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Cost-cutting Lifts U.K. Demand for Automation Services

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U.K. Enterprises Turn to Intelligent Automation Amid Stagflation

According to a new report from ISG, U.K. companies plan to invest more in intelligent automation technologies to cut costs during the ongoing stagflation crisis. The report highlights a revolution in automation methods, integrating AI and machine learning to enhance efficiency across various business processes. Key players such as Accenture and Capgemini have been identified as leaders in the automation sector. Additionally, challenges like technical debt and governance are crucial as enterprises shift toward comprehensive automation strategies.

Positive
  • Increased investment in intelligent automation technologies among U.K. enterprises.
  • Rising trends in hyper-automation and low-code development tools.
  • Government support for technology investments enhancing business continuity.
Negative
  • Concerns regarding technical debt during application restructuring.
  • Challenges in determining optimal automation opportunities and governance.

Companies squeezed between inflation and slow growth are embracing advanced, end-to-end automation, ISG Provider Lens™ report says

LONDON--(BUSINESS WIRE)-- Enterprises in the U.K. are expected to increase investments in intelligent automation technologies to reduce costs as the nation’s economy suffers through a stagflation crisis, 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™ Intelligent Automation — Services and Solutions report for the U.K. finds that automation has been going through a revolution in the U.K. and other developed markets, with the technology being applied to a wide range of problems related to IT functions, products, services, business processes and interactions between employees and customers. The new generation of technologies is called intelligent automation because it uses algorithmic technologies such as AI and machine learning to replicate aspects of thinking, including pattern detection, language understanding and decision-making.

“Automation is improving many aspects of business, employee and consumer life, in areas not even anticipated a few years ago,” said Chip Wagner, CEO ISG Automation. “The new capabilities are already a reality at some leading companies and could be widespread by 2025.”

Several trends are reshaping automation at enterprises in both the U.K. and other markets, the report says. A growing number of companies are now exploring hyper-automation, a holistic approach designed to address the entire enterprise and completely reimagine organizational processes. The use of low-code development tools is also on the rise, empowering workers to automate existing processes without the need for expert coding talent.

In the U.K., the combination of price inflation and slow or negative economic growth give enterprises increased incentive to adopt new automation technologies in search of lower operating costs and better business continuity, the report says. In addition, the national government remains committed to investing in new technologies and is encouraging the use of intelligent automation.

A survey of CIOs and CTOs in the U.K. found that one of their major concerns about intelligent automation is the risk of accumulating technical debt when restructuring applications and data. Other automation challenges at large enterprises include determining the best opportunities for automation, making the transition from piecemeal to end-to-end automation and imposing governance over initiatives involving different organizations, ISG says.

“Automation is still new to many companies, especially smaller businesses,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The overwhelming number of technologies, solutions and vendors to choose from can be difficult to navigate.”

The report also explores other trends affecting enterprises pursuing automation in the U.K., including the rise of cloud-based automation solutions and the need to develop new skills for human-machine collaboration.

The 2022 ISG Provider Lens™ Intelligent Automation — Services and Solutions report for the U.K. evaluates the capabilities of 31 providers across three quadrants: Intelligent Enterprise Automation, Artificial Intelligence for IT Operations (AIOps) and Next-Gen Automation.

The report names Accenture, Atos and Capgemini as Leaders in all three quadrants. It names Cognizant, HCLTech, IBM, Infosys, TCS and Wipro as Leaders in two quadrants each. Hexaware, PwC and WNS Vuram are named as Leaders in one quadrant each.

Customized versions of the report are available from Capgemini and WNS Vuram.

The 2022 ISG Provider Lens™ Intelligent Automation — Services and Solutions report for the U.K. 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.

Press Contacts:



Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com



Kate Hartley, Carrot Communications for ISG

+44 (0)20 3457 6403

kate.hartley@carrotcomms.co.uk

Source: Information Services Group, Inc.

FAQ

What does the ISG report say about automation trends in the U.K. for III?

The ISG report indicates that U.K. enterprises are increasing investments in intelligent automation to reduce costs amidst stagflation.

Which companies are recognized as leaders in automation according to III's report?

Accenture, Atos, and Capgemini are named as leaders in all three quadrants of automation.

What are the major concerns regarding intelligent automation highlighted in the ISG report for III?

Concerns include the risk of technical debt during restructuring and the transition challenges from piecemeal to end-to-end automation.

How is the U.K. government supporting automation technologies according to the report by III?

The U.K. government is committed to investing in new technologies and encouraging the adoption of intelligent automation.

Information Services Group, Inc.

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