Enterprise Satisfaction with Providers Falls in Q2, ISG Study Finds

Enterprises give service providers lower scores in Q2 for governance, compliance, and innovation, with only 54.8% of clients satisfied with providers proactively resolving governance and compliance issues, down from 57.3% in Q1. Providers are also rated low for innovation and thought leadership, with only 35% of enterprises very satisfied with the innovation delivered. Companies are dissatisfied with AI service pricing, with nearly 70% only moderately satisfied or not satisfied at all.

Stamford, Conn. - Information Services Group (ISG) has released its Q2 2025 ISG Star of Excellence™ CX Insights Report, revealing that enterprises have given service providers lower scores in governance, compliance, and innovation. The report highlights a decline in satisfaction with proactive issue resolution and compliance, with only 54.8% of clients very satisfied, down from 57.3% in Q1 Enterprises Give Providers Lower Scores in Q2 for Governance, Compliance, Innovation, ISG Study Shows^[1].

Governance and Compliance

The report indicates that approximately one-third of enterprises are only moderately satisfied with governance and compliance by both IT outsourcing (ITO) and business process outsourcing (BPO) providers. ISG advises providers to act as risk partners rather than simply compliance managers and to offer advice tailored to specific industries and regions. With the growing use of AI and analytics, companies also seek stronger data governance capabilities Enterprises Give Providers Lower Scores in Q2 for Governance, Compliance, Innovation, ISG Study Shows^[1].

Innovation and Thought Leadership

Only 35% of enterprises are very satisfied with the innovation providers deliver, with ratings on this measure stagnating. Clients say both ITO and BPO providers meet efficiency and cost objectives but need to focus more on forward-looking initiatives such as process transformation and identifying new analytics use cases Enterprises Give Providers Lower Scores in Q2 for Governance, Compliance, Innovation, ISG Study Shows^[1].

AI Service Pricing

Nearly 70% of companies are only moderately satisfied or not satisfied at all with AI service pricing, suggesting providers need to offer greater price transparency. "AI is changing both how services are delivered and how clients pay for them," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research Enterprises Give Providers Lower Scores in Q2 for Governance, Compliance, Innovation, ISG Study Shows^[1].

Business Continuity

Companies remain concerned about providers’ ability to ensure business continuity amid global disruptions. Nearly half of enterprises are dissatisfied or only moderately satisfied with their providers’ continuity consulting and strategies. ISG advises providers to increase clients’ business resilience through automation and AI-driven contingency planning Enterprises Give Providers Lower Scores in Q2 for Governance, Compliance, Innovation, ISG Study Shows^[1].

Execution and Delivery

Approximately half of all companies are highly satisfied with providers’ execution and delivery, though ratings of timely ITO execution declined in the quarter. Providers were rated highest on collaboration and transparency, with nearly 90% of enterprises reporting high satisfaction Enterprises Give Providers Lower Scores in Q2 for Governance, Compliance, Innovation, ISG Study Shows^[1].

Conclusion

The ISG report underscores the need for service providers to enhance their governance and compliance practices, innovate more effectively, and improve transparency in AI pricing. These findings highlight the growing expectations enterprises have for their service providers to adapt to evolving market demands and regulatory environments.

References

Enterprises Give Providers Lower Scores in Q2 for Governance, Compliance, Innovation, ISG Study Shows^[1] https://www.stocktitan.net/news/III/enterprises-give-providers-lower-scores-in-q2-for-governance-gztaaxmb4hzo.html