Operators integrate networks and software into cloud-native models for efficiency and customer experience, ISG Provider Lens^® report says

Telecom enterprises are adopting new, integrated operating models in which AI is a core component, according to two new research reports published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens^® global Telecom Transformation and Engineering Services report finds that communications service providers (CSPs) are modernizing networks and software based on cloud-native, software-defined principles. Integration and orchestration among previously distinct components of carrier operating environments is essential for improving productivity and customer experience, especially as networks incorporate satellites and other non-terrestrial infrastructure. The 2026 ISG Provider Lens^® global Telecom Autonomous IT and Business Operations Services report finds that CSPs are elevating AI’s role in operations from task-level automation to coordinated, governed autonomy.

“Telecom operators have virtualized network functions and migrated to the cloud. Now, they need to connect all parts of the business into an intelligence-driven operating environment,” said Rajib Datta, partner, ISG. “AI is essential to achieving the speed, efficiency and flexibility they need.”

CSPs are under pressure to contain the cost of running complex technology estates while simultaneously investing in network modernization, digital customer experience and new monetization methods. They still use providers for labor arbitrage, but increasingly, they look for the ability to redesign and automate processes for measurable benefits in terms of services, costs and revenue.

The focus is shifting from technology adoption to the engineering, integration and governance required to achieve these outcomes at scale. CSPs are embracing open, standardized architectures so they can implement network capabilities systematically and reduce the effort of architectural coupling. Global operators aim to balance centralization with the flexibility to adapt to local networks and regulations.

The operating models emerging at leading CSPs unify network engineering, software development and cloud infrastructure, along with operations and business support systems (OSS/BSS). Within these environments, AI cost-effectively supports resilience through root cause analysis and faster time to repair, protecting service-level agreement performance. This requires a framework that maintains context across service chains, along with observability, workflow orchestration, data governance and policy controls.

“Telecom operators are industrializing AI,” said Yash Jethani, ISG principal analyst and lead author of the report. “Instead of seeking partners for individual deployments, they are looking for providers with reusable automation foundations to repeatedly implement closed-loop operations in production.”

The reports also explore other telecommunications technology trends, including increasing need for multi-orbit network management for satellites and the convergence by established aerospace leaders on flexible, software-defined satellite architectures.

For more insights into the transformation and operations challenges faced by telecommunications enterprises, along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.

The Telecom Transformation and Engineering Services report evaluates 45 providers across two quadrants: AI Led Telco Engineering & Software Services and Satellite & Non-Terrestrial Network (NTN) Services.

The report names Accenture, Capgemini and Tech Mahindra as Leaders in both quadrants. It names Airbus Defence and Space, Akkodis, Amdocs, Cognizant, HCLTech, Hitachi Digital Services, IBM, INDRA (Indra Sistemas), Infosys, Kratos Defense and Security Solutions, Leidos, Leonardo, LTTS, Persistent Systems, Prodapt, ST Engineering iDirect, Thales and UST as Leaders in one quadrant each.

In addition, CGI, HCLTech, Infinite Computer Solutions and Virtusa are recognized as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

The Telecom Autonomous IT and Business Operations Services report evaluates 45 providers across two quadrants: Autonomous Telecom IT and Business Operations and AI-Driven Telecom Customer and Revenue Operations.

The report names Accenture, Capgemini, Cognizant, IBM, Infosys and TCS as Leaders in both quadrants. It names Amdocs, CGI, Concentrix, DXC Technology, HCLTech, Prodapt, Sutherland, Tech Mahindra, Tech Mahindra + Comviva, TP, Virtusa and Wipro as Leaders in one quadrant each.

In addition, Genpact, Prodapt and Sutherland are recognized 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, NetoAI is named the global ISG CX Star Performer for 2026 among Telecom, Media and Entertainment AI-Native Transformation Services – Telecom Transformation and Engineering Services providers. NetoAI 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 CGI, Persistent Systems, Prodapt and Techwave.

The 2026 ISG Provider Lens global Telecom Transformation and Engineering Services report is available to subscribers or for one-time purchase on this webpage. The Autonomous IT and Business Operations Services report is available here.