GenAI Raises U.S. Companies’ Hopes for Future of Work

Enterprises see emerging GenAI use cases improving employee experience, a major focus after pandemic-era changes, ISG Provider Lens™ report says

STAMFORD, Conn.--()--Enterprises in the U.S. are cautiously optimistic about workplace management amid macroeconomic uncertainty and the growing potential of generative AI (GenAI), 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™ Future of Work Services report for the U.S. finds that workplaces stabilized in 2023 following the COVID-19 pandemic but are still affected by the changes it brought about. Most organizations have embraced hybrid work, and many are adopting new technologies and modes of operation to remain competitive and keep employees satisfied.

“Policies about where employees can work have profoundly affected how workplace leaders choose technologies and management approaches,” said Dee Anthony, Americas lead, Future of Work, for ISG. “U.S. firms are taking advantage of promising advances that could improve operational efficiency and individual productivity.”

After strict return-to-office policies imposed by major technology companies in late 2023 inspired some U.S. enterprises to follow suit, those moves backfired in many industries, leading to loss of talent, the report says. Changing regulations also made it easier for dissatisfied workers to leave. Now, less than half of large U.S. companies force employees to be in the office five days a week.

AI has influenced all aspects of digital workplace technology that affect employee experience, which remains a key priority for enterprise IT, ISG says. Every provider of unified communications and collaboration (UCC) technology has incorporated GenAI into its products or services, and AI has become a key component of everyday individual productivity and connection with co-workers. Among other things, GenAI can make service desk agents more efficient and reduce the cost of workplace support.

While U.S. companies are leading adopters of most technologies and optimistic about GenAI, uncertainty about future regulations on data privacy and other issues has slowed the broad adoption of GenAI somewhat, ISG says.

A growing number of U.S. enterprises are seeking bundled provider contracts that combine workplace services, such as device management and field support, with large-scale digital or business transformation, the report says. These contracts are growing in both number and value, indicating that workplace services are no longer horizontal IT offerings but increasingly focused on industry verticals.

“As U.S. companies change how they work, the role of decision-makers in this area is expanding,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Choices around workplace technology and service providers are critical to enterprise strategy.”

The report also explores other workplace trends affecting U.S. companies, including the varied expectations of different generations of workers and the growing importance of sustainable digital workplace technologies.

For more insights into workplace challenges faced by U.S. enterprises, including deciding which employees should work remotely and how to outsource workplace management services, plus ISG’s advice on how to resolve these issues, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Future of Work Services report for the U.S. evaluates the capabilities of 52 providers across six quadrants: Workplace Strategy and Enablement Services, Collaboration and Next-gen Experience Services, Managed End-user Technology Services — Large Accounts, Managed End-user Technology Services — Local Specialists, Continuous Productivity Services (including Next-gen Service Desk) and Smart and Sustainable Workplace Services.

The report names HCLTech, Infosys, TCS, Unisys and Wipro as Leaders in five quadrants each. It names DXC Technology, Kyndryl and NTT DATA as Leaders in four quadrants each. Cognizant is named as a Leader in three quadrants. Accenture, CompuCom, Stefanini and Tech Mahindra are named as Leaders in two quadrants each. Bell Techlogix, Deloitte, Hexaware, LTI Mindtree, Pomeroy and Zensar Technologies are named as Leaders in one quadrant each.

In addition, Tech Mahindra is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Cognizant, Hexaware, Kyndryl and Lenovo 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 workplace 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.

Customized versions of the report are available from Bell Techlogix, Lenovo, Stefanini and Unisys.

The 2024 ISG Provider Lens™ Future of Work 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, 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.

Contacts

Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
isg@matternow.com

Release Summary

Enterprises in the U.S. are cautiously optimistic about workplace management amid macroeconomic uncertainty and the potential of GenAI, ISG says.

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Contacts

Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
isg@matternow.com