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U.S. Firms Make Workplace Investments That Deliver Results

Amid economic uncertainty, companies turn to service providers for help improving employee experience, ISG Provider Lens™ report says

As enterprises in the U.S. tighten spending due to worries about a possible economic downturn, they are sharpening their focus on employee experience and investing in workplace technology services that deliver tangible business benefits or reduce costs, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ Future of Work (Workplace) Services report for the U.S. identifies growing macroeconomic concerns and recent major developments in artificial intelligence as significant new trends influencing workplace-technology-buying decisions this year. The major issues ISG identified last year, around the rise of hybrid work, concerns about sustainability and ensuring a tech-savvy workforce, continue to affect investment decisions.

“Companies are putting their money where they expect rapid results,” said Dee Anthony, leader, ISG Workplace of the Future. “Many are holding off on technologies that might take longer to deliver benefits, such as blockchain and the metaverse.”

U.S. enterprises are starting to recognize that outstanding employee experience (EX) leads to better customer experience (CX), the report says. Decisions about allowing remote and hybrid work increasingly are guided by considerations around employee mental health as well as productivity, and human resources departments play a growing role in workplace technology choices.

AI has become a major part of the digital workplace, along with analytics and automation, for providing proactive and preemptive support to users, the report says. With rising interest in large language models such as ChatGPT, almost all unified communications and collaboration technology providers have started implementing generative AI in their products. The emerging technology offers the potential for human-like insights that could improve service desk operations through capabilities such as enabling employees to auto-resolve their IT issues.

U.S enterprises are engaging with workplace managed service providers in three main areas, ISG says. They seek providers that can fulfill an overarching requirement for improved EX, with well-defined experience service levels. In addition, they want providers to offer end-user technology management that supports hybrid and remote work, ensuring uninterrupted technology access, and to enable user self-help.

“We expect large U.S. companies to shift from a traditional device-centric desktop environment to a digital workplace centered on experiences,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers recognize the need for improved EX and are stepping up to help clients achieve it.”

The report also explores other workplace trends in the U.S., including enterprises’ efforts to elevate their security postures for remote work and the increasing demand for dedicated midmarket service offerings with innovative pricing models.

For more insights into the workplace challenges of U.S. companies, including how to ensure similar EX for all employees, whether onsite or remote, see the ISG Provider Lens™ Focal Points briefing here.

The 2023 ISG Provider Lens™ Future of Work (Workplace) Services report for the U.S. evaluates the capabilities of 35 providers across four quadrants: Employee Experience (EX) Transformation Services, Managed Workplace Services – End-User Technology (Large Accounts), Managed Workplace Services – End-User Technology (Mid-Market), and Digital Service Desk and Workplace Support Services.

The report names Unisys as a Leader in all four quadrants. It names HCLTech, Infosys, TCS and Wipro as Leaders in three quadrants each. Atos, Cognizant, DXC Technology, Kyndryl, NTT DATA, Tech Mahindra and Zensar Technologies are named as Leaders in two quadrants each. Accenture, Capgemini, Compucom, Hexaware, LTIMindtree and Pomeroy are named as Leaders in one quadrant each.

In addition, Atos, Capgemini and Cognizant are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

Customized versions of the report are available from Hexaware and Lenovo.

The 2023 ISG Provider Lens™ Future of Work (Workplace) Services report for the U.S. 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, 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.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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