Information Services Group, Inc III

Competitive advantage analysis · technology

Software & SaaS Specialized
Overall moat score
51/100
Moderate

About Information Services Group, Inc

Information Services Group, Inc., together with its subsidiaries, operates as an artificial intelligence (AI) centered technology research and advisory company in the Americas, Europe, and the Asia Pacific. It offers digital transformation services, including sourcing advisory and cloud and data analytics; managed governance and risk; network carrier; technology strategy and operations design; change management; and market intelligence and technology research … Full III analysis →

Competitive advantage assessment

Key strengths

  • Debt Covered by Cash Generation Debt capacity is solid (score 0.64), supporting resilience through cycles.
  • Returns Hold Over Time Return durability is healthy (score 0.62), indicating durable capital efficiency.

Key risks

  • Weak Product Reinvestment R&D commitment lags peers (score 0.31), weakening the innovation moat.
  • Growth-Profit Balance Looks Weak Innovation payoff is weak (score 0.30), indicating limited return on reinvestment.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
63

Where III ranks in Information Technology Services

Information Services Group, Inc ranks #39 of 78 scored companies in Information Technology Services by moat score — the top 50%. The widest moat in the group is Mastercard Incorporated (MA) at 84/100.

Moat scores for companies ranked near III in Information Technology Services
# Company Moat score Rating
35 GDS Holdings Limited GDS 53/100 Moderate
36 Penguin Solutions, Inc. PENG 52/100 Moderate
37 ASGN Incorporated ASGN 52/100 Moderate
38 Grid Dynamics Holdings, Inc. GDYN 51/100 Moderate
39 Information Services Group, Inc III 51/100 Moderate
40 Kyndryl Holdings, Inc. KD 50/100 Moderate
41 CLPS Incorporation CLPS 48/100 Developing
42 Ingram Micro Holding Corporatio INGM 48/100 Developing
43 Global Mofy AI Limited GMM 47/100 Developing

See every Software & SaaS company ranked by moat score →

How III scores on the Software & SaaS Specialized defenses

Pricing Power

Score 63 · 20% of the moat score

In software, pricing power is visible in gross margin: a vendor that has to discount in order to renew gives it up first.

Recurring Revenue Stickiness

Score 42 · 18% of the moat score

Recurring revenue is the model's central claim, and it is a moat only when customers renew and expand without being re-sold each year.

Innovation Engine

Score 31 · 16% of the moat score

Software is competed away rather than depreciated, so a vendor that stops investing loses its category.

Cash Scalability

Score 54 · 18% of the moat score

The test of a software business is whether growth eventually stops consuming cash.

Capital Efficiency

Score 57 · 16% of the moat score

A software platform employs very little capital, so a genuine franchise should produce high returns on it without leverage.

Balance Sheet Resilience

Score 61 · 12% of the moat score

Software companies fund years of customer acquisition before those customers pay back, which makes access to capital a strategic variable rather than a treasury detail.

How each Software & SaaS Specialized defense is measured, in full →

Understanding III's moat

What is Information Services Group, Inc's moat score?

Information Services Group, Inc (III) scores 51 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #39 of 78 scored companies in Information Technology Services, the top 50%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 77 companies in Information Technology Services. Its strongest defense is Pricing Power (63/100) and its weakest is Innovation Engine (31/100).

How does Information Services Group, Inc compare with other Information Technology Services companies?

Information Services Group, Inc ranks #39 of 78 scored companies in Information Technology Services by moat score. The widest moat in Information Technology Services is Mastercard Incorporated (MA) at 84/100. The companies ranked closest are Grid Dynamics Holdings, Inc. (GDYN) at 51 just above it and Kyndryl Holdings, Inc. (KD) at 50 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Software & SaaS Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 77 companies in Information Technology Services. The defenses are then weighted to produce the overall score out of 100.

Why is Information Services Group, Inc scored with the Software & SaaS Specialized template?

Software costs almost nothing to reproduce, so the entire economic question is whether customers keep paying. Revenue is a subscription rather than a sale, the cost of winning a customer is paid years before that customer becomes profitable, and margins arrive only if renewals hold. The Software & SaaS template scores retention, reinvestment, and the point at which growth turns into cash.

Which competitive defenses are measured for Information Services Group, Inc?

The Software & SaaS Specialized template measures 6 defenses, and III scores: Pricing Power (63), Recurring Revenue Stickiness (42), Innovation Engine (31), Cash Scalability (54), Capital Efficiency (57), Balance Sheet Resilience (61). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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