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U.S. Agencies Embrace Services to Modernize Workplaces

U.S. are adopting more digital workplace services in response to changing employee and constituent needs, according to a new research report published by Information Services Group (ISG) a leading global technology research and advisory firm.

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“The public sector has an unprecedented need and opportunity to modernize the workplace”

The 2023 ISG Provider Lens™ Future of Work (Workplace) Services report for the U.S. public sector finds that major developments over the past few years, including remote work modes introduced during the COVID-19 pandemic, a wave of retirements and an influx of federal funds to pay for digital transformation, have changed the game for workplace technologies at U.S. state, local and educational (SLED) organizations.

“The public sector has an unprecedented need and opportunity to modernize the workplace,” said Nathan Frey, partner and lead, ISG Public Sector, in the U.S. “The advances SLED organizations are making through sourcing will improve the experiences of both employees and the constituents they serve.”

Since the beginning of the pandemic, remote work has quickly gone from an experiment to a necessity, while online has become the default mode for most members of the public to engage with government, the report says. SLED organizations have accelerated cloud migrations, making cloud IT the norm for many, and have adopted an expanding array of digital services and tools for collaboration and communication.

Public agencies have grown more interested in using automation and AI to address employee shortages, augmenting and in some cases replacing staff positions in areas such as IT support, ISG says. Some are experimenting with AI-powered chatbots for employee and constituent support, while advanced data analytics has become essential to improving processes. By partnering with leading providers, they can now start to take advantage of large language models to extend their analytics capabilities.

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The public sector’s expanding use of the cloud and mobile devices to enable remote work has raised some cybersecurity and data privacy concerns after quick, loosely controlled implementations of mobile applications and web interfaces during the pandemic created security nightmares for some organizations, the report says. This trend, along with increasing regulation, is driving more agencies to impose stronger security measures across increasingly complex hybrid IT and work environments.

“Cybersecurity is still a steep challenge for SLED organizations,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “By integrating security in their offerings, especially managed services, providers are introducing broad, adaptable security capabilities.”

The report also explores other public-sector workplace trends, including the need to integrate new tools with legacy systems and scale services up and down as workloads change.

The report names Accenture, Infosys, Kyndryl and Unisys as Leaders in all three quadrants. It names CGI as a Leader in two quadrants and Deloitte, KPMG, NTT DATA and Tech Mahindra as Leaders in one quadrant each.

In addition, HCLTech is named as a Rising Star — a companies with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. DXC Technology and Zones are named as Rising Stars in one quadrant each.

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 [To share your insights with us, please write to sghosh@martechseries.com] 

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