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U.S. Public Sector Turns to Providers for New Age of Work

Governments, institutions embrace outsourcing as pandemic accelerates trends changing where and how employees work, ISG Provider Lens™ report says

A growing number of U.S. public sector organizations are outsourcing workplace transformation initiatives to service providers as they face new challenges in attracting and retaining employees, 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™ Future of Work — Services and Solutions report for the U.S. public sector finds the COVID-19 pandemic accelerated ongoing changes in workplaces and work modes, forcing governments, agencies, schools and non-governmental organizations to recognize the importance of workplace resilience and become more open to outsourcing what they had perceived as core functions.

“Many public sector organizations in the U.S. are realizing that workplace transformation has become essential,” said Nathan Frey, partner, ISG Public Sector. “Service providers are helping them plan and execute initiatives to reach their goals.”

The sudden need to enable remote work during the pandemic, which has led to widespread demands for hybrid work options, is only the latest workplace challenge facing U.S. public sector organizations, the report says. Many agencies and institutions are struggling to serve constituents better through a growing number of channels while their budgets shrink. They also face rising cybersecurity concerns, new customer experience demands and a wave of staff retirements.

Providers are helping public sector clients address these needs through workplace transformations that enable safe work from anywhere, employee training in digital skills and fast, proactive support, ISG says. They are also helping clients understand how and when to use new technologies, including AI and IoT, to overcome acute skills shortages.

“Most governments and agencies are saddled with legacy technologies and practices that were not designed for the new pace of change,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “They are turning to providers for roadmaps to serve them through current and future scenarios.”

Data is playing a powerful role in these public sector workplace modernizations, the report says. Monitoring technologies identify waste, security breaches, productivity bottlenecks and other problems, while AI-based analytics turns those findings into insights that inform changes to the workplace.

The report also explores several other workplace trends in the U.S. public sector, including the rise of automation, an increasing focus on employee experience and well-being and growing efforts to make physical workspaces better for workers through new technology.

The 2022 ISG Provider Lens™ Future of Work — Services and Solutions report for the U.S. public sector evaluates the capabilities of 34 providers across four quadrants: Workplace Strategy Transformation Services, Managed Workplace Services — End User Technology, Digital Service Desk and Workplace Support Services, and Managed Employee Experience Services.

The report names Accenture, Infosys, Unisys and Wipro as Leaders in all four quadrants. It names Tech Mahindra as a Leader in three quadrants and Capgemini as a Leader in two quadrants. Deloitte, KPMG, McKinsey, PwC and TCS are named as Leaders in one quadrant each.

A customized version of the report is available from Unisys.

The 2022 ISG Provider Lens™ Future of Work — Services and Solutions report for the U.S. public sector 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


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