STAMFORD, Conn.--(BUSINESS WIRE)--Retail and consumer packaged goods (CPG) companies in the U.S. are recognizing the need to keep evolving in response to growing and shifting consumer demands, new technologies and increasing regulation, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2024 ISG Provider Lens™ Retail & CPG Services report for the U.S. finds competitiveness in these industries requires data-enabled agility and being able to keep both customers and employees happy. With the growth of e-commerce, customers of every brand consistently find new, competing options online.
“Retail and consumer products companies are finding that comprehensive, customer-centric strategies are essential,” said Sunder Pillai, ISG Retail & CPG practice leader. “They are partnering with providers to plan and execute these strategies while controlling costs.”
Following pandemic-era disruptions, the mix of online and brick-and-mortar outlets continues to change and consumer behavior is still evolving, the report says. Companies need more data, with better analysis, to accurately monitor and predict demand and inventory and personalize customer experiences. Changing business requirements are driving companies to the cloud for both scale and cost savings.
To meet consumer demands for seamless experiences spanning online and in-store shopping, U.S. retail and CPG firms are adopting integrated inventory management and order fulfillment systems, ISG says. They are also implementing customer data platforms that combine multiple data sources and use AI to make recommendations. With help from extended reality (XR) consultants, brands are using AR and VR for digital-plus-reality experiences—for instance, virtually trying on clothing.
Fragmented data privacy laws in the U.S. are expected to cohere into stronger national regulations on data collection, storage and use, the report says. Enterprises are responding by adopting data governance platforms and management services from trusted providers. As labor regulations change, some are also using workforce management platforms to help them adapt. Increasing regulation of sustainability measures, such as waste reduction and eco-friendly packaging, are increasing the use of tracking and reporting tools.
Automation is boosting the efficiency of retail and CPG operations through tools such as robotic warehouse assistants and generative AI (GenAI), but companies are taking steps to maintain the human touch where necessary, ISG says. With learning management systems, some are helping employees develop skills for the new environment.
“GenAI is part of every conversation about the future of retail,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Companies seek providers to help them determine how GenAI will ultimately benefit their business.”
The report also explores other trends in the U.S. retail and CPG industry, including the rising use of robotic process automation (RPA) and the growing importance of workforce management tools for optimal employee scheduling.
For more insights into the challenges facing U.S. retail and CPG companies, including transforming business practices for continuous improvement and ensuring responsible sourcing, plus ISG’s advice on solving them, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ Retail & CPG Services report for the U.S. evaluates the capabilities of 33 providers across four quadrants: Business Transformation Services, Digital Innovation Services, Platform Modernization Services and Managed Services.
The report names Accenture, Capgemini, Cognizant, Deloitte, HCLTech, Infosys, KPMG, TCS and Wipro as Leaders in all four quadrants. It names IBM and Kyndryl as Leaders in two quadrants. LTIMindtree is named as a Leader in one quadrant.
In addition, LTIMindtree is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in three quadrants. UST is named as a Rising Star in two quadrants. Genpact and Sutherland are named as Rising Stars in one quadrant each.
In the area of customer experience, HCLTech is named the global ISG CX Star Performer for 2024 among Retail & CPG Services providers. HCLTech 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.
The 2024 ISG Provider Lens™ Retail & CPG 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, 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 (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 AI and 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.
