Press Release

AI, Hybrid Work, ESG Reshape Australian Workplaces

Enterprises partner with providers to satisfy employee expectations, local regulations, sector-specific needs, ISG Provider LensĀ® report says

SYDNEY, Australia–(BUSINESS WIRE)–$III #AI–Australian enterprises are reimagining their digital workplace environments through the combined adoption of generative AI (GenAI), hybrid work modes and sustainability-focused innovation, 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 2025 ISG Provider LensĀ® Future of Work Services report for Australia finds that organizations are carrying out digital workplace plans centered on AI automation, employee experience analytics and compliance with environmental, social and governance (ESG) regulations. Many are responding to a national drive for inclusivity, sustainability and decentralization of the workforce.

ā€œAustralia has moved beyond global imitation to establish its own digital workplace identity,ā€ said Jason McAuliffe, director and APAC Workplace and Experience lead, ISG. ā€œLocal enterprises are incorporating AI ethics, experience design and ESG outcomes into their core technology strategies to achieve both innovation and social responsibility.ā€

Hybrid work in Australia has evolved into a structured framework, the report says. Australian employers are building inclusive models of work that balance employee flexibility with organizational accountability. More than 80 percent of enterprises have adopted hybrid work modes, and providers have introduced IoT-enabled smart offices, digital twins and tailored, persona-based services to support these. Regional delivery hubs are emerging as part of a national movement to decentralize services and support hybrid work across urban and rural areas. These innovations let organizations maintain productivity across dispersed regional workforces.

Experience management has become a defining part of workplace transformation as Australian enterprises seek to improve employee retention and engagement, ISG says. They are moving from traditional service-level agreements with providers to experience-level agreements (XLAs) to link IT performance with employee satisfaction and business outcomes. Using sentiment analytics, telemetry and omnichannel support tools, organizations are building service environments that can be shaped by ongoing feedback.

GenAI has made the leap from labs to core infrastructure within Australian enterprises, influencing workplace strategies, the report says. Organizations are embedding AI in workflow automation, collaboration and analytics, deploying AI copilots and agentic systems for decision support and knowledge management. Australian companies are focused on maintaining essential governance and transparency, while national initiatives such as AI academies and governance frameworks take steps to ensure responsible AI adoption.

ā€œTrends in AI, hybrid work and ESG are defining Australian work strategies and workplace services for the future,ā€ said Bruce Guptill, lead author of the report. ā€œEnterprises are no longer adopting technology for efficiency alone. They are building intelligent, ethical and sustainable systems that can provide long-term competitiveness.ā€

The report also explores other trends influencing Australian digital workplaces, including the use of GreenOps platforms for energy optimization and the integration of AI-powered learning tools to promote equity and lifelong employee development.

For more insights into the workplace technology challenges facing Australian enterprises, plus ISG’s advice for overcoming them, see the ISG Provider LensĀ® Focal Points briefing here.

The 2025 ISG Provider LensĀ® Future of Work (Workplace Services) report for Australia evaluates 37 providers across six quadrants: Workplace Strategy and Enablement Services, Collaboration and Next-gen Experience Services, Managed End-user Technology Services, Continuous Productivity Services (including Next-gen Service Desk), Smart and Sustainable Workplace Services, and AI-augmented Workforce Services.

The report names Capgemini, HCLTech, Infosys, TCS and Wipro as Leaders in all six quadrants. It names Fujitsu and NTT DATA as Leaders in five quadrants each. Accenture is named a Leader in four quadrants and Unisys in three quadrants. Datacom, DXC Technology and Kyndryl are named Leaders in two quadrants each. Deloitte, EY and PwC are named Leaders in one quadrant each.

In addition, Accenture, Cognizant, Datacom, KPMG, LTIMindtree, PwC, Tech Mahindra and Unisys are recognized as Rising Stars — companies with a ā€œpromising portfolioā€ and ā€œhigh future potentialā€ by ISG’s definition — in one quadrant each.

In the area of customer experience, Microland is named the global ISG CX Star Performer for 2025 among workplace services providers. Microland earned the highest customer satisfaction scores in ISG’s Voice of the Customer survey, which is part of the ISG Star of Excellenceā„¢ program, the premier quality recognition for the technology and business services industry.

The 2025 ISG Provider LensĀ® Future of Work Services report for Australia is available to subscribers or for one-time purchase on this webpage.

About ISG Provider LensĀ® Research

The ISG Provider LensĀ® 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, Mexico, 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.

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, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

Contacts

Press Contacts:

Laura Hupprich, ISG

+1 203 517 3100

[email protected]

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

[email protected]

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