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Digitalization Takes Off in U.S. With Transformative Services

As digital transformation becomes more complex, service providers help enterprises achieve sustained advantages through technology, ISG Provider Lens™ report says

Enterprises in the U.S. have significantly increased their adoption of digital services, tools and frameworks in the last two years, as advances in technology have made digital transformation more complex, 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™ Digital Business Enablement and ESG Services report for the U.S. finds digital transformation is now a necessity for enterprises in many industries. This is making companies more dependent on service providers for essential steps in the process, including establishing digital business models, using technology and data for competitive advantage and creating a culture of experimentation.

“Digitalization for sustained advantage requires more than discrete technologies,” said Prashant Kelker, partner and ISG Digital Advisory Services lead for the Americas. “Digital tools are just enablers. Companies in the U.S. have realized they need to introduce a digital culture.”

In the wake of disruptions caused by the COVID-19 pandemic, U.S. enterprises have shifted their priorities from survival to agility, resilience, efficiency, business model transformation and becoming more digitally native, the report says. The events of the past two years have forced companies to recognize that they need to improve productivity, customer engagement and product and service offerings.

Digital technologies remain the biggest enablers of transformation at U.S. enterprises, which are rapidly adopting AI, IoT, cybersecurity tools and the cloud to modernize and optimize processes, the report says. 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 fields like manufacturing and automotive, will soon be adopted by health care and banking firms, ISG says.

U.S. companies are also increasingly engaging with providers for environmental, social and governance (ESG) services to meet regulations, enterprise goals and consumer expectations, the report says. ISG predicts ESG initiatives will be a major trend in the U.S. over the next 24 months, especially in the area of decarbonization, where the U.S. is close to catching up with European countries.

“Companies recognize that unless they can 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 push to help clients carry out ESG projects and establish governance frameworks that ensure they meet their goals.”

For more insights into the enterprise challenges that digital business services can address, and advice on how to choose the right provider, see the ISG Provider Lens™ Focal Points briefing here.

The 2022 ISG Provider Lens™ Digital Business Enablement and ESG Services report for the U.S. evaluates the capabilities of 40 providers across five quadrants: Business Consulting 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 are named as Leaders in two quadrants each. BCG, Deloitte Digital, GEP, Hexaware, Mindtree, PwC, UST and Zensar are named as Leaders in one quadrant each.

In addition, Birlasoft, GEP, Tech Mahindra, UST and Zensar are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

Customized versions of the report are available from Birlasoft and Hexaware.

The 2022 ISG Provider Lens™ Digital Business Enablement and ESG Services 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.

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