U.S. Public Sector, Facing Major Changes, Shifts to the Cloud
June 30 2022 - 10:00AM
Business Wire
Government agencies are breaking out of
aging IT infrastructure and methods with managed hosting and
managed services, ISG Provider Lens™ report says
Public sector organizations in the U.S. are responding to major
changes in work and technology by shifting IT operations to private
or hybrid clouds, according to a new research report published
today by Information Services Group (ISG) (Nasdaq: III), a leading
global technology research and advisory firm.
The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data
Center Services and Solutions report for the U.S. Public Sector
finds the rise of remote work during the COVID-19 pandemic is only
one of several trends affecting the IT operations of government
agencies. Increased cybersecurity threats, a growing need for edge
computing, staff shortages and server systems reaching their end of
life are also changing public sector IT needs. For many agencies,
the answer is to shift more IT functions to cloud service
providers.
“Public sector agencies have maintained legacy IT estates well
beyond their end of life. This is an unsustainable strategy that is
no longer keeping pace with stakeholder demands,” said Nathan Frey,
partner, ISG Public Sector. “Private and hybrid clouds offer a way
to modernize IT within the government’s budget and staffing
limits.”
The public sector is grappling with the same trends other
industries face, along with its own specific challenges, the report
says. The pandemic forced agencies to connect with employees and
constituents online and triggered the “great resignation,” which
has included many retiring public-sector IT employees. Some
emerging public-sector applications, such as environmental
monitoring and roadside systems that communicate wirelessly with
vehicles, require the knowledge and expertise to roll out new edge
computing technologies.
More than in the private sector, many public sector
organizations in the U.S. still use aging mainframes based on
computer languages that few working programmers know, the report
says. With mainframe experts retiring, agencies have few choices
other than outsourcing their work to service providers or migrating
mainframe applications to new, cloud-native platforms.
The U.S. public sector is at a disadvantage when hiring staff
for new technologies, because private companies are better able to
pay the premium for talent in today’s tight labor market, ISG
says.
“Service providers are often better able to support special IT
needs because they can hire one expert to serve multiple clients,”
said Jan Erik Aase, partner and global leader, ISG Provider Lens
Research.
The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data
Center Services and Solutions report for the U.S. Public Sector
evaluates the capabilities of 24 providers across two quadrants:
Managed Services and Managed Hosting.
The report names Rackspace Technology and Unisys as Leaders in
both quadrants. It names Accenture, Ensono, Infosys, Lumen, NTT
Ltd., TCS and Wipro as Leaders in one quadrant each.
In addition, Lumen is named a Rising Star — a company with a
“promising portfolio” and “high future potential” by ISG’s
definition — in Managed Services.
A customized version of the report is available Unisys.
The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data
Center Services and Solutions report for the U.S. Public Sector 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 800 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220630005540/en/
Press Contacts:
Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG +1 978-518-4520
isg@matternow.com
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