ISG Provider Lens™ report finds enterprises
optimizing IT assets, costs, productivity and capacity with new
cloud solutions, services for long-term impact
Enterprises in the U.K. have accelerated their adoption of
hybrid IT solutions and services to prepare for the long-term
economic effects of the COVID-19 pandemic, according to a new
report published today by Information Services Group (ISG) (Nasdaq:
III), a leading global technology research and advisory firm.
The 2021 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud
– Data Center Services & Solutions report for the U.K. finds
companies are implementing hybrid IT solutions, along with IT
operations led by artificial intelligence (AI), to optimize IT
assets, costs, productivity and capacity and reduce short-term
risks. This trend is part of an ongoing expansion of outsourcing in
the U.K., ISG says.
“U.K. enterprises are turning to IT outsourcing to maximize both
growth and productivity for a transformed post-pandemic economy,”
said Steve Hall, president, EMEA, and global head of digital
solutions for ISG. “Companies have started re-evaluating the
balance between the IT resources they keep in-house and those they
seek from partners.”
The impact of COVID-19 has put more pressure on CIOs and chief
technology officers to deliver digital transformation and cost
reduction, reversing a moderate drop in IT outsourcing deals across
verticals in the U.K. over the last five years, the report says. By
a wide margin, cost optimization is the main reason U.K. companies
use outsourcing, according to ISG. Business transformation and
higher service quality are the next-biggest factors.
In the wake of the pandemic, companies in the travel,
hospitality and retail sectors are forming new outsourcing
partnerships and renewing existing deals with an eye to cutting
costs, the report says. Meanwhile, pharmaceutical, technology,
utility and other enterprises continue to invest in digital
capabilities and cloud, network and data operations to support
artificial intelligence and machine learning.
Enterprises migrating to hybrid clouds can face significant
challenges, beginning with integration of current and legacy
systems, the report says. Other concerns may include security,
privacy, governance and internal management of cloud providers and
solutions. In some companies, a shortage of knowledge and skills
holds up implementation of hybrid IT services, leading the
organization to look outside for help in revamping business and IT
operations.
Many U.K. companies have implemented software-defined data
centers and hyperconverged infrastructure (HCI) in the past few
years, often using HCI for mission-critical applications,
particularly those developed with container services for
cloud-native applications, ISG finds. In addition, more enterprises
now rely on colocation centers as an extension of their business
and as a less expensive alternative to in-house facilities. The
U.K. has the largest and fastest-growing colocation market in
Europe, dominated by sites owned by hyperscale providers such as
Google Cloud, AWS and Microsoft, and it is expected to grow by
double digits over the next three years.
The 2021 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud
– Data Center Services & Solutions report for the U.K.
evaluates the capabilities of 62 providers across five quadrants:
Managed Services for Large Accounts, Managed Services for
Midmarket, Managed Hosting for Large Accounts, Managed Hosting for
Midmarket and Colocation Services.
The report names BT as a Leader in four quadrants and Ensono,
Fujitsu and Rackspace Technology as Leaders in three quadrants
each. Atos, Claranet, IBM and T-Systems are named as Leaders in two
quadrants each. The report names Accenture, CANCOM, Capgemini,
Computacenter, Digital Realty, DXC Technology, Equinix, Global
Switch, HCL, Hexaware, TCS, Telehouse, Unisys, Vodafone and Wipro
as Leaders in one quadrant each.
In addition, CANCOM, Cognizant, Infosys, Lumen, Mindtree,
Rackspace Technology and Sungard AS 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 Fujitsu and
Hexaware.
The 2021 ISG Provider Lens™ Next-gen Private/Hybrid Cloud
– Data Center Services & Solutions report for the U.K. 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., Germany,
Switzerland, the U.K., France, the Nordics, Brazil and
Australia/New Zealand, 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 700 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 1,300
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
www.isg-one.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210701005224/en/
Press Contacts: Will Thoretz, ISG +1 203 517 3119
will.thoretz@isg-one.com Kate Hartley, Carrot Communications for
ISG +44 (0)20 3457 6403 kate.hartley@carrotcomms.co.uk
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