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Digital Transformation Essential for Enterprises in Germany

Companies looking for the right technology partners to drive their digital enablement and ESG initiatives forward, ISG Provider Lens report says

Enterprises in Germany now see digital transformation as a necessary element of their business plans, and they are increasingly using providers of digital enablement services to enhance their competitive position, according to a new research report published by Information Services Group (ISG), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens Digital Business Enablement and ESG Services report for Germany finds enterprises in the country are using digital business providers to help them enhance their work environments, enable remote working, optimize manufacturing and supply chain processes, and support customer retention.

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“Digital enablement, from roadmap strategies to enablement of digital transformation, are now mainstream in Germany, and enterprises there need to engage with providers to stay competitive”

Germany’s accelerated digital evolution has delivered significant business benefits, together with user and CX benefits in many quantifiable areas, the report says.

“The rapid digital evolution among enterprises in Germany in the past two to three years has delivered significant business benefits, including improved employee and customer experiences,” said Dr. Daniel Gerster, ISG partner in DACH. “Many enterprises here are focusing on rolling out early digital transformation initiatives on a commercial level, to realize further benefits.”

In Germany, enterprises expect digital enablement providers to deliver maximum automation with autonomy, providing omnichannel and multiplatform compatibility, the report adds. They want service performance that is assured, regardless of overall utilization rates, and based on automated, predictive and integrated rapid provisioning tools.

Enterprises across Germany are focused on moving forward on their recent digital initiatives and are now seeking demonstrable return on investment, as well as a proven increase in efficiency, improved security and assured business continuity, the report says. Enterprises are also working with digital business providers to increase competitiveness in the market.

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The report notes that sustainability and environmental, social and governance (ESG) solutions and services, meanwhile, are in the early stages of adoption at many German enterprises. Due to energy price hikes and power supply uncertainty, many companies in Germany have considered green energy, alternate energy supplies, smart building controls and carbon offsetting and reduction methods. The early stages of the ESG market in Germany may focus on consulting and advisory services, monitoring solutions, and automation as a way to reduce emissions.

“Digital enablement, from roadmap strategies to enablement of digital transformation, are now mainstream in Germany, and enterprises there need to engage with providers to stay competitive,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “It is essential for enterprises to involve the right internal stakeholders in digital business and ESG initiatives, and to find the right service providers that can provide the support required to enable digital transformation.”

The 2022 ISG Provider Lens™ Digital Business Enablement and ESG Services report for Germany evaluates the capabilities of 42 providers across five quadrants: Business Consulting Services, Customer Experience Services, Supply Chain Transformation Services, Sustainability and ESG Services and Digital Reality Services.

The report names Accenture and Infosys as Leaders in all five quadrants and Arvato, Atos, IBM and T-Systems as Leaders in four. Capgemini is named a Leader in three quadrants, and Cognizant, HCLTech, Siemens and Tech Mahindra are named Leaders in two. Axians, CGI, Computacenter, DXC Technology, Publicis Sapient and T-Systems (Detecon) are Leaders in one quadrant.

In addition, HCLTech and Tietoevry are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

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