Integrated workplace strategies improve employee experience, boost service delivery, ISG Provider Lens^® report says

Organizations in the U.S. public sector are building connected digital ecosystems for workforce operations to improve mission execution, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens^® Future of Work — Services report for the U.S. Public Sector finds that state, local government and education (SLED) organizations are refocusing workplace strategies from technology deployment to orchestration of work, people and environments. Agencies are modernizing mission-critical services while managing budget constraints, workforce shortages and expanding requirements for security, accessibility and responsible AI. Through workplace initiatives spanning IT, HR and facilities functions, organizations increasingly coordinate investments to improve operational performance and citizen experience.

“U.S. public sector organizations are redefining the workplace as a strategic operating environment rather than a collection of technology tools,” said Nathan Frey, partner at ISG. “Success increasingly depends on aligning people, processes and digital capabilities to achieve measurable outcomes.”

AI is becoming a pervasive element of daily operations in the U.S. public sector. Agencies are incorporating AI capabilities into collaboration platforms, service desks and workflows to automate routine activities and improve decision-making. To maximize long-term benefit from these technologies, organizations are investing in reskilling initiatives and establishing responsible AI practices that address transparency, accessibility and security requirements.

Hybrid work continues to evolve across offices, campuses, field locations and remote settings, requiring agencies to deliver consistent experiences for distributed workforces. Organizations are integrating digital collaboration platforms with physical workplaces to enhance productivity and employee engagement. Budget pressures and talent shortages are driving agencies to adopt automation, standardized platforms and lifecycle-based service delivery models to reduce complexity and increase efficiency.

Public sector organizations are placing greater emphasis on measurable business outcomes when evaluating workplace investments. Agencies increasingly use digital employee experience metrics and experience level agreements, in place of traditional service level agreements, to assess productivity, workforce engagement and service responsiveness. They are also consolidating fragmented technology environments through unified workplace strategies. Smart workplace technologies that improve energy efficiency and optimize space utilization are becoming more common in large government facilities and education campuses, ISG says.

“The agencies making the greatest progress treat digital workplaces as living environments that require continuous measurement and adjustment,” said Bruce Guptill, lead author of the report. “Providers that can combine experience metrics, responsible AI practices and cross-functional execution will help organizations achieve sustained operational improvement from workplace modernization.”

The report also explores other trends affecting U.S. public-sector digital workplace services, including the increasing importance of sustainability in workplace strategies and the growing investment in change management to help agencies realize the full value of transformation programs.

For more insights into the workplace challenges faced by organizations in the U.S. public sector, along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.

The report evaluates the capabilities of 30 providers across four quadrants: Workplace Strategy and Enablement Services, Digital Workplace Operations and Support Services, AI-augmented Collaboration and Experience Services and Smart and Sustainable Workplace Services.

The report names Accenture, HCLTech, Infosys, NTT DATA and Unisys as Leaders in all four quadrants. It names Capgemini, CGI and Kyndryl as Leaders in three quadrants each. Red River is named as a Leader in two quadrants. Deloitte, Guidehouse, KPMG and Zones are named as Leaders in one quadrant each.

In addition, Computacenter is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants.

In the area of customer experience, Infosys is named the global ISG CX Star Performer for 2026 among workplace services providers. Infosys 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 2026 ISG Provider Lens Future of Work — Services report for the U.S. Public Sector is available to subscribers or for one-time purchase on this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260727073419/en/

The U.S. public sector is redefining the workplace as a strategic operating environment rather than a collection of technology tools. Success increasingly depends on aligning people, processes and digital capabilities to achieve measurable outcomes.