Digital Workplace September Insights
Welcome to the September edition of our Digital Workplace Imperatives newsletter, where we will delve into latest news shaping the digital workplace landscape and key updates from the vendor ecosystem. Follow our LinkedIn Newsletter to stay informed about the most recent product launches, partnerships, and innovations driving digital workplace strategies of various organizations.
First things first: Let's stop glorifying overwork and focus on work-life-tech balance
Workplace-related stress is a serious issue, especially in high-pressure environments like major consulting firms. The recent tragic death of a 26-year-old EY employee from overwork has highlighted the severe impact of unhealthy work cultures and overwhelming workloads. Key factors contributing to workplace stress include long working hours, unrealistic deadlines, and a lack of work-life balance. Employees often face immense pressure to meet high expectations, leading to burnout, decreased productivity, and high turnover rates.
The competitive nature of these firms can create environments where employees feel undervalued and overworked. This affects their mental and physical health and undermines overall organizational performance. Companies need to invest in employee well-being, implement flexible work policies, and provide adequate support systems to address these issues.
While profits are essential for any business, they should never come at the cost of a fellow human’s health and well-being. Companies must recognize that a healthy, motivated workforce is the true driver of sustainable success. What are your thoughts on how companies can better balance profitability and employee well-being?
Now moving to major tech and services updates.
Technology providers updates
Atlassian supercharges Loom with Rewatch acquisition: Gen AI use cases for Meetings
Everest Group research reveals that most generative AI use cases struggle to achieve scaled adoption. However, meeting-related use cases (summarization, transcription, etc.) have been a notable exception. Whether through M365 Copilot or other solutions, enterprises have realized the most value when deploying AI for meeting-related tasks.
?On similar lines, Atlassian's acquisition of Rewatch, an AI-powered virtual meeting platform, aims to enhance Loom’s asynchronous video communication tool with features like automatic recording, detailed notes, and searchable transcripts.
ServiceNow goes “Agentic AI” way
While much is being said about 'agentic AI' being the future of generative AI, especially as 'out-of-the-box' use cases approach saturation, there's a deeper issue at play. Beyond just the saturation of ready-made solutions, a key driver for this shift is the failure of current Gen AI platforms to achieve scaled adoption and deliver a compelling ROI. This gap has prompted the industry to look toward 'agentic AI'—with its more tailored, autonomous capabilities – to address the limitations of horizontal platforms like Copilot and conversational AI.
I believe the road ahead for M365 Copilot will be challenging as the industry shifts toward agentic AI. M365 Copilot has struggled to gain widespread adoption among enterprises and has lost its first-mover advantage. Now, businesses are more likely to evaluate both out-of-the-box solutions like M365 Copilot and emerging agentic AI-based offerings, weighing their options more critically.
Glean, raises US$ 260 million to revolutionize AI solutions
Glean, a no code gen AI platform, integrates with Zendesk and Salesforce Service Cloud to streamline and support workflows. By providing ticket summaries, suggested actions, and relevant information, Glean supports service desk agents respond faster and more accurately. Glean Assist for Zendesk is available now, while the Salesforce Service Cloud integration is in beta stage.
https://www.datanami.com/this-just-in/glean-closes-260m-round-launches-ai-solutions-for- ?? zendesk-and-salesforce/
Google Gemini AI supercharges Workspace
Google is now integrating its Gemini AI capabilities directly into Google Workspace, enabling seamless functionality across Gmail, Docs, and Drive. While the effectiveness of this built-in AI is yet to be fully evaluated, caution is warranted. We've observed varying efficacy with similar solutions, such as M365 Copilot, which performs well in Teams but falls short in Excel. Notably, Google has announced that Gemini AI will not be priced as a separate add-on, as is currently the case, but will be included as part of the standard Google Workspace subscription.
Microsoft 365 Copilot Wave 2.0: Finally, Microsoft accepts shortcomings and remediation steps
Microsoft initially highlighted Copilot's accessibility and benefits across its M365 applications, but later subtly acknowledged its greater value within the Teams platform. To improve usability, they expanded Copilot's capabilities with 700 updates in Wave 2.0, extending enhanced features across the entire M365 suite, including web, work, and the newly launched Pages application. Additionally, they introduced Teams Premium, featuring AI-powered capabilities, along with the Copilot custom builder to streamline task automation.
Despite these advancements, Salesforce CEO Marc Benioff has voiced skepticism, likening Copilot to the infamous Clippy and questioning its utility for customers. It will be interesting to see whether Microsoft can prove Benioff wrong.
Microsoft Office Long Term Servicing Channel (LTSC) 2024: Tailored for offline and stable environments
Microsoft has announced the general availability of Office LTSC 2024, a specialized version of Office tailored for customers with specific needs, such as supporting devices that must remain offline or unchanged for extended periods. It includes updated productivity tools and select new features, like dynamic charts in Excel and enhanced search in Outlook.
This offering is expected to deliver value in niche areas where connectivity is limited or compliance requirements are strict. For example, it could benefit professionals in regulated industries like healthcare, life sciences (HLS), and banking and financial services (BFS), who often need to operate without internet access, such as research scientists. Another relevant use case could be in the Oil & Gas sector, where personnel working on rigs require offline access to critical tools.
Public sector pursuit: Advanced workplace solutions for governments
Tech companies like Ivanti and BMC are advancing digital workspace services for the public sector. Ivanti’s Endpoint Manager Mobile (EPMM) has earned certification from Germany’s BSI for securing Apple iOS Devices in Government Operations (iNDIGO), while BMC’s Helix portfolio now complies with Australia’s ISM security standards, enhancing IT service and operations management for government agencies. These efforts reflect tech providers' dedication to expanding their offerings while meeting strict regulatory requirements, ultimately boosting efficiency in public sector workplaces.
Service provider updates:
Everest Group published its Digital Workplace Services PEAK Matrix? Assessment for North America and Europe
I am delighted to share the results of our Digital Workplace PEAK matrix assessments - North America and Europe 2024. I have often talked about this in my conversations, but the performance of Indian-heritage vendors (HCLTech, Infosys, TCS, and Wipro) is phenomenal bagging leader positions in both NA and Europe. Decades back, these companies were considered challengers but now have successfully transitioned into leaders in workplace services
These flagship assessments were completed over a six-month period, and all the vendors were rigorously evaluated on vision, strategy, and market success. I thank all the vendors for their participation.
Excerpts from my meeting with Atos’ digital workplace leadership
I recently met with Atos’ workplace leadership. More details here: https://www.dhirubhai.net/posts/udit7290_dwp-atos-activity-7245371309520498689-8NPF?utm_source=share&utm_medium=member_desktop
As one of the largest workplace service vendors for decades, Atos has a strong track record of executing complex projects, such as the Paris Olympics. While recent internal challenges have impacted the company’s overall performance, including its workplace services, Atos remains a formidable player in the market. It will be interesting to observe how Atos regains its market share once these company-specific headwinds are resolved.
The Global Capability Center (GCC) Wave: GCCs are the new enterprises
The launch of Old Mutual’s Global Capability Hub in Hyderabad in partnership with Zensar, and Chevron’s $1 billion investment in a tech hub in Bengaluru, highlight the growing trend of Global Capability Centers (GCCs). With GCC spending rising exponentially, they have become a key buyer group for workplace services vendors, as these centers increasingly favor outsourcing workplace services to external providers.
领英推荐
AI-first hybrid communications in focus: Zoom and Mitel’s strategic partnership
Mitel's termination of its exclusive partnership with RingCentral initially sparked speculation about a potential exit from the Unified Communications as a Service (UCaaS) market and a shift toward on-premises solutions. However, Mitel's recent formation of an exclusive partnership with Zoom, allowing them to cross-sell Zoom's services to their vast customer base of over 70 million, signals a strategic focus on AI-driven hybrid communication solutions that blend both on-premises and cloud technologies. This approach positions Mitel to attract new clients while retaining existing customers who prefer traditional on-premises solutions.
Lenovo’s new AI Services: as-a-service models put Gen AI cost unpredictability to rest
Lenovo's launch of flexible, affordable, and scalable AI services represents a potential game-changer for digital workspaces. Solutions like TruScale GPU as a Service (GPUaaS) and XClarity One offer on-demand AI capabilities that enable businesses to enhance productivity and security. The as-a-service model allows enterprises to access these AI services without the burden of large upfront costs, utilizing a pay-as-you-go approach
TCS taps into Poland’s tech talent to enhance Europe service delivery
Tapping into Poland's robust Information and Communication Technology (ICT) talent pool strengthens TCS' European delivery network by leveraging government support. This strategic expansion enhances TCS' capacity to deliver consistent, customized, and near-shore solutions across Europe, benefiting customers worldwide.
Key deal updates:
Accenture and Unilever expand partnership to improve business agility with GenAI
Their extended partnership will see Unilever leveraging Accenture’s GenWizard platform to accelerate digital product development. This platform offers GenAI solutions, providing AI-powered support across all areas, including the digital workplace.
Klarna’s AI overhaul: Is AI a double-edged sword for the workforce?
Klarna's significant workforce reduction and the termination of partnerships with Salesforce and Workday highlight the dual impact of AI on productivity and employment. While AI-driven efficiencies have substantially enhanced Klarna's operational productivity by rebuilding its SaaS-based functionality at a much lower cost, they have also resulted in considerable job displacement. With approximately 50% of the workforce being cut, the situation underscores the pressing need for reskilling and workforce adaptation in the face of AI advancements.
TCS secures deal with McDonald's Philippines: Expanding APAC presence
Indian heritage companies, such as TCS, are increasingly being selected over global competitors by major enterprises for their proven success in digital transformation. This new partnership will allow McDonald's Philippines to modernize its IT infrastructure. Additionally, it will expand TCS' footprint in the country, where over 5,000 employees currently support diverse business operations.
LIC selects Infosys for its digital transformation
Infosys' partnership with LIC to develop a Next-Gen Digital Platform aims to revolutionize the insurance sector. This digital transformation will enhance employee experiences through personalized services, streamlined operations, and seamless omnichannel engagement. Infosys and TCS continue to dominate the Indian government and PSU digital transformation market, securing nearly all major deals. This highlights their strong presence in the country's IT landscape.
Key leadership updates
Leadership exodus continues
The recent leadership departures at Wipro and Cognizant highlight significant internal challenges amid their stagnant growth trajectories. Wipro’s loss of CTO Subha Tatavarti, along with other key executives, raises concerns about talent retention and leadership stability. Similarly, Cognizant’s resignation of CMO Gaurav Chand and other senior marketing executives suggests dissatisfaction and potential strategic misalignment. These leadership disruptions threaten to hinder both companies’ strategic initiatives, affect employee morale, and further complicate their efforts to stay competitive in the market.
UPDATES FROM EVEREST GROUP
Recent featured research
1.???? Digital Workplace Services PEAK Matrix? Assessment 2024 – North America
2.???? Digital Workplace Services PEAK Matrix? Assessment 2024 – Europe
3.???? Digital Workplace Services in North America and Europe – Provider Compendium 2024
Upcoming research
1.???? Microsoft Modern Work Services PEAK Matrix? Assessment 2024
2.???? IT Service Management Specialist PEAK Matrix? Assessment 2025
We invite you to participate in the upcoming assessment if you provide these services – contact us at [email protected]
That’s a wrap for this edition! I’d like to end by emphasizing the growing need for empathy in the workplace—something that seems to have diminished as we transition to hybrid work models.