U.S. Firms Use Microsoft Cloud Tools to Compete for Workers

U.S. enterprises are increasingly adopting cloud platforms like Microsoft 365 and Teams to enhance employee experience, driven by a tight labor market and pandemic-related shifts.

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04/25/2022 - 10:27 AM EDT

Platforms for cloud-based work are becoming essential as employees demand remote options and a better experience, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- The need to improve employee experience in a tight labor market is one of the main reasons U.S. enterprises are adopting cloud platforms such as Microsoft 365 and Teams, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Microsoft Ecosystem Partners report for the U.S. finds the COVID-19 pandemic has changed the workforce for U.S. enterprises, both in shrinking the talent pool and in leading employees to demand more work flexibility. Following the massive shift to working from home, many employees have re-examined their careers and chosen to retire or change fields. Many who still want to work insist companies offer permanent remote or hybrid work.

By moving to the cloud, enterprises get access to platforms for remote collaboration and learning that make the employee experience more appealing, helping them attract and retain workers, ISG says.

“To stay resilient in this labor market, enterprises need the flexibility to shape the employee experience and keep it relevant,” says Bernie Hoecker, partner, enterprise cloud, with ISG.

To meet new enterprise requirements, Microsoft 365 is evolving from primarily a messaging and communication platform to a broad-based system built around employee experiences and learning, especially with the recent introduction of the Microsoft Viva employee experience platform. While most U.S. enterprises are still focused on integrating basic Microsoft 365 technologies, some service providers are looking ahead and incorporating new elements such as wellness and microlearning tools, the report says.

“Microsoft partners are helping companies build the platforms they will need to keep current employees happy and prospective hires interested,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.

The report also examines emerging challenges, including the rise of “shadow IT” and low-code/no-code development tools, that require cloud-based management capabilities. In addition, it looks at how companies are using automation to improve the work experience and how service providers can help companies migrate essential SAP applications to Azure.

The 2022 ISG Provider Lens™ Microsoft Ecosystem Partners report for the U.S. evaluates the capabilities of 36 providers across five quadrants: Managed Services for Azure, Microsoft 365 Services, SAP on Azure Services, Dynamics 365 Services and Power Platform Services.

The report names Accenture, Cognizant, DXC Technology, TCS and Wipro as Leaders in all five quadrants. It names Hexaware, IBM and Infosys as Leaders in four quadrants. NTT DATA is named as a Leader in three quadrants, and HCL and LTI are named as Leaders in two quadrants each. The report names Atos, Capgemini and Rackspace Technology as Leaders in one quadrant each.

In addition, HCL is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant.

A customized version of the report is available from Hexaware.

The 2022 ISG Provider Lens™ Microsoft Ecosystem Partners report for the U.S. 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, 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.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 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 automation, 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 1,300 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.