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Microsoft Partners Aid Transformation of U.S. Public Sector

Government agencies are replacing old technology and moving to the cloud after COVID-19 reshaped their operations, ISG Provider Lens™ report says

Many U.S. public-sector organizations are jumping from legacy to cutting-edge technologies in the wake of the COVID-19 pandemic, often adopting Microsoft platforms with help from the company’s ecosystem partners, 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™ Microsoft Ecosystem Partners report for the U.S. public sector finds the sudden need for government agencies to serve constituents in a socially distant way, along with new federal funding provided in response to the pandemic, have led to a rapid increase in public-sector technology modernization projects.

“Agencies where old systems were at the end of their useful lives are now moving to the cloud and adopting automation,” said Nathan Frey, partner, ISG Public Sector. “The Microsoft partner ecosystem is especially strong in the U.S., so there are many providers that can help them.”

Public-sector organizations face many hurdles to implementing and integrating Microsoft technologies as they modernize, the report says. Issues include relatively high cost, a lack of familiarity with the technology and an aging workforce accustomed to legacy systems. Typically, government agencies lack the internal expertise to manage projects such as migrating enterprise applications to Azure.

However, some public-sector organizations have carried out mature cloud migrations that take advantage of the cloud’s unique capabilities instead of just reducing costs. This may include using multi-cloud and hybrid cloud environments for greater resilience and flexibility, optimizing applications for the cloud and adopting microservices architectures with containerized applications.

“Public agencies in the U.S. may lag the private sector in cloud migration, but the U.S. as a whole is still ahead of other countries in using the cloud,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.

Ready-made frameworks and accelerators from service providers, and in some cases end-to-end managed services, are helping organizations make the leap, ISG says. Other highlights of the report include discussions of how some public-sector organizations are using Microsoft 365 to address pandemic workplace disruptions and experimenting with Microsoft Power Platform to encourage innovation.

The 2022 ISG Provider Lens™ Microsoft Ecosystem Partners report for the U.S. public sector evaluates the capabilities of 28 providers across four quadrants: Managed Services for Azure, Microsoft 365 Services, Dynamics 365 Services and Power Platform Services.

The report names Accenture, Cognizant, DXC Technology, HCL and Wipro as Leaders in all four quadrants. It names IBM and SoftwareONE as Leaders in three quadrants each and NTT DATA as a Leader in two quadrants. Capgemini, Infosys and Rackspace Technology are named as Leaders in one quadrant each.

The 2022 ISG Provider Lens™ Microsoft Ecosystem Partners 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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