ServiceNow’s Expanded Scope Boosts Uptake in Australia

Rhea-AI Summary

ServiceNow's expanded scope is driving increased adoption in Australia, with enterprises utilizing modules for workflow management in various functions beyond IT. The ISG Provider Lens report highlights the rapid growth of ServiceNow in Australia, especially in sectors like federal agencies, financial services, and regulated industries. The introduction of GenAI and the Now Assist tool are further propelling the platform's adoption, offering automation solutions for labor-intensive processes. The report also emphasizes the benefits of the Knowledge Extraction feature in improving data processing efficiency. Collaboration between ServiceNow and its partners is enhancing the ecosystem's capabilities.

Positive

• Increased adoption of ServiceNow in Australia beyond IT functions, including HR, security, and customer experience modules.

• Rapid growth of ServiceNow in Australian federal agencies, financial services, and regulated organizations.

• Introduction of GenAI and the Now Assist tool driving automation solutions for process optimization.

• Benefits of Knowledge Extraction feature in enhancing data processing efficiency for organizations in finance and legal departments.

• Collaborations between ServiceNow and its ecosystem partners improving the platform's capabilities.

Negative

• High cost of extensive ServiceNow deployments limiting customer base to predominantly large enterprises.

• Challenges related to managing costs of ServiceNow implementations and organizational barriers affecting some deployments.

Enterprises taking ServiceNow deployments beyond IT with modules for better workflow management in HR, security, other functions, ISG Provider Lens™ report says

SYDNEY--(BUSINESS WIRE)-- ServiceNow adoption in Australia is growing rapidly as more enterprise functions and units embrace the workflow management platform, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ ServiceNow Ecosystem Partners report for Australia finds that many organizations in the country, having used ServiceNow for IT service management (ITSM), are embracing recently introduced modules for other functions, such as HR, security and customer experience. Generative AI (GenAI), the basis of the company’s new Now Assist tool, may further increase ServiceNow adoption.

Last year, growth in ServiceNow adoption in Australia likely surpassed the company’s global growth rate, the ISG report noted.

“Australian enterprises already trust ServiceNow for ITSM,” said Michael Gale, partner and head of ISG Asia Pacific. “They now see its potential to improve business processes in other areas, if properly implemented.”

Australian federal agencies, financial services companies and highly regulated organizations, such as telecommunications carriers, have been the strongest adopters of ServiceNow in multiple functional areas, ISG says. Due to the high cost of extensive ServiceNow deployments, the company’s Australian customer base is predominantly in large enterprises.

Major use cases for ServiceNow, especially data-intensive ones such as ITSM, HR and security, lend themselves to GenAI because of its potential to automate processes, ISG says. As the company continues to invest in this technology and promote Now Assist, Australian firms may find new and compelling reasons to adopt the platform.

The Now Assist platform, which became available in the second half of last year, uses advanced machine-learning algorithms to automate repetitive tasks, give recommendations and streamline decision-making, the report says. As Australian companies grapple with high labor costs, steep inflation and challenging business conditions in some industries, the promise of automation is likely to generate high interest in implementing Now Assist.

ServiceNow’s Knowledge Extraction feature, which uses AI-powered algorithms to extract specific data fields such as names, dates and amounts from documents, is also being widely adopted in document-heavy departments such as finance and legal, the report says. By allowing organizations to capture structured data from unstructured sources, Knowledge Extraction improves processes such as order-to-cash and procure-to-pay.

“Automated extraction of data not only speeds up data entry but reduces manual errors and increases accuracy,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “ServiceNow ecosystem partners are helping companies in many industries to integrate this capability.”

The report also examines other trends in the Australian ServiceNow ecosystem, including the need for skills development by service providers and increasing collaborations between ServiceNow and its ecosystem partners.

For more insights into workflow management challenges faced by Australian enterprises, including managing the costs of ServiceNow implementations and organizational barriers that hold up some deployments, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ ServiceNow Ecosystem Partners report for Australia evaluates the capabilities of 25 providers across three quadrants: ServiceNow Consulting Services, ServiceNow Implementation and Integration Services and ServiceNow Managed Services Providers.

The report names Accenture, Capgemini, Cognizant, Deloitte, Fujitsu, Infosys and Kinetic IT as Leaders in all three quadrants. It names AC3, HCLTech and Wipro as Leaders in two quadrants each. EY, KPMG and TCS are named as Leaders in one quadrant each.

In addition, AC3 and TCS are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

A customized version of the report is available from KineticIT.

In the area of customer experience, KPMG is named the global ISG CX Star Performer for 2024 among ServiceNow ecosystem partners. KPMG earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ ServiceNow Ecosystem Partners report for Australia 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.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 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 AI and 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 1,600 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240502663887/en/

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com



Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What is driving the increased adoption of ServiceNow in Australia?

The expanded scope of ServiceNow, beyond IT functions, into modules for HR, security, and customer experience, is driving increased adoption in Australia.

Which sectors in Australia are experiencing rapid growth in ServiceNow adoption?

Australian federal agencies, financial services companies, and highly regulated organizations like telecommunications carriers are experiencing rapid growth in ServiceNow adoption.

What technology is expected to further increase ServiceNow adoption in Australia?

GenAI, the basis of the Now Assist tool, is expected to further increase ServiceNow adoption in Australia.

How is automation being promoted in ServiceNow?

The Now Assist platform, utilizing advanced machine-learning algorithms, automates repetitive tasks, provides recommendations, and streamlines decision-making.

What feature is improving data processing efficiency for organizations in finance and legal departments?

The Knowledge Extraction feature, using AI-powered algorithms, extracts specific data fields like names, dates, and amounts from documents, improving processes such as order-to-cash and procure-to-pay.