World-renowned research and analytics company Gartner recently introduced the latest version of its Magic Quadrant report for Outsourced Digital Workplace Services (ODWS) in 2023.
According to Gartner, demand for ODWS solutions is growing as companies deal with economic challenges, and struggle to attract talent in a skills-short marketplace. Service providers in this industry can provide companies with more of the resources they need to streamline workflows, deliver excellent customer service, and remain competitive in an evolving world.
Not only do ODWS solutions provide companies with access to valuable human resources, but they can also assist organizations in achieving their goals around automation, sustainability, and continued innovation. The Gartner report examines 17 top competitors in the Outsourced Digital Workplace Services space today, and identifies a total of 7 market leaders.
Defining Outsourced Digital Workplace Services
Gartner identifies ODWS solutions as offerings that provide companies with a range of resources for process management and growth. Outsourced Digital Workplace Services can include solutions providing remote “service desk” support to end users, end-user device support, PC provisioning tools, and user experience centric services.
Some ODWS providers also provide access to artificial intelligence, automation, self-healing intelligence, and services designed to enhance business outcomes. Gartner believes the core solutions offered by ODWS providers should focus on providing ubiquitous, integrated, and streamlined digital workplace solutions to employees. Leading vendors concentrate on finding ways to enhance engagement, productivity, and digital dexterity in any business strategy.
Notably, however, Gartner also highlights the exact solutions offered by ODWS providers can be diverse, spanning across a range of capabilities such as:
- Desktop virtualization: From dedicated VDI and application solutions to full DaaS offerings, adhering to elastic and utility consumption models.
- Cloud-based app end-user support: Dedicated assistance with mainstream cloud applications, such as Microsoft 365, G-Suite, and Salesforce.
- Experience-level agreements: XLAs leveraging digital experience monitoring, sentiment analysis, and overall experience.
- Field service and depot support: Traditional deskside support for issues which can’t be resolved remotely or with autonomous technology.
- Intelligent automation: Support implemented through bots, machine learning applications, and automated workflows.
- Knowledge management: Knowledge management tools underpinned by analytics tools capable of analyzing and searching through structured data.
- Multi-channel on-demand support: Assistance delivered through multiple channels, such as email, phone, and chat.
- Ongoing change management: Guidance through change management initiatives measured through the use of UX metrics.
ODWS solutions may also include support with peripheral vending tools, smart lockers, and support kiosks, persona-based support personalized to the needs of each user, and self-service assistance. Additionally, vendors may help with the implementation of smart workplaces (leveraging AI and IoT devices), UCaaS platforms, virtual personal assistants, and extended reality tools, such as virtual and augmented reality.
Leaders
Gartner positions leaders in the ODWS Magic Quadrant as vendors capable of skillfully delivering solutions, with a clear understanding of their customers goals. Leaders consistently build and improve their competencies in the ODWS industry, and adapt to the changes of the marketplace. The 7 leading brands chosen by Gartner based on their completeness of vision and ability to execute are:
- Tata Consultancy Services
- Wipro
- DXC Technology
- Fujitsu
- HCLTech
- NTT Data
Tata Consultancy Services
TCS boasts approximately 522 global ODWS clients, as well as more than 4.6 million service desk users, and 5.2 million device support customers. Gartner drew attention to TCS’s excellent balance of vision and execution, highlighting the TCS Cognix platform, which offers cloud-first, platform-led services on a catalog-based consumption model. TCS also offers customers a large selection of pricing models, making their services more accessible to clients, and benefits from an excellent level of customer satisfaction. Notably, however, the company is currently experiencing issues with high attrition rates, and limited access to local resources.
Wipro
Focusing on a human-centric design to develop stronger workplace experiences, Wipro is reimagining the collaborative landscape with its Live Workspace solution. The company is consistently investing in emerging technologies, and leverages a strong focus on automation, to help minimize repetitive workflows. Gartner also notes Wipro has experienced positive growth in recent years, and reports excellent levels of customer satisfaction. First-call resolution levels for the company are among the best recorded in the Magic Quadrant. However, Wipro is taking an experimental approach to ODWS growth, and like TCS, suffers from high attrition rates.
DXC Technologies
Lately, DXC Technologies has been increasing its focus on employee experience metrics, leveraging Qualtrics to capture employee sentiment and workforce perceptions. Gartner champion’s the company’s fantastic device management services, which assist in managing Capex costs. Additionally, DXC’s ODWS strategy revolves around selling value-focused clients, which helps to differentiate it from its competitors. Unfortunately, the company still needs space to mature in some aspects of the ODWS world, and is struggling to deliver a consistent experience to legacy clients.
Fujitsu
With a strong focus on sustainability, evidenced by its Uvance strategy, Fujitsu is capturing the attention of eco-conscious customers. The ODWS vendor is increasing its focus on satisfaction levels, utilizing NPS and other CX metrics to enhance employee experience and productivity. It also has a strong focus on mid-sized enterprises, which other organizations overlook. Notably, though, Gartner pointed out that Fujitsu has a relatively siloed delivery approach, and limited participation in agile co-creation deals, which may impact its growth.
HCLTech
To enhance its CX strategy, HCLTech has developed a Digital Experience Office, helping to enable sustainable, effective workplaces for customers. Additionally, the company has a strong focus on XLAs, with 72% of clients using contractual XLAs in their strategies. The company has developed multiple strategies to enhance the customer journey and productivity, and focuses on delivering a personalized level of support to its clients. Gartner did note, however, that HCLTech may not be the best fit for SMEs, and may have a higher attrition rate than some other market leaders.
NTT Data
Gartner applauded NTT Data’s commitment to developing new technologies for ODWS differentiation, such as virtual offices with metaverse technologies and real-time translation capabilities. NTT Data also has a wide range of flexible and high-tech ODWS capabilities, and has recently combined its services with NTT Ltd outside of Japan, to enhance its digital consulting, telecom and BPO abilities. However, NTT does need to work on developing its customer satisfaction levels according to Gartner, and enhancing its global presence in the market.
Challengers
According to Gartner, Challengers in the ODWS Magic Quadrant execute their vision well, but have a limited view of the market direction. Some are poised to join leaders, while others need to prepare more aggressively for the future. Gartner notes that the Challengers in this year’s report are following closely behind the leaders, as the ODWS market is still maturing. The 4 Challengers from this year’s Magic Quadrant are:
