As digital transformation becomes more complex, service providers are helping businesses realize lasting advantages through technology, says ISG’s Provider Lens™ report
US businesses have significantly increased their adoption of digital services, tools and frameworks over the past two years as advances in technology have made digital transformation more complex, according to a new research report released today by Information Services Group (ISG) (Nasdaq). : III), the world’s leading technology research and consulting firm.
The ISG Provider Lens™ Digital Business Enablement and ESG Services 2022 US report reveals that digital transformation is now essential for businesses across many industries. This makes companies more dependent on service providers for essential steps in the process, including establishing digital business models, leveraging technology and data for competitive advantage, and creating a culture of experimentation.
“Digitizing for sustained advantage requires more than discrete technologies,” said Prashant Kelker, partner and head of ISG’s digital advisory services for the Americas. “Digital tools are just enablers. Companies in the US have realized that they need to introduce a digital culture.
In the wake of the disruption caused by the COVID-19 pandemic, US businesses have shifted their priorities from survival to agility, resilience, efficiency, business model transformation and becoming digitally native, the report said. The events of the past two years have made companies realize that they need to improve productivity, customer engagement and product and service offerings.
Digital technologies remain the biggest drivers of transformation in U.S. businesses, which are rapidly adopting AI, IoT, cybersecurity tools and the cloud to modernize and optimize processes, according to the report. Enterprise digital leaders are deploying augmented, virtual and mixed reality (AR/VR/MR) to create more immersive experiences for employees and customers and improve manufacturing and maintenance operations. These capabilities, already present in areas such as manufacturing and automotive, will soon be adopted by healthcare and banking firms, ISG says.
US companies are also increasingly collaborating with environmental, social and governance (ESG) service providers to meet regulations, business goals and consumer expectations, the report said. ISG predicts that ESG initiatives will be a major trend in the US over the next 24 months, particularly in the area of decarbonisation, where the US is close to catching up with European countries.
“Companies are realizing that unless they make their business sustainable, consumers and investors will move on,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Providers are making a big effort to help clients implement ESG projects and establish governance frameworks that ensure they achieve their goals.
For more insight into the enterprise challenges that digital business services can solve and tips on how to choose the right provider, view the ISG Provider Lens™ Focus Points Briefing here.
The ISG Provider Lens™ Digital Business Enablement and ESG Services 2022 report for the US assesses the capabilities of 40 providers in five quadrants: business advisory services, customer experience services, digital reality services, supply chain transformation services, and sustainability and ESG services.
The report names Accenture and HCLTech as leaders in all five quadrants. It names IBM and Wipro as leaders in four quadrants each and Cognizant, Infosys and TCS as leaders in three quadrants each. Capgemini, LTI and Tech Mahindra were named leaders in two quadrants each. BCG, Deloitte Digital, GEP, Hekavare, Mindtree, PvC, UST and Zensar were named leaders in one quadrant each.
In addition, Birlasoft, GEP, Tech Mahindra, UST and Zensar were named as rising stars — companies with “promising portfolios” and “high future potential” as defined by ISG — in each quadrant.
Custom versions of the report are available from Birlasoft and Hekaware.
The 2022 US ISG Provider Lens™ Digital Business Enablement and ESG Services Report is available to subscribers or for one-time purchase on this website.
About ISG Provider Lens™ research
The ISG Provider Lens™ Quadrant research series is the only provider assessment of its kind that combines data-driven empirical research and market analysis with real-world experience and insights from ISG’s global advisory team. Businesses will find a wealth of detailed market data and 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 business clients. The survey currently covers providers offering their services globally, across Europe, as well as in the US, Canada, Brazil, UK, France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added . in the future. For more information on ISG Provider Lens research, visit this website.
A companion research series, the ISG Provider Lens Archetype Reports, offers a first-of-its-kind assessment of providers from the perspective of specific customer types.
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and consulting company. A trusted business partner to more than 800 clients, including more than 75 of the world’s 100 largest enterprises, ISG is dedicated to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and accelerate growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advice; management and risk services; network operator services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006 and headquartered in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals working in more than 20 countries—a global team known for its innovative thinking, market impact, deep industry and technology expertise, and worldwide class-leading research and analytical capabilities based on the most comprehensive market data in the industry. For more information, visit www.isg-one.com.