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German Firms Start Adapting to Rapid Changes in Work
Rhea-AI Impact
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Rhea-AI Sentiment
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Rhea-AI Summary
Digital transformation is essential for German enterprises as hybrid work becomes the norm post-COVID-19, according to the latest ISG Provider Lens™ report. The study reveals a disconnect between employers and employees regarding remote work, with over 25% of businesses considering eliminating work-at-home options. Organizations are now prioritizing hybrid work models that foster company culture while adapting to regulatory requirements like GDPR. Additionally, the report highlights the significance of consulting services in modernizing workplaces and the impact of generational shifts on employee expectations.
Positive
Growing demand for hybrid work modes among employers.
Research shows enterprises are focusing on enhancing employee experience and digital transformation.
Adoption of digital workplace consulting services is rising to improve end-user experiences.
Negative
Over 25% of German companies considering the removal of work-at-home options.
Potential employee turnover if mandated to return to the office, affecting workforce stability.
Generational workforce challenges as Baby Boomers retire and Generation Z seeks flexible work.
Work-from-home experiences have forced enterprises to explore digital transformation for hybrid work modes that productively engage employees, ISG Provider Lens™ report says
FRANKFURT, Germany--(BUSINESS WIRE)--
Ways of working in Germany have entered a state of constant change due to the effects of the COVID-19 pandemic and the rise in digitalization, making digital transformation to improve employee experience increasingly essential, 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™ Future of Work — Services and Solutions report for Germany finds that while the pandemic forced German enterprises to review the importance of in-office work, employers and employees in many companies may still be at odds over remote and hybrid work. With industry research showing that more than one-quarter of German companies will consider removing work-at-home options and many employees say they will quit if forced to return to the office, enterprises need to find ways to preserve company culture as work practices change.
“German employers are facing strong demand for hybrid work modes that combine the best of remote and in-office experiences,” said Iain Fisher, ISG’s global Future of Work lead. “They are beginning to approach digital work with a focus on outcomes, managing the state of work instead of where it takes place.”
Enterprises implementing hybrid collaboration methods in Germany face the additional requirement that workplaces regularly adapt to changing laws and industry-specific guidelines, such as GDPR and operating rules set by BaFin, the German financial regulator.
As in other countries, generational change in the workplace also poses an ongoing challenge to employers in Germany, the report says. While retiring Baby Boomers are creating a gap in the workforce, with many of their positions proving difficult to fill, Generation Z is coming on board expecting digitally enabled work flexibility instead of a return to pre-pandemic practices. This generation also favors employers that align with their values and beliefs, which further changes the game for retaining and engaging the best workers.
German enterprises seeking to modernize their digital workplaces are considering workplace consulting services to develop comprehensive strategies and managed services to enhance end-user experiences and ensure enterprise data is protected, ISG says. These services are being integrated into broad-based initiatives, often combined with automated, predictive workplace support services and advanced employee experience services that target distinct worker personas.
“Digital workplace initiatives are being carried out as part of companywide business and digital transformations,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The market for engagements focused solely on technology or end-user computing is shrinking.”
The report also explores other workplace trends in Germany, including the adoption of employee community apps to extend corporate culture into the digital realm and the growing interest in virtual reality for uses such as onboarding.
The 2022 ISG Provider Lens™ Future of Work — Services and Solutions report for Germany evaluates the capabilities of 30 providers across four quadrants: Workplace Strategy Transformation Services, Managed Workplace Services — End User Technology, Digital Service Desk and Workplace Support Services, and Managed Employee Experience Services.
The report names Accenture, Capgemini, Computacenter, Fujitsu, HCL and Unisys as Leaders in all four quadrants. It names Bechtle, Cancom and Wipro as Leaders in three quadrants each. Deutsche Telekom is named as a Leader in two quadrants, and Getronics and Infosys are named as Leaders in one quadrant each.
The 2022 ISG Provider Lens™ Future of Work — Services and Solutions report for Germany 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.
What does the ISG Provider Lens™ report say about remote work in Germany?
The report highlights strong demand for hybrid work modes and indicates over 25% of German companies might eliminate remote work options.
How are German enterprises addressing digital transformation?
Many are seeking workplace consulting services to implement strategies for enhancing employee experiences and ensuring data protection.
What challenges do employers in Germany face regarding hybrid work?
Employers face a divide with employees over remote work preferences, leading to potential turnover if returning to traditional office settings.
Which companies were named Leaders in the ISG report?
Accenture, Capgemini, Computacenter, Fujitsu, HCL, and Unisys were identified as Leaders across all four quadrants in the report.
What impact does generational change have on the workforce in Germany?
The retirement of Baby Boomers creates workforce gaps, while Generation Z demands digitally enabled flexibility, challenging traditional work practices.
