Companies are giving employees more flexibility and a better experience after the disruptions of COVID-19 and the ‘Great Resignation,’ ISG Provider Lens report says
The transformation of workplaces over the past two years has led U.S. enterprises to create more flexible, collaborative work environments to better attract and retain employees, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
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“Now they are defining business and operating models at companies facing rapid changes in work styles and environments.”
The 2022 ISG Provider Lens Future of Work — Services and Solutions report for the U.S. finds many organizations in the U.S. are already successfully moving toward a modern workplace, while others have plans for digital workplace transformations to ensure business continuity and growth. Companies are focused on enhancing communication and employee well-being and managing cultural shifts among different generations of workers, ISG says.
“U.S. enterprises want to design experiences that meet the expectations of employees for consistency of service, regardless of location or device, and ease of use,” said Jim Kane, director, Collaboration and Experience at ISG. “Many enterprises are seeking service providers to help them develop workplace transformation strategies that cover a range of channels and ensure the service experience is secure.”
Since the COVID-19 pandemic disrupted the way most employees in the U.S. worked, many companies have embraced hybrid work models, ISG says. Even though office-based work often has advantages for employee socialization and engagement, research shows employees in the U.S. generally prefer to work from the location of their choice.
This preference was even a significant factor behind the “Great Resignation,” in which millions of U.S. workers quit their jobs in 2021, creating shortages of skilled labor, the report says. Many companies began their transitions to more flexible work environments in response to this shakeup, and their initiatives have helped to lower the rate of churn among employees.
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In the wake of the pandemic, employers of frontline workers who provide essential services are attracting employees and enhancing their experience through digital enablement, which is necessary both for productivity and to create a sense of belonging, ISG says.
Environmental and social concerns, especially among younger workers, are forcing U.S. companies to focus on multiple issues at once, including sustainability, diversity and work flexibility, the report says. With technology playing a growing role in workplace experiences, the role of IT is shifting.
“IT departments used to be known only for resolving technology issues,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Now they are defining business and operating models at companies facing rapid changes in work styles and environments.”
The report also explores other U.S. trends in the future of work, including the growing importance of automation and the impact of bring-your-own-device policies.
For more insights into the future of work in the U.S., including the gradual migration from service level agreements (SLAs) to experience level agreements (XLAs), and advice on how to meet new workforce expectations, see the ISG Provider Lens™ Focal Points briefing here.
The 2022 ISG Provider Lens™ Future of Work — Services and Solutions report for the U.S. evaluates the capabilities of 37 providers across five quadrants: Workplace Strategy Transformation Services, Managed Workplace Services — End User Technology — Large Accounts, Managed Workplace Services — End User Technology — Midmarket, Digital Service Desk and Workplace Support Services, and Managed Employee Experience Services.
The report names HCL, Infosys, TCS, Unisys and Wipro as Leaders in four quadrants each and Accenture, DXC Technology and Kyndryl as Leaders in three quadrants each. It names Compucom, Hexaware, LTI, Tech Mahindra and Zensar as Leaders in two quadrants each and Atos, Capgemini, Movate and NTT DATA as Leaders in one quadrant each.
In addition, DXC Technology and Tech Mahindra are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
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