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U.S. Firms Automate to Increase Business Agility

Companies are adopting scalable automation solutions to stay competitive, while GenAI promises future automation breakthroughs, ISG Provider Lens™ report says

Enterprises in the U.S. are seeking scalable, flexible automation solutions and services to help them adapt to rapidly changing business requirements, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ Intelligent Automation Services and Solutions report for the U.S. finds a growing number of companies are exploring opportunities to implement end-to-end intelligent automation. Demand for these solutions in the U.S., the world’s largest market for intelligent automation, is being driven by corporate digital transformation strategies, growing compliance and security needs and rising interest in the possibilities of AI and ML.

“Intelligent automation does more than cut costs. It can help enterprises anticipate and quickly respond to new opportunities,” said Chip Wagner, CEO, ISG Automation. “Service providers are working with clients to mitigate implementation challenges and get results from automation.”

Companies in the U.S. are leading the world in exploring and adopting artificial intelligence for AI operations (AIOps), a growing segment of intelligent automation that blends IT operations with business processes, the report says. As more firms turn to cloud-native infrastructure, they are using AIOps to take a more proactive approach to IT, make IT operations more observable and glean better insights for fast decision-making.

Generative AI (GenAI) is driving the latest advances in next-gen automation, enabling the creation of more advanced automation models that fit the needs of specific industries and functions, ISG says. Large U.S. enterprises with mature automation strategies have been the first to embrace next-gen automation. Companies seek to use these models to perform sophisticated, context-based tasks in areas such as finance, health care and retailing.

“In enterprise automation, GenAI has the potential to vastly improve efficiency, personalized customer experience and more,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers and clients are investing heavily in this area even though there is still much work to be done.”

GenAI strategies increasingly reflect rising concerns about the technology, the report says. As governments in the U.S. and elsewhere look more closely at the need for ethical and explainable AI, service providers are incorporating ethical AI principles and working to make their AI models more transparent.

The report also explores other intelligent automation trends in the U.S., including roles for GenAI in change management and emerging services that help enterprises respond to automation’s impact on workforce dynamics.

For more insights into the automation challenges companies face, along with ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2023 ISG Provider Lens™ Intelligent Automation Services and Solutions report for the U.S. evaluates the capabilities of 37 providers across three quadrants: Intelligent Enterprise Automation, Artificial Intelligence for IT Operations (AIOps) and Next-Gen Automation.

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

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

Customized versions of the report are available from Capgemini, Hexaware and Persistent Systems.

The 2023 ISG Provider Lens™ Intelligent Automation Services and Solutions 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., 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 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 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.

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