High-Growth Digital Business Innovation Providers: A Path to Post-2026 Leadership

The digital transformation landscape is undergoing a seismic shift, driven by the convergence of generative AI (GenAI), cloud computing, and advanced analytics. At the forefront of this evolution are service providers labeled as "Rising Stars" in the ISG Provider Lens™ framework-companies with high potential to ascend to the "Leader" quadrant within 12–24 months according to ISG research. These firms are not only redefining operational efficiency but also unlocking scalable returns through customer journey optimization and enterprise-wide digital reinvention. This analysis identifies two such high-growth providers-Persistent Systems and Lenovo-and evaluates their strategic positioning, GenAI integration, and financial trajectories to assess their potential to dominate post-2026 markets.

The Strategic Importance of ISG's Quadrant Framework

ISG's Provider Lens™ framework serves as a critical lens for investors, categorizing service providers into four quadrants: Leaders, Rising Stars, Contenders, and Niche Players according to ISG research. Rising Stars are distinguished by their innovation, market agility, and ability to deliver localized solutions. For instance, Persistent Systems was recognized as a Rising Star in 2023 for its intelligent automation accelerators, while Lenovo earned the designation in multiple categories, including Managed Workplace Services, across global markets according to ISG data. These labels signal not just current capabilities but also the potential to scale into leadership roles as digital transformation demand intensifies.

The 2026 ISG Provider Lens™ report will further refine this analysis, focusing on how providers leverage emerging technologies like GenAI to modernize legacy systems and enhance customer experiences according to ISG's upcoming report. This upcoming evaluation underscores the importance of aligning with providers that can adapt to rapidly evolving market needs-a trait both Persistent and Lenovo exemplify.

GenAI as a Catalyst for Scalable Returns

GenAI has emerged as a cornerstone of digital innovation, enabling service providers to automate workflows, personalize customer interactions, and reduce operational friction. Persistent Systems, for example, has integrated GenAI into its SASVA™ platform, delivering measurable ROI for clients. A leading business software provider modernized its product development using SASVA™, achieving increased annual recurring revenue. Similarly, a healthcare client transformed its patient care platform, reducing technology debt. These case studies highlight Persistent's ability to translate AI-driven insights into tangible business outcomes.

Lenovo's GenAI initiatives are equally compelling. In Q3 2025, the company reported a 20% year-on-year revenue increase, driven by AI-powered PCs and hybrid cloud solutions. Its GenAI assistant in e-services improved customer support efficiency, while agentic AI capabilities are projected to double workforce productivity by 2027 according to Futurum Group analysis. These metrics demonstrate Lenovo's capacity to scale AI-driven value across both internal operations and client solutions.

However, proving ROI for GenAI remains a challenge for many enterprises. According to a 2025 MIT report, while 95% of organizations invest in GenAI, only 5% achieve measurable financial returns-a phenomenon termed the "GenAI Divide". Persistent and Lenovo stand out by adopting frameworks that align AI initiatives with business KPIs. For example, Gartner's Business Outcome-Based ROI Framework, which Persistent employs, emphasizes pre- and post-deployment KPI tracking. Lenovo's focus on operational metrics-like 60% faster supply-chain decisions and 90% faster content creation according to Lenovo news-further illustrates disciplined AI integration.

Financial Trajectories and Post-2026 Leadership Potential

The financial performance of Rising Stars like Persistent and Lenovo provides a strong foundation for post-2026 leadership. Lenovo's Q1 FY2026 results, for instance, revealed record revenue of $18.8 billion, a 22% year-on-year increase-driven by its Hybrid AI strategy. The Infrastructure Solutions Group (ISG) saw AI infrastructure revenue double, while the Intelligent Devices Group (IDG) achieved a 24.6% global PC unit share according to Futurum Group analysis. Analysts project 7.8% annual earnings growth and 6.6% annual revenue growth for Lenovo through 2026 according to SimplyWall, positioning it as a formidable player in enterprise AI.

Persistent Systems, though less financially transparent, has demonstrated robust client success. Its Q3 FY25 report highlighted a financial services client reducing technology debt. These outcomes align with the broader trend of enterprises prioritizing scalable AI applications.

Risks and Mitigation Strategies

Despite their strengths, both companies face risks. For Persistent, the challenge lies in scaling GenAI pilots into enterprise-wide solutions-a hurdle 74% of companies struggle with. Lenovo, meanwhile, must navigate geopolitical headwinds, such as tariff volatility, while maintaining its global supply chain resilience according to Futurum Group analysis. However, both firms are addressing these risks through strategic investments. Persistent's focus on high-impact use cases-like automating customer support-mirrors McKinsey's recommendation to link AI metrics to business outcomes according to LinkedIn insights. Lenovo's "Lenovo Powers Lenovo" initiative, which digitized internal operations, demonstrates its ability to adapt.

Conclusion: A Compelling Investment Thesis

The convergence of ISG's quadrant framework, GenAI integration, and financial performance paints a compelling case for investing in Rising Stars like Persistent Systems and Lenovo. These providers are not only addressing immediate digital transformation needs but also laying the groundwork for post-2026 leadership. According to ISG's 2026 report, the ability to deliver scalable returns through technologies like GenAI will define the next generation of market leaders. For investors, aligning with these innovators offers exposure to a sector poised for exponential growth.