U.S. Companies Look to Enterprise Service Management to Achieve Digital Transformation
The 2021 ISG Provider Lens™ Enterprise Service Management (ESM) Report reveals a growing reliance on ESM providers as U.S. enterprises seek to enhance control over non-technical operations. The report highlights ESM's pivotal role in digitization and indicates rising demand for implementation services due to market complexities. Leaders in the report include Capgemini, Infosys, and DXC Technology, among others. The shift towards managed services is noted, as many companies prefer outsourcing to meet their ESM needs. The full report assesses 34 providers across four service quadrants.
- Increasing reliance on ESM providers indicates a robust market demand.
- Capgemini and Infosys recognized as leaders in three quadrants, showcasing strong capabilities.
- Rising complexity in the ESM market necessitates increased outsourcing to managed services, highlighting companies' struggles in capacity and expertise.
Enterprises in the U.S. are looking for greater control of their non-technical functions through enterprise service management, and are turning to ESM providers for the required tools and services, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2021 ISG Provider Lens™ Enterprise Service Management – Tools and Services Report for the U.S. finds ESM becoming an integral part of companies’ digitization strategies. To address the complexities of the ESM market, companies are using providers to support them in the planning, implementation and provision of solutions.
“ESM is one of the cornerstones of a company’s digitization strategy, with a range of forward-looking technologies used to transform company processes,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “More and more companies are embracing XaaS offerings to run their business, but to be successful they need ESM partners with broad knowledge of the available software and tools, and the ability to integrate applications and support organizational transformation.”
The report finds providers that can deliver complex projects based on a variety of software solutions are market leaders in the ESM consulting and transformation space. Top providers offer a range of advisory services and have extensive practical experience. The focus in the consulting and transformation space is often on human resources, facilities management, risk management, finance, purchasing and customer care.
In the area of ESM implementation and integration services, the report finds a rapidly growing demand for support due to the increasing complexity of the market and the need to integrate new technologies. Leading ESM software providers are continuously expanding their functionalities and are enabling a steady increase in the automation of company processes. Providers can help companies integrate their software solutions, a necessity for automating processes across organizations.
The report also sees the ESM tools area as dynamic, with providers offering new technologies such as artificial intelligence and machine learning. In addition, the market is constantly changing because of new partnerships, takeovers and mergers of providers. Some providers are focused on delivering complete ESM platforms with a wide range of basic functionality supported by app stores. Others are focusing on expanding classic help desk solutions to ESM systems through integration, partnerships or intelligent workflow systems.
Finally, managed services providers are becoming popular with many enterprises due to the complexity and dynamism of the ESM market, the report says. Many companies lack the capacity and knowledge to operate the solutions available on the market. They see the high number of product upgrades as a hurdle, but managed services providers can deliver the functionalities necessary for a holistic management approach.
The 2021 ISG Provider Lens™ Enterprise Service Management – Tools and Services Report for the U.S. evaluates the capabilities of 34 providers across four quadrants: ESM Consulting and Transformation Services, ESM Implementation and Integration Services, ESM Tools Providers and ESM Managed Services Providers.
The report names Capgemini and Infosys as leaders in three quadrants and DXC Technology, Trianz and Wipro Leaders in two quadrants. Accenture, BMC, CGI, Cherwell, Deloitte, Firescope, KPMG, LTI, Micro Focus and ServiceNow are named Leaders in one quadrant.
In addition, DXC Technology, Infosys, Ivanti and Tech Mahindra were named Rising Stars—companies with “promising portfolios” and “high future potential” by ISG’s definition—in one quadrant each.
A customized version of the report is available from Trianz.
The 2021 ISG Provider Lens™ Enterprise Service Management – Tools and Services Report for the U.S. 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., Germany, Switzerland, the U.K., France, the Nordics, Brazil and Australia/New Zealand, 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 700 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.
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FAQ
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