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The 2024 ISG Provider Lens™ Future of Work Services report for Australia reveals that Australian enterprises are increasingly adopting AI and analytics in digital workplace solutions to boost productivity and competitiveness. Companies are replacing legacy applications with AI, ML, and generative AI (GenAI) solutions to enhance flexibility and productivity.

Key trends highlighted in the report include:

• Exploration of large language models (LLMs) in service desks
• Adoption of platform-centric mindsets for seamless integration
• Investment in collaboration tools for hybrid work environments
• Growing interest in unified communication as a service (UCaaS)
• Increased use of AI-enabled automation in service desk operations
• Focus on sustainable workplaces and ESG goals

The report evaluates 37 providers across five quadrants, naming several companies as Leaders in various categories. It also addresses challenges such as cybersecurity concerns in remote work settings.

The 2024 ISG Provider Lens™ Future of Work Services report for the U.S. Public Sector highlights the ongoing digital transformation in state, local, and educational (SLED) agencies. These organizations are adopting new workplace technologies to meet changing operational requirements and constituent expectations. Key focus areas include:

1. Supporting remote and hybrid workforces
2. Implementing workflow automation and advanced data analytics
3. Adopting unified communication and collaboration (UCaaS) platforms
4. Integrating cybersecurity across all systems
5. Leveraging AI for secure collaboration and personalized services

The report also notes an increased demand for outsourcing services to reduce costs, address IT skill shortages, and navigate data regulations. Accenture, Infosys, NTT DATA, and Unisys are named as Leaders across all five quadrants evaluated in the report.

Organizations in the U.K. are preparing for greater adoption of generative AI within the next 12-18 months as part of their workplace transformation programs, according to the 2024 ISG Provider Lens™ Future of Work – Services report. Companies are seeking help from service providers to identify GenAI use cases, conduct pilot deployments, develop language models, and create governance frameworks.

This trend is part of ongoing workplace transformations spurred by the COVID-19 pandemic and the rise of hybrid work. Over half of new job listings in the U.K. now offer remote work options. Factors driving this change include global economic challenges, talent shortages, and recent labor unrest.

Organizations are focusing on experience management (XM) services to oversee interconnected systems, promote workforce productivity, and identify friction points in digital transformation. While cost savings remain a primary driver, companies also aim to improve productivity, sustainability, and employee experience across digital workplace services.

The Asia Pacific IT and business services market continued to grow in Q3 2023, albeit at a slower pace compared to Q2, according to the ISG Index™. The combined market ACV rose 10% year-over-year to US $4.6 billion, but decreased 5% from Q2. Managed services ACV increased 17% year-over-year to US $794 million, while cloud-based services grew 8% to US $3.8 billion.

Key highlights include:

• 57 managed services contracts awarded, up 36% year-over-year
• IT outsourcing ACV rose 18% to US $622 million
• Business process outsourcing up 12% to US $173 million
• Infrastructure-as-a-Service ACV increased 8% to US $3.3 billion
• Software-as-a-Service ACV grew 14% to US $444 million

ISG maintains its 2024 forecast of 2% growth for managed services and 14% for XaaS, with stronger growth expected in 2025.

The 2024 ISG Provider Lens™ Future of Work Services report for the U.S. reveals that enterprises are cautiously optimistic about workplace management amid economic uncertainty and the growing potential of generative AI (GenAI). Key findings include:

1. Most organizations have embraced hybrid work and are adopting new technologies to remain competitive and keep employees satisfied.

2. Less than half of large U.S. companies now require employees to be in the office five days a week.

3. AI has become a key component in unified communications and collaboration (UCC) technology, enhancing employee experience and productivity.

4. U.S. enterprises are increasingly seeking bundled provider contracts that combine workplace services with large-scale digital or business transformation.

5. The report evaluates 52 providers across six quadrants, naming several companies as Leaders in multiple categories.

The 2024 ISG Provider Lens™ AWS Ecosystem Partners report for Germany highlights the growing demand for data modernization and analytics among German organizations, driving them to seek support from AWS ecosystem providers. Key findings include:

1. Data analytics is increasingly seen as important for business success.
2. AWS partners are leveraging automation and AI to implement solutions for complex data analysis.
3. The cloud-native market in Germany is expanding, with midsize companies representing a growing segment.
4. German organizations are cautious about running SAP solutions in the public cloud, but AWS is becoming a preferred platform for those who have migrated.
5. The report evaluates 47 providers across four quadrants, naming several as Leaders in multiple categories.

The EMEA ISG Index™ reports that Europe's IT and business services market showed strong momentum in Q3 2023, with combined market ACV reaching a record US $8.9 billion, up 32% year-over-year. Managed services ACV climbed 35% to US $4.9 billion, while XaaS ACV rose 27% to US $4.04 billion. The market has grown sequentially for four straight quarters since Q3 2022.

Key highlights include:

• Record 305 managed services contracts signed in Q3
• Six mega deals worth US $1.1 billion in total ACV
• Strong growth in ITO (32%) and BPO (46%) sectors
• XaaS segment exceeded US $4 billion for the first time
• DACH region saw exceptional growth due to three high-value mega deals

ISG maintains its 2024 forecast of 2% growth for managed services and 14% for XaaS, with stronger growth expected in 2025.

The 2024 ISG Provider Lens™ global Future of Work Solutions report reveals that enterprises are adopting AI-enhanced tools to improve hybrid work productivity. Companies are focusing on providing employees with seamless end-user technology experiences as they adapt to new work models post-pandemic. Key findings include:

1. Digital Employee Experience (DEX) platforms are replacing traditional IT monitoring tools, offering full visibility into hardware and applications.

2. AI integration is enabling AIOps capabilities, including anomaly detection, problem prediction, and task automation.

3. Connected and collaborative work solutions are helping manage dispersed workforces and projects more effectively.

4. AI is enhancing collaboration management and productivity through workflow automation and personalization.

The report evaluates 42 providers across two quadrants: DEX Solutions and Connected and Collaborative Work Solutions, naming several Leaders and Rising Stars in each category.

ISG Index™ reports that IT and business services growth in the Americas was driven by cloud-based services demand in Q3, particularly fueled by interest in GenAI. The combined market ACV rose 7% to $13.2 billion, with XaaS spending climbing 29% to nearly $8.0 billion. However, managed services ACV fell 15% to $5.2 billion.

Key highlights:

• XaaS ACV exceeded $7 billion for the second straight quarter
• Managed services contract volume down 15% from prior year
• Three mega-deals signed, down from four in the prior year
• BFSI sector spending slowed, while manufacturing, retail, and travel sectors showed growth
• IaaS ACV climbed 44% to $5.6 billion, SaaS up 3% to $2.3 billion

ISG maintains its 2024 forecast of 2% growth for managed services and 14% for XaaS, with stronger growth expected in 2025.