ISG Provider Lens report says providers are helping organizations improve work with services and solutions that fit their needs and technological maturity
Enhancing employee experience (EX) has become a major focus of enterprises around the world as they enter the age of hybrid work and face a range of challenges in attracting and retaining talent, according to a new research report published by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
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“The ecosystem of service and solution providers is expanding and diversifying to meet the needs of different types of organizations.”
The 2022 ISG Provider Lens™ Future of Work — Services and Solutions Archetype report finds that companies began seeking ways to improve EX through technology even before the COVID-19 pandemic, but the rapid changes of the past few years have accelerated the search for effective workplace solutions and services. Firms have also begun using digital transformation to meet the needs of young, digital-native workers who expect employers to use modern technologies and to pursue a higher purpose.
Widespread talent shortages, fueled in part by the Great Resignation that was triggered by the pandemic, have made enhancing EX even more essential for growth and competitiveness, the report says. These shortages make continuous reskilling and cross-skilling necessary.
“The disruptions of the past several years have significantly changed how enterprises use workplace technologies,” said Iain Fisher, global lead, Future of Work and Customer Experience, for ISG. “The ecosystem of service and solution providers is expanding and diversifying to meet the needs of different types of organizations.”
Technology vendors and managed service providers are increasingly focused on both enhancing EX and measuring it, ISG says. Many clients are beginning to pursue engagements with providers based on experience level agreements (XLAs) — designed to meet expectations for how products and services actually affect EX — rather than on traditional service level agreements (SLAs).
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Enterprises’ use of technology to improve EX is influenced by several factors, including technological maturity and the scope of EX efforts, which affects the degree to which technologies are integrated into their core business, the report says.
The 2022 ISG Provider Lens™ Future of Work — Services and Solutions Archetype report examines four different types of clients, or archetypes, that are adopting services and solutions to enable the future of work. The report evaluates the capabilities of 20 providers to deliver services and solutions to the four archetypes:
EX Explorer Archetype: These enterprises are beginning the transition from SLA-based to XLA-based engagements with providers. While still focused on reducing costs and optimizing operations, they are also starting to use technology to improve EX. These organizations have not fully integrated technology functions into their overall business and are mostly seeking end-user computing (EUC) tools and service desk services.
Tech EX Evangelists Archetype: Enterprises in this archetype have some knowledge of experience-level indicators. They aim to enhance employees’ experience of their interaction with IT, both by introducing automation and by helping employees adopt new technologies. These clients measure success in terms of improved business processes and enhanced and measurable EX.
Line of Business-EX Focused Archetype: At these organizations, end-user and workplace technologies are deeply integrated and strongly influence line-of-business operations. The same technologies affect both customer and employee experience. These organizations have mature workplace technologies and have advanced from a traditional EUC model to pursuing end-to-end business transformation.
Corporate EX Focused Archetype: These enterprises have a sharp focus on EX in terms of the corporate-employee relationship. They aim to enhance EX through employees’ development and their association with the organization and what it stands for. Through technology, these organizations connect global workforces, support initiatives such as diversity and inclusivity and ensure workers are in sync with corporate values.
Among the providers ISG evaluated, Atos is named as a Leader across all four archetypes. Capgemini, HCLTech and Infosys are named as Leaders across three archetypes each. DXC Technology, Fujitsu, Kyndryl, LTIMindtree, TCS, Unisys and Wipro are named as Leaders for two archetypes each. Accenture, Birlasoft, Coforge, Hexaware, Microland, Mphasis, Tech Mahindra, UST and Zensar are named as Leaders for one archetype each.
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