Workplace Evolution: GenAI’s Impact on Employee Experience in 2024

According to a new report from Information Services Group (ISG) III, U.S. enterprises are adopting generative AI (GenAI) with cautious optimism amid ongoing economic challenges.

The 2024 ISG Provider Lens™ Future of Work Services report reveals that workplaces have stabilized following the COVID-19 pandemic. However, many changes prompted by the pandemic are still shaping how businesses operate today. Hybrid work models have become the norm, and companies are increasingly turning to technology to boost employee satisfaction and competitiveness.

“How and where employees work has significantly influenced the technology choices made by workplace leaders,” said Dee Anthony, the Americas lead for Future of Work at ISG. “Companies are leveraging new advances that can enhance efficiency and boost individual productivity.”

Late 2023 saw major tech firms push strict return-to-office policies, prompting some U.S. companies to reconsider their own policies. As a result, many industries faced talent losses, according to the report. Nowadays, less than half of large U.S. firms mandate that employees be in the office full time.

Generative AI is transforming digital workplace technologies and prioritizing employee experience in enterprise IT, ISG reports. Unified communications and collaboration (UCC) providers are integrating GenAI into their offerings, enhancing productivity and connection among colleagues. GenAI, for example, can streamline service desk operations and reduce workplace support costs.

Despite the enthusiasm around GenAI, regulatory uncertainties surrounding data privacy have slowed its widespread adoption in U.S. companies, ISG notes.

More U.S. enterprises are opting for bundled provider contracts that include workplace services like device management and digital transformation initiatives. This trend signifies that workplace services are evolving from generic IT offerings to specialized solutions tailored to specific industry needs.

“As companies adapt their operational strategies, decision-makers’ roles are becoming increasingly critical,” noted Jan Erik Aase, global leader of ISG Provider Lens Research. “Choosing the right workplace technology and service providers is essential for enterprise success.”

The report also discusses various workplace trends, such as differing expectations among generations of workers and the importance of sustainable workplace technologies.

For further insights on workplace management challenges and ISG’s recommendations for addressing these, readers can refer to the ISG Provider Lens™ Focal Points briefing available here.

The report analyzes the capabilities of 52 providers across six quadrants: Workplace Strategy and Enablement Services, Collaboration and Next-gen Experience Services, Managed End-user Technology Services — Large Accounts, Managed End-user Technology Services — Local Specialists, Continuous Productivity Services (including Next-gen Service Desk), and Smart and Sustainable Workplace Services.

HCLTech, Infosys, TCS, Unisys, and Wipro are recognized as Leaders in five quadrants each. DXC Technology, Kyndryl, and NTT DATA lead in four quadrants. Cognizant is acknowledged as a Leader in three quadrants, while Accenture, CompuCom, Stefanini, and Tech Mahindra lead in two quadrants each. Additionally, Bell Techlogix, Deloitte, Hexaware, LTI Mindtree, Pomeroy, and Zensar Technologies are Leaders in one quadrant each.

Tech Mahindra is also noted as a Rising Star, indicating promising growth in two quadrants, alongside Cognizant, Hexaware, Kyndryl, and Lenovo recognized in one quadrant each.

In customer experience, HCLTech stood out as the global ISG CX Star Performer for 2024, achieving the highest satisfaction scores in ISG’s Voice of the Customer survey, which is part of the ISG Star of Excellence™ program—a leading recognition in the tech and business services sector.

Customized versions of the report can be obtained from Bell Techlogix, Lenovo, Stefanini, and Unisys.

The full 2024 ISG Provider Lens™ Future of Work Services report for the U.S. is available for subscribers or can be purchased on the ISG website.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is a unique service provider evaluation, combining data-driven research and market analysis with insights from ISG’s advisory team. This enables enterprises to find detailed market insights for selecting sourcing partners while ISG advisors validate their market knowledge to aid enterprise clients. The research encompasses global service providers, covering markets in Europe and the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia, and Singapore/Malaysia, with plans to expand into new markets soon. More information about ISG Provider Lens research can be found on their website.

About ISG

ISG (Information Services Group) III is a leading global technology research and advisory firm. With a trusted partnership to over 900 clients, including 75 of the top 100 enterprises worldwide, ISG specializes in helping organizations achieve operational excellence and growth. Its focus includes digital transformation services, AI, cloud, data analytics, sourcing advisory, and more. Founded in 2006 and based in Stamford, Conn., ISG employs more than 1,600 professionals across over 20 countries, known for their innovative strategies and market expertise. For further details, visit www.isg-one.com.

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