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