ISG Provider Lens™ Future of Work Services - Workplace Strategy and Enablement Services - U.S. 2025

Workplace services drive transformation through GenAI, hybrid work and sustainability

GenAI maturity shifts from experimentation to integration

In 2024, GenAI was a promising disruptor. In 2025, it is a foundational capability. U.S. enterprises are no longer piloting GenAI. They are embedding it across workplace services, from AI copilots and agentic automation to predictive analytics and immersive collaboration. According to ISG’s analysis of public research, over 75 percent of large enterprises use GenAI in at least one business function, with workplace services among the most active domains.

Providers have responded by launching proprietary GenAI platforms, copilots and orchestration layers. TCS’ Cognix, Infosys’ Topaz and Wipro’s GenAI Foundry are examples of how service providers are productizing GenAI to deliver measurable business outcomes. The focus has shifted from cost savings to experience augmentation, workflow intelligence and adaptive learning.

However, challenges remain. Many enterprises lack a cohesive GenAI governance model, and fewer than half are tracking ROI on GenAI investments. Providers that offer strategic advisory, ethical AI frameworks and industry-specific copilots are gaining traction.

Hybrid work recalibrated: From policy to purpose

The hybrid work debate has evolved. In 2025, it is no longer about where employees work; it is about why and how. While some Fortune 500 firms have mandated full-time office returns, most U.S. enterprises have settled into structured hybrid models. According to BuildRemote, 84 percent of companies with public workplace policies operate on a hybrid schedule.

Yet, the return-to-office (RTO) push has triggered backlash. A 2025 GAO report found that rigid RTO mandates often reduce productivity and increase attrition. Enterprises are now focusing on environment-based working (EBW), designing spaces and policies around employee needs, not executive preferences.

This shift has elevated the role of workplace services. Providers are helping clients reimagine offices as collaboration hubs, using AI to optimize space utilization, personalize environments and support inclusive, flexible work. Experience parity that ensures a consistent employee experience across remote and physical settings is now a core KPI.

Experience management becomes a strategic imperative

Experience level agreements (XLAs) have moved from hype to maturity. The XLA Institute’s 2025 report shows that nearly 70 percent of organizations plan to adopt XLAs by 2026. Experience is no longer a soft metric. It is a strategic driver of productivity, retention and innovation.

Providers are embedding XLAs into service delivery, using sentiment analytics, behavioral nudging and real-time telemetry. Platforms such as Infosys’ DWX Command Center and Kyndryl’s Experience Conductor are enabling proactive, personalized support. Unisys’s XLA 4.0 and Wipro’s AI Live Workspace exemplify how GenAI is being used to orchestrate experience across IT, HR and facilities management.

Importantly, XLAs are expanding beyond IT. Healthcare, education and finance sectors are adopting experience frameworks to improve frontline engagement, compliance and service quality.

Sustainability: From compliance to competitive advantage

Sustainability has become a board-level priority. In 2025, U.S. enterprises are embedding ESG metrics into workplace services, driven by regulatory pressure, investor expectations and employee values. According to FM:Systems, 45 percent of occupiers plan to adopt energy and emissions management technology in the next 12 months.

Providers are responding with GreenOps dashboards, circular device programs and smart building solutions. TCS’ CleverEnergy, Wipro’s GreenOps Studio and HCLTech’s partnership with Circular Computing are examples of how sustainability is being operationalized.

Smart workplace technologies (IoT sensors, digital twins, and AI-powered space analytics) are enabling real-time tracking of energy use, occupancy and carbon emissions. These tools reduce costs and also enhance employee wellbeing and brand equity.

Workplace outsourcing: From cost center to transformation engine

The outsourcing model is evolving. Traditional workplace-only contracts are declining, while bundled transformation deals are rising. Enterprises now expect providers to deliver IT support and business outcomes, from talent enablement to ESG compliance.

According to KPMG, 81 percent of enterprises want providers to act as strategic collaborators, not vendors. This has led to a rise in hybrid outsourcing models, combining onshore leadership with offshore delivery, and integrating AI, automation and experience design into every engagement.

Providers that offer verticalized solutions, HITL (human-in-the-loop) AI services and outcomebased pricing are gaining market share. The shift from SLAs to XLAs is accelerating this transformation, aligning service delivery with employee satisfaction and business agility.

AI-augmented workforce: Redefining roles and skills

AI is not replacing workers; it is redefining work. By 2025, AI is expected to displace 85 million jobs but create 97 million new ones. The focus is shifting from automation to augmentation by using AI to enhance creativity, decision-making and collaboration.

Enterprises are investing in AI-first talent models, adaptive learning platforms and digital dexterity programs. Providers such as Accenture, Infosys and Capgemini are launching AI academies and immersive learning environments to support workforce transformation.

Lifelong learning is now a business imperative. According to Cengage, 60 percent of U.S. workers are actively reskilling to stay competitive. Providers that offer upskilling as a service, diversity, equity and inclusion (DEI)- integrated design and AI ethics consulting are becoming essential partners in talent strategy.

Conclusion: Workplace services as a strategic lever

In 2025, workplace services have evolved from operational necessities to strategic enablers of enterprise transformation. They now sit at the intersection of technology, talent, sustainability and experience, shaping how organizations attract, retain and empower their workforce.

The convergence of GenAI, hybrid work and ESG imperatives has redefined the expectations from service providers. Enterprises are no longer satisfied with reactive support or siloed IT functions. They demand integrated, intelligent and outcome-driven solutions that align with business goals and employee needs.

Providers that succeed in this environment are those that:

● Embed GenAI across the service stack to drive automation, personalization and continuous learning

● Design hybrid work with experience parity, smart infrastructure and flexible support models

● Operationalize sustainability through circular IT practices, carbon tracking and ESG-aligned service delivery

● Elevate experience through XLAs, sentiment analytics and immersive collaboration

● Enable workforce transformation with AI-augmented tools, adaptive learning and inclusive design

The U.S. market, in particular, is leading this shift. Enterprises are investing in workplace services to reduce costs and unlock agility, resilience and innovation. As the boundaries between IT, HR and facilities management blur, workplace services are becoming the connective tissue of enterprise strategy.

Looking ahead, the most successful providers will be those that act not as vendors, but as strategic partners, cocreating the future of work with their clients. They will offer not just technology, but vision, governance and measurable impact.

In this new era, workplace services are no longer about keeping the lights on. They are about lighting the way forward.

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