Executive Insights for Supplier Intelligence

The managed network services (MNS) industry, whereby entire or parts of enterprise networks are effectively outsourced to expert suppliers, has witnessed a significant evolution since its inception in the early 2000s. Initially focused on basic connectivity and maintenance tasks, the industry has expanded to include a comprehensive range of services that address the complexities of modern ICT infrastructures. Today, MNS encompass underlay network management, network security, cloud connectivity, software-defined networking and more. The demand for MNS is driven by the need for robust security measures such as secure access service edge (SASE) and regulatory compliance amid an increasingly complex threat landscape.

Software providers have identified “openness” as a key consideration for contact center buyers. Since there is no generally accepted rule about what makes a system open, it makes sense for us to examine what components contribute to that quality, and why it should be thought of as a good thing.

For many years, HR teams encountered an endless stream of buzzwords often intended to garner excitement about new technological developments or further evolution of the HR profession. Unfortunately, this often leads us down unproductive paths in the attempt to be part of the conversation. Often, executives and senior leaders will express a requirement to include the latest buzzwords in any software RFPs as a minimum for participation. HR teams find themselves in a position of compliance but struggle to be fully informed and educated on the what, why and how associated with the trendy topics.

Doing more with less is the defining characteristic of finance and accounting departments in midsize enterprises, which ISG research defines as organizations with between 100 and 999 workers. One frustrating truth confronting executives in these organizations is that, once their company stops being a small business, it has many of the same challenges that large enterprises face but with fewer resources to deal with them. Over the past two decades, advances in information technology have had the greatest incremental impact on midsize enterprises, approaching the ability of large organizations to harness practical, affordable and reliable technology to gain productivity and improve performance, especially in the office of finance. The introduction of artificial intelligence and generative AI will close the gap further. 

Generative AI (GenAI) software can transform various aspects of enterprise operations, which makes it a critical component of modern business strategies. GenAI tools can automate repetitive tasks such as data entry, report generation and customer interactions. GenAI can improve overall operational efficiency, resulting in time and cost savings for the organization. Another benefit from GenAI software is the ability to analyze vast amounts of data and extract actionable insights, enhancing decision-making processes. This empowers the workforce to make informed decisions quicker. Utilizing GenAI in customer service and support can lead to more personalized and responsive interactions. By analyzing customer behavior and preferences, companies can tailor offerings and communications, resulting in enhanced customer satisfaction and loyalty.

In a previous role I was actively involved with identifying and implementing dashboards and reports tracking key sales department metrics and KPIs for enterprise-size customers as well as high-tech growth companies. These included recognizable examples such as opportunity conversion rate, average deal size and sales velocity (length of time to close, won or lost). Wind the clock forward and in my role as an industry analyst I now talk to customers and have a wider view of the market.

Artificial intelligence-enabled business applications have advanced considerably over the past year as software providers have added a steady stream of capabilities. This includes customer facing, financial, supply chain and workforce software. ISG Research asserts that by 2027, almost all providers of business applications will use some form of generative AI to enhance capabilities and functionality to remain competitive.

The differences between supply chain operations, consulting and BPO services, and digital transformation services in supply chain have become less defined since 2020, when the pandemic put global supply chains on halt. Technologies such as IoT, predictive analytics, automation and AI that have facilitated transformation initiatives are now being strategically explored and integrated with overall supply chain services. Their integration has assisted service providers with improved ways to seamlessly transform supply chain processes while helping enterprise clients find new and better ways to assess supply chain transformation services that align with their business objectives.

Digital workplaces: Transforming the future of U.S. public services

State and local government and educational (SLED) institutions are undergoing a significant transformation. They are rapidly transitioning to digital workplaces that are more manageable, efficient and equipped to handle the demands of a technology-driven society. 

When we analyzed the Future of Work Services market last year, we defined 2023 as the year of stabilization. While the 2 – 3 years of the COVID-19 pandemic are increasingly becoming a distant memory, the changes it brought in
the way people work persist and are redefining how organizations frame their new future of work strategy. Enterprises started adopting return-to-office (RTO) policies last year, a move that, according to multiple studies, employees did not receive well. Organizations are implementing hybrid ways of work policies, allowing their workforce the flexibility to work from a location of their choice but mandating in some instances where in-office presence is essential. These policies profoundly guide how enterprise workplace leaders define the technology and operational approach with their workforce.

Although the COVID-19 pandemic years are becoming distant memories, the changes it brought to how we work remain. Many global organizations tried, in vain, to reinstate the old ways of working with their Return-to-Office (RTO) policies. These policies face stiff resistance from the workforce, who have experienced the pros and cons of working remotely and understand that they can deliver quality output without physically being in the office. End-user technology, encompassing all the devices, applications and tools needed for work irrespective of location, has become a key driver in ensuring a successful hybrid work strategy. Ensuring an uninterrupted end-user technology experience is at the forefront of the list of priorities of enterprise IT teams. The enterprise IT teams should ensure that the devices and applications that employees use while working in a remote or hybrid environment are always up and running. There should be an automated resolution of issues associated with the end-user technology IT assets. If any issue requires reaching out to enterprise IT, it should be resolved immediately.

Within the rapidly developing and changing realm of customer service, advanced enterprise contact centers delivering superlative CX play a crucial role in ensuring customer satisfaction and improving business outcomes. These centers serve as the central hub for customer interactions, utilizing a mix of technology and human interaction to efficiently address customer needs. The incorporation of advanced technologies such as AI, generative AI (GenAI), ML and cloud-based solutions has transformed the operations of contact centers, making them highly agile, adaptable and capable of providing appropriate and personalized CX.

Overall BPO growth, which includes customer experience and other back-office operations, remained flat at $5.6 billion in the first half of 2024 compared to 1H2023. Interestingly, the number of awards – 457 – was higher in 1H2024 than the 403 in 2023. This is a strong indicator that the demand in the market is intact. However, deal sizes have been reduced.

For firms in the life sciences and healthcare analytics sector, leveraging advanced analytics has become crucial to remain competitive. The rapid advancements in AI and Generative AI (GenAI) across industries promise quick and informed decision-making by understanding user pain points and providing customized solutions to an organization’s unique problems. Implementing a modern data strategy coupled with advanced analytics and AI is a key factor in this transformation.

Maximizing AWS investments: AWS services growth has been driven by the increasing adoption of cloud services across various industries. Businesses are seeking to leverage AWS’ robust, scalable and secure infrastructure to enhance their operations, innovate and remain competitive. Several key trends have emerged in the professional and consulting services space, reflecting businesses’ evolving needs and priorities.

The FAO industry is experiencing a significant transformation, marked by an increasing emphasis on specialized capabilities to meet clients’ evolving needs. This reflects an increasing demand for  comprehensive solutions that extend beyond traditional outsourcing, encompassing technology, advanced analytics, strategic consulting  and industry-specific expertise. In response, FAO providers are developing diverse capabilities to enhance their service offerings. This strategic shift not only streamlines financial processes but also offers tailored solutions to address client’s specific challenges. By integrating specialized expertise and advanced tools, FAO providers are positioning themselves as essential partners in their clients’ journey toward operational excellence and strategic growth. This comprehensive approach ensures that providers can deliver value-added services, helping clients navigate complex financial landscapes and achieve their business objectives.

Artificial intelligence governance is a concern for many enterprises. In our recent ISG Market Lens study on generative AI, 39% of participants cited data privacy and security among the biggest inhibitors to adopting AI. Nearly a third (32%) identified performance and quality (e.g., erroneous results), and an equal amount (32%) mentioned legal risk.

There is a lesson to be learned for enterprises as they strive to make use of analytics and data to out-compete their rivals. Just as all 100-meter runners are fast, all enterprises strive to be data-driven. Making decisions based on data is not enough to be successful, however. The winners are those that can process and act upon data at the speed of business. This is easier said than done, given the overwhelming historical reliance on batch data processing. As I have previously stated, the execution of business events has always occurred in real time. Batch data processing is an artificial construct driven by the limitations of traditional data processing capabilities that require enterprises to process data minutes, hours or even days after an event. Processing and acting on data at the speed of business necessitates a change of approach by enterprises to make real-time data processing a central component of their analytics and data strategy, rather than an exception.

It is unfortunate that business-focused digital communications are sold under three different headings: Contact Center as a Service (CCaaS), Unified Communication as a Service (UCaaS) and Communication Platform as a Service (CPaaS). (And that just counts the cloud options—let us acknowledge the huge, continuing, installed base on premises.) These are terrible ways to describe complex, varied and overlapping offerings.

The latest ISG Buyers Guide for Cloud Computing Platforms uncovers the market evolution of regional and global cloud providers. Buyers Guides for Public Cloud Platforms, Private Cloud Platforms and Hybrid Cloud Platforms are part of the recent software provider evaluations. ISG Software Research defines Cloud Platforms as a software service for organizations to access virtualized IT resources via the internet on a pay-per-use basis. These resources include servers, data processing power, data storage, networking infrastructure, virtualization capabilities and more. Cloud platforms are an enterprise alternative to operating on-premises data centers and compute environments. However, not all cloud platforms are suitable for all enterprise use cases. Multiple capabilities remain underrepresented and will keep enterprises from accelerating the adoption of cloud-powered services and broader migration of workloads. This analyst perspective highlights opportunities for cloud service providers to better meet enterprise requirements in the coming years.