U.S. Public Sector Sharpens Focus on Modernizing Work
AI plays growing role as agencies adopt new technologies for hybrid work, collaboration, constituent services, ISG Provider Lens™ report says
Public-sector organizations in the U.S. continue to explore and adopt new workplace technologies as part of broad digital transformations to meet new operational requirements, 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. Public Sector finds that state, local and educational (SLED) agencies are now better equipped to carry out rapid workplace changes after navigating the chaos triggered by the COVID-19 pandemic. However, many are still investigating the new capabilities they will need to meet the changing expectations of employees and constituents.
"Emerging technologies are reshaping collaboration and workplace management in U.S. public agencies," said Nathan Frey, partner at ISG. "Moving away from legacy systems is crucial to fulfilling their missions, but it requires careful preparation and often outside assistance."
SLED organizations are facing the need to support increasingly remote and hybrid workforces while giving constituents more ways to reach agencies and receive services, ISG says. Due to the nature of their services, many agencies' workplaces have effectively expanded to include their constituents. Modern tools must be integrated into IT estates that in many cases are still dominated by decades-old systems. Impending deadlines for federal funding offered in the wake of the pandemic make these efforts more urgent.
Agencies are exploring or implementing a wide range of services and technologies to prepare for new and future requirements, the report says. These include workflow automation to streamline routine tasks, advanced data analytics to improve decision-making, and unified communication and collaboration (UCaaS) platforms to help employees work together regardless of location. Cybersecurity needs to be integrated across all systems for user authentication, threat prevention and data protection.
AI is becoming an important tool for building out these capabilities, ISG says. Organizations are tapping AI-enabled tools for secure collaboration, risk analysis and mitigation and personalized constituent services. Generative AI (GenAI) may accelerate modernization through copilots, voice assistants and private large language models (LLMs) that automate workflows to resolve issues more quickly. However, public agencies may need to comply with strict regulations on GenAI covering data privacy and other issues.
The public sector's adoption of hybrid work has spurred demand for secure, centrally managed provider services that empower employees to work anywhere on a variety of devices. Outsourcing has helped many organizations reduce costs, work around IT skill shortages, migrate to the cloud, integrate AI and navigate data regulations. A growing number of agencies have even engaged service providers for some public-facing services, especially tier 1 support calls.
"Outsourcing is new to many public agencies," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "Providers that understand public-sector needs can help clients succeed in the transition."
The report also explores other workplace trends in the U.S. public sector, including rising demand for sustainable digital workplace solutions and device-as-a-service (DaaS) offerings.
For more insights into the workplace technology challenges of U.S. public-sector organizations, including overburdened IT staff and fragmented implementations of digital workplace tools, plus ISG's advice on overcoming 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. Public Sector evaluates the capabilities of 31 providers across five quadrants: Workplace Strategy and Enablement Services, Collaboration and Next-gen Experience Services, Managed End-user Technology Services, Continuous Productivity Services (including Next-gen Service Desk) and Smart and Sustainable Workplace Services.
The report names Accenture, Infosys, NTT DATA and Unisys as Leaders in all five quadrants. It names CGI and HCLTech as Leaders in four quadrants each. Kyndryl is named as a Leader in three quadrants. Deloitte and Zones are named as Leaders in two quadrants each, and KPMG and Red River are named as Leaders in one quadrant each.
In addition, Capgemini and HCLTech 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, 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 NTT DATA, Unisys and Zones.
The 2024 ISG Provider Lens™ Future of Work Services report for the U.S. Public Sector 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.
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