Enterprises in the U.K. are increasingly adopting advanced AI capabilities on AWS while placing greater emphasis on security and data sovereignty as they modernize their IT environments, 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 2026 ISG Provider Lens® AWS Ecosystem Partners report for the U.K. finds that rising demand for cloud-native solutions is changing enterprise technology requirements. As organizations seek greater efficiency and cost flexibility, they are turning to specialized providers for application development, infrastructure management and regulatory compliance expertise.
“Cloud adoption is becoming as much an operational challenge as a technology decision for U.K. enterprises,” said Rakesh Parameshwara, director at ISG. “Companies also need expertise in controlling costs and maintaining secure, reliable operations.”
Enterprises in the U.K. are adopting more structured management practices as their AWS environments expand, the report says. Informal, project-based approaches can lead to inconsistent architectures, inadequate documentation and uncontrolled costs. To address these risks, companies are establishing standardized operating models and using financial operations (FinOps) practices to strengthen oversight of cloud spending. They are also introducing infrastructure-as-code and automation to improve consistency and simplify routine operations. These measures allow organizations to maintain more predictable and scalable environments, reduce manual effort and keep technology spending under control.
Security and regulatory requirements are becoming more important in cloud provider selection, particularly among financial institutions and public sector organizations, ISG says. Businesses handling sensitive information increasingly expect providers to demonstrate that they can securely manage resilient, business-critical workloads while meeting compliance obligations. They are seeking continuous monitoring, stronger identity controls and proven approaches to data protection. Questions about digital sovereignty are also receiving greater attention amid geopolitical developments that are shaping perceptions of U.S. technology suppliers. Organizations are consequently giving greater consideration to providers with U.K.-based operations and expertise in meeting local regulatory requirements.
Companies in the U.K. increasingly are using generative AI to modernize legacy applications and improve business processes. Rather than limiting initiatives to experimentation, organizations are examining ways agentic AI can automate complex processes and support decision-making in operations. They are also exploring AI-enabled solutions to modernize customer service and make existing applications more efficient. However, implementing these capabilities at scale requires robust data foundations, governance and regulatory compliance. Enterprises expect partners to demonstrate practical expertise in deploying AI solutions that deliver measurable business outcomes.
“Businesses in the U.K. are looking beyond initial cloud migrations toward sustained improvements in how their technology supports operations,” said Frank Heuer, ISG principal analyst lead author of the report. “Service providers that combine technical knowledge with industry expertise and clear accountability will be better positioned to meet these expectations.”
The report also explores other trends in the AWS ecosystem in the U.K., including the growing importance of integrated consulting and migration services and the evolution of data platforms to support more informed business decisions.
For more insights into the AWS-related challenges faced by enterprises in the U.K., plus ISG’s advice for addressing them, see the ISG Provider Lens® Focal Points briefing here, see the ISG Provider Lens Focal Points briefing here.
The report evaluates the capabilities of 46 providers across four quadrants: AWS Professional Services, AWS Managed Services, AWS Data Lifecycle Management Services and AI-Powered Business Transformation with AWS.
The report names Accenture, Capgemini, Cognizant, DXC Technology, HCLTech, TCS, Version 1 and Wipro as Leaders in all four quadrants. It names NTT DATA and Tech Mahindra as Leaders in three quadrants each. Hexaware is named as a Leader in two quadrants, and Atos, Coforge, LTM and Mastek are named as Leaders in one quadrant each.
In addition, Brillio, LTM and Scale Factory 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, MHP is named the global ISG CX Star Performer for 2026 among AWS service providers. MHP 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 Version 1 and Scale Factory
The 2026 ISG Provider Lens AWS Ecosystem Partners report for the U.K. is available to subscribers or for one-time purchase on 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 and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261028881537/en/
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