Organizations focus on sovereign infrastructure, GenAI and FinOps in carrying out AI-native cloud transformation, ISG Provider Lens® report says
Enterprises in the U.K. are adopting AI-native multicloud environments to improve agility, compliance and cost transparency amid tighter regulations and economic uncertainty, 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® Multi Public Cloud Services report for the U.K. finds enterprises entering a pivotal phase of cloud transformation shaped by generative AI (GenAI) deployments, sovereign infrastructure mandates and automation-focused operating models. Especially in the finance, healthcare and manufacturing sectors, organizations are redesigning their cloud environments to support next-generation workloads while enforcing jurisdictional data controls. This approach reflects a growing need for cloud platforms that prioritize governance, accountability and long-term flexibility.
"As British enterprises build their cloud strategies, they are striking a balance between governance, cost optimization and innovation," said Rakesh Parameshwara B, director and head of U.K. Banking and Insurance at ISG. "Digital sovereignty and GenAI adoption are becoming key considerations in productivity and operational resilience."
A growing number of U.K. enterprises are embedding autonomous agents into workflows, the report says. They are using GenAI for documentation, incident resolution and knowledge retrieval to streamline operations and reduce manual effort. As agentic automation matures, it is reshaping expectations around productivity, observability and operational resilience. AI is becoming integral to how enterprises manage and operate cloud environments at scale.
As cloud strategies mature, FinOps is evolving from a cost control function into a core governance discipline, ISG says. The unpredictability of costs in multicloud environments has increased the importance of cost transparency and financial accountability. Enterprises increasingly rely on cost optimization and predictive budgeting based on service level agreements (SLAs) to improve oversight and manage spending more effectively. This focus reflects enterprises' efforts to sustain AI-driven cloud adoption while maintaining financial discipline.
Digital sovereignty requirements are accelerating the adoption of jurisdictional controls across the U.K. market, the report says. Enterprises are implementing Hold Your Own Key (HYOK) models, U.K.-specific cloud zones and strict data residency policies to address regulatory and risk obligations. These measures are especially important for enterprises functioning in highly regulated sectors, such as finance, healthcare and manufacturing.
"Enterprises are moving away from transactional cloud sourcing toward long-term approaches focused on innovation," said Meenakshi Srivastava, lead analyst, ISG Provider Lens Research, and lead author of the report. "They seek providers that are strategically investing in compliant architectures and outcome-driven engagement models."
The report also explores other trends in the public cloud services market in the U.K., including the rising influence of sustainability metrics and cross-industry convergence in shaping enterprise cloud transformation priorities.
For more insights into the enterprise challenges raised by multicloud environments in the U.K., along with ISG's advice for addressing them, see the ISG Provider Lens® Focal Points briefing here.
The 2026 ISG Provider Lens® Multi Public Cloud Services report for the U.K. evaluates the capabilities of 61 providers across seven quadrants: Consulting and Transformation Services — Large Accounts, Consulting and Transformation Services — Midmarket, Managed Services — Large Accounts, Managed Services — Midmarket, FinOps Services and AI-driven Optimization, Hyperscale Infrastructure and Platform Services, and SAP HANA Infrastructure Services.
The report names Computacenter and Rackspace Technology as Leaders in four quadrants each. Accenture, Capgemini, HCLTech, Infosys, LTIMindtree and Wipro are named as Leaders in three quadrants each. AWS, Claranet, Coforge, Cognizant, DXC Technology, Google, Hexaware, IBM, Kyndryl, Microsoft, TCS, Tech Mahindra and Unisys are named as Leaders in two quadrants each. Telefonica Tech is named as a Leader in one quadrant.
In addition, Hexaware, Kainos, LTIMindtree, Mphasis and TCS 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, LTIMindtree is named the global ISG CX Star Performer for 2025 among multi public cloud service providers. LTIMindtree 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.
Customized versions of the report are available from AWS, Coforge, Computacenter and Unisys.
The 2025 ISG Provider Lens® Multi Public Cloud Services report for the U.K. 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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