dramatically by market segment.

Cost-cutting imperatives brought on by weak economic conditions are affecting outsourcing activity in all verticals, including several that traditionally have outsourced only sparingly. Meanwhile, outsourcing spending is falling in some of the largest verticals, including Diversified Financials, Consumer Durables and Banking.

"There are clearly new industry, regulatory, political and technological drivers that are impacting outsourcing activity," said TPI Momentum Chief Research Officer Paul Reynolds. "This report highlights the specific, topical factors that impact outsourcing spending levels and decision-making within each of these verticals."

The report, which combines proprietary market data on outsourcing activity within the Forbes® Global 2000 (G2000) largest public companies with commentary from TPI's expert advisors, is designed to help service providers and market watchers identify the latest critical market trends and opportunities.

With more than 260 pages and more than 1,500 charts and graphs, it features a global market overview plus individual chapters on 27 vertical industries. It shows not only total spending by G2000 companies within each industry, but also documents the specific services being outsourced and identifies which service providers are winning the contracts. TPI advisors share their recent experiences from real-world sourcing engagements to provide insight into the specific factors that are influencing decision-making in each industry. "Most service providers go to market by vertical, and our research was designed with this in mind," Reynolds said.

TPI has identified common influences that span markets, such as cost-cutting initiatives, government involvement, technology and increasing demand from emerging markets. The specific outsourcing opportunity within each industry is shaped by penetration rates, historical spending levels, current catalysts and other conditions.

TPI found significant year-over-year changes in the market opportunities for two-thirds of the 27 industries studied. Some industries that were previously weak for hunting new prospects are now much more promising, while in other industries service providers would be better served by trying to expand relationships with current clients.

Other findings and highlights from the report include:

• G2000 companies collectively spent $71 billion in annualized contract value (ACV) on outsourcing in 2009, a 3 percent increase over 2008, and those companies that outsourced spent an average of $104 million in ACV each year. However, there are significant differences in average spending by vertical. In Telecommunications Services, ACV averaged more than $300 million, while in Construction it was less than $25 million.
  

• TPI is currently tracking an active outsourcing contract in 34 percent of G2000 companies, up 2 percent over 2009. In certain industries, such as Telecommunications Services and Aerospace and Defense, outsourcing is a common business practice, with more than 60 percent of G2000 companies with an active outsourcing contract, while penetration in verticals such as Construction and Trading Companies is much lower.
  

About TPI:
TPI, a unit of Information Services Group, Inc. (ISG) (Nasdaq: III), is the founder and innovator of the sourcing advisory industry, and the largest sourcing data and advisory firm in the world. We are expert at a broad range of business support functions and related research methodologies. Utilizing deep functional domain expertise and extensive practical experience, our accomplished industry experts collaborate with organizations to help them advance their business operations through the best combination of business process improvement, shared services, outsourcing and offshoring. In 2010, TPI was ranked no. 1 by the International Association of Outsourcing Professionals Global Outsourcing 100: World's Best Outsourcing Advisors. For additional information, visit www.tpi.nwt.

About Information Services Group, Inc.:
Information Services Group, Inc. (ISG) (Nasdaq: III) was founded in 2006 to build an industry-leading, high-growth, information-based services company by acquiring and growing businesses in advisory services, including strategy, implementation and management, and market information, including market measurement, analytics and related product and services. In November 2007, the company acquired TPI, the largest sourcing data and advisory firm in the world. Based in Stamford, Conn., ISG has a proven leadership team with global experience in information-based services and a track record of creating significant value for shareowners, clients and employees. For more, visit www.informationsg.com.