ISG urges overhaul of outsourcing contracts to keep pace with accelerating AI adoption

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Artem Shendetskii

14.08.2026

ISG urges overhaul of outsourcing contracts to keep pace with accelerating AI adoption — ISG urges AI-ready contracts

ISG calls for companies to revise their outsourcing contracts to address the rapid changes driven by artificial intelligence. Traditional agreements, designed for predictable services and human labor, are no longer sufficient as AI accelerates transformation in outsourcing and managed services.

The firm has released a whitepaper outlining how current contract models must evolve to integrate AI-enabled services and maintain operational agility. ISG points out that businesses unprepared for these shifts may risk ineffective partnerships and missed opportunities.

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ISG previously examined how self-managing applications powered by AI could transform enterprise IT services. The firm has also called for strengthened data strategies in response to the rise of agentic AI, citing growing business demands for quality and governance in a recent analysis. These findings form part of ISG’s ongoing focus on AI’s impact on technology and service delivery.

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