1371489--3/8/2010--Information_Services_Group

related topics

{customer, product, revenue}

{personnel, key, retain}

{stock, price, share}

{product, market, service}

{system, service, information}

{operation, international, foreign}

{property, intellectual, protect}

{product, candidate, development}

{condition, economic, financial}

{debt, indebtedness, cash}

{control, financial, internal}

{stock, price, operating}

{interest, director, officer}

{competitive, industry, competition}

{cost, operation, labor}

{loss, insurance, financial}

{cost, contract, operation}

The loss of key executives could adversely affect our business. If we are unable to maintain a current prospectus relating to the common stock underlying our warrants, our warrants may have little or no value and the market for our warrants may be limited. We may choose to redeem our outstanding warrants at a time that is disadvantageous to our warrant holders. Our outstanding warrants may be exercised in the future, which would increase the number of shares eligible for future resale in the public market and would result in dilution to our stockholders. This might have an adverse effect on the market price of the common stock. If the private placement prior to the IPO was not conducted in compliance with applicable law, the ISG Inside Stockholders may have the right to rescind the warrants purchased in the private placement. To complete the acquisition, we incurred a substantial amount of debt, which may limit our ability to fund general corporate requirements and obtain additional financing, limit our flexibility in responding to business opportunities and competitive developments and increase our vulnerability to adverse economic and industry conditions. Failure to maintain effective internal controls over financial reporting could adversely affect our business and the market price of our Common Stock. Our operating results have been adversely impacted by the worldwide economic crisis and credit tightening. The rate of growth in sourcing activity and/or the use of technology in business may fall significantly below the levels that we currently anticipate. Our engagements may be terminated, delayed or reduced in scope by clients at any time. Our operating results may fluctuate significantly from period to period as a result of factors outside of our control. We depend on project-based advisory engagements, and our failure to secure new engagements could lead to a decrease in our revenues. We may not be able to maintain our existing services and products. We may not have the ability to develop and offer the new services and products that we need to remain competitive. We may fail to anticipate and respond to market trends. We may be unable to protect important intellectual property rights. We face competition and our failure to compete successfully could materially adversely affect our results of operations and financial condition. We rely heavily on key members of our management team. We depend upon our ability to attract, retain and train skilled advisors and other professionals. We may have agreements with certain clients that limit the ability of particular advisors to work on some engagements for a period of time. In many industries in which we provide sourcing advisory services, there has been a trend toward business consolidations and strategic alliances that could limit the pool of potential clients. We derive a significant portion of our revenues from our largest clients (including those in the automobile sector) and could materially and adversely be affected if we lose one or more of our large clients. Our international operations expose us to a variety of risks which could negatively impact our future revenue and growth. We operate in a number of international areas which exposes us to significant foreign currency exchange rate risk. We may be subject to claims for substantial damages by our clients arising out of disruptions to their businesses or inadequate service and our insurance coverage may be inadequate. We could be liable to our clients for damages and subject to liability and our reputation could be damaged if our client data is compromised. Client restrictions on the use of client data could adversely affect our activities. We may not be able to maintain the equity in our brand name.

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1371489--3/8/2010--Information_Services_Group_Inc.