Organizations transition from in-house ownership as networks grow more complex and regulated across distributed enterprise environments, ISG Provider Lens® report says
Enterprises in Europe are changing how networks are designed, operated and governed using managed network services (MNS) that increasingly incorporate AI-assisted and AI-driven capabilities, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens® Enterprise Managed Network Services report for Europe finds that many organizations across the region historically resisted MNS, relying instead on large internal IT and data operations teams. Companies retained direct control of mission-critical infrastructures, including private data centers, wide area networks and on-premises networking resources. Early MNS offerings were limited in scope, focusing mainly on wired connectivity and basic maintenance. However, as European enterprise networks expanded and diversified, MNS solutions evolved to support multiple delivery models that address the demands of hybrid architectures and global operations.
"In an increasingly threat-heavy environment, enterprises must maintain strong security, minimize downtime and meet multiple regulatory requirements while supporting mobile and cloud-centric workforces," said Jon Harrod, partner at ISG. "MNS solutions have become central to addressing these operational and security demands across European enterprise environments."
Hybrid work and distributed operations have become standard in enterprises across the region, increasing complexity for IT and network teams, the report says. Employees now need secure and reliable access to applications from virtually anywhere, while networks must support legacy systems alongside cloud workloads, IoT devices and edge platforms. Simultaneously, rapid advances in AI-powered infrastructure and more persistent cyber threats are raising expectations for continuous monitoring and rapid security responses. Together, these factors are leading enterprises to rely more on MNS to oversee complex environments.
Alongside broader adoption of MNS, European enterprises are increasingly turning to network as a service (NaaS) solutions rather than building and operating complex network environments internally, ISG says. They seek providers with advanced expertise, automation capabilities and specialized staffing. AI and GenAI tools enable network operators to automate routine tasks, improve predictive analytics and strengthen incident detection and response. Enterprises are prioritizing NaaS providers with these capabilities to reduce operational burdens and enable more efficient, scalable and secure services.
Across Europe, network services are also helping enterprises meet regulatory and data sovereignty requirements while adapting quickly to changing business needs, such as scaling up operations during expansion phases. By delegating resource-intensive network operations, enterprises can focus on core business priorities while improving efficiency and sustainability.
"Organizations are increasingly aligning network strategies with sustainability and energy efficiency goals," said Kenn Walters, lead author of the report. "MNS offerings support these objectives by optimizing network resources, helping organizations reduce their carbon footprint."
The report also explores other trends in the enterprise MNS market in Europe, including IoT and edge computing adoption and efforts to balance modernization with cost control amid faster refresh cycles.
For more insights into network-related challenges faced by enterprises in Europe, plus ISG's advice for overcoming them, see the ISG Provider Lens® Focal Points briefing here.
The 2025 ISG Provider Lens® Enterprise Managed Network Services report for Europe evaluates the capabilities of 36 providers across three quadrants: Managed Network Services Evolution, Managed Enterprise Connectivity Solutions (DIA, VoIP & VPN) and Network as a Service (NaaS).
The report names Accenture, Colt, Deutsche Telekom, GTT, NTT DATA and Orange Business as Leaders in all three quadrants. Comcast Business, HCLTech, Verizon Business and Wipro are named as Leaders in two quadrants each, while Capgemini, Computacenter, DXC Technology and Kyndryl are named as Leaders in one quadrant each.
In addition, Computacenter and DXC Technology are named as Rising Stars — companies with a "promising portfolio" and "high future potential" by ISG's definition — in one quadrant each.
In the area of customer experience, Tata Communications is named the global ISG CX Star Performer for 2025 among enterprise MNS providers. Tata Communications earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
A customized version of the report is available from Orange Business.
The 2025 ISG Provider Lens® Enterprise Managed Network Services report for Europe is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens® Research
The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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