Enterprises Want Providers to Manage Entire Workloads

ISG Provider Lens™ report finds companies looking for cloud-based managed services providers that combine artificial intelligence, analytics and IoT expertise

Company Release - 10/4/2019 9:00 AM ET

STAMFORD, Conn., Oct. 4, 2019 /PRNewswire/ -- Enterprises are looking for technology vendors that can manage their entire IT workloads in hybrid cloud environments to support their increasingly agile and globally distributed operations, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2019 ISG Provider LensPrivate/Hybrid Cloud - Data Center Services & Solutions Archetype report also finds enterprises embracing cloud-based services that offer integrated and cognitive technology, including artificial intelligence-based services.

Many enterprises are looking to use AI and analytics services to ensure that customer needs remain a central focus and customer satisfaction remains high, the report says.

"Managed services are continuously innovated with cutting-edge technologies in an as-a-service model," said Jan Erik Aase, director and global leader of ISG Provider Lens Research. "Enterprises want providers to manage their IT workloads by combining artificial intelligence with real-time analytics and smart monitoring."

In addition to AI and analytics, enterprises are increasing their use of the Internet of Things (IoT) and are looking for mature managed services providers to manage their IoT systems and offer IoT-centric security, the report says. Emerging technology like blockchain and big data also will create big opportunities for infrastructure-focused managed services providers, the report adds.

Enterprise budgets for hybrid cloud computing, meanwhile, have doubled in recent years, the report says. However, cloud technology is not always easy to implement and manage, and many enterprises have realized they need outside expertise to gain the benefits of cloud computing, the report adds.

The 2019 ISG Provider LensPrivate/Hybrid Cloud - Data Center Services & Solutions Archetype report examines four different types of clients, or archetypes, that are looking for cloud-based data center and managed services providers. The report evaluates the capabilities of 30 providers to deliver services to the four archetypes:

Traditional archetype: These clients have limited outsourcing experience and work with service providers through selective outsourcing. They only outsource a small fraction of their data center operations, through staff augmentation, project-based work or partial outsourcing of ongoing infrastructure management. Cost optimization is their primary focus.

Managed services archetype (mid-sized focus): These clients have previously signed small outsourcing contracts, with a focus on cost optimization, and are now willing to transfer greater operational responsibility to an outsourcing service provider. Their budgets are constrained, however, and the focus is on tactical service-level agreements. These companies are willing to embrace some transformation elements, such as modest investments in automation and cloud.

Transformation archetype (large-scale focus): These companies are third-generation outsourcers with a preference for an optimized mix of onshore, nearshore and offshore delivery models. They are not severely constrained by budgets and can undertake large transformation initiatives. They view service providers as strategic partners, and they seek to provide IT services to their business units using an as-a-service, utility-based model.

Pioneering archetype: These clients seek to extend their transformation initiatives with investments in software-defined networking and storage to realize, in some cases, an end-to-end software-defined data center. They seek service providers with the knowledge and experience in software-defined enabling tools, including hyper-converged storage systems. These clients have already achieved a significant level of cloud adoption and now focus on further optimizing hybrid cloud management, including next-generation practices such as workload portability.

Among the providers ISG evaluated, Cognizant, DXC Technology, HCL, IBM, Microland, NTT, TCS, Unisys and Wipro were named leaders across two archetypes. Accenture, Atos, Capgemini, Ensono, Fujitsu, GAVS, HTC (Ciber), LTI, Mindtree, NTT DATA, Orange Business Services, Sungard AS, Tech Mahindra, UST Global and Zensar were named leaders in one archetype.

Customized versions of the report are available from Microland, Mindtree, Unisys and UST Global.

The 2019 ISG Provider LensPrivate/Hybrid Cloud - Data Center Services & Solutions Archetype report is available to ISG Insights™ subscribers or for immediate, one-time purchase on this web page.

About ISG Provider Lens™ Research

The ISG Provider Lens™ 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 and Latin America, as well as in the U.S., Germany, the U.K., the Nordics and Brazil, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

The series is a complement to the ISG Provider Lens Archetype reports, which 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 70 of the top 100 enterprises in the world, 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

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