ISG Provider Lens™ Future of Work Services - Workplace Strategy and Enablement Services - U.S. Public Sector 2024

U.S. SLED agencies need help in modernizing their work environments for a secure and efficient future of work

Digital workplaces: Transforming the future of U.S. public services

State and local government and educational (SLED) institutions are undergoing a significant transformation. They are rapidly transitioning to digital workplaces that are more manageable, efficient and equipped to handle the demands of a technology-driven society. This shift is driven in large part by the sector’s widespread and accelerating adoption of the following:

• Remote and hybrid work models: Offering employees greater flexibility and attracting a wider talent pool
• Cloud-based infrastructure: Providing scalable and cost-effective solutions for data storage and application access
• Digital tools for collaboration and communication: Enabling seamless teamwork across diverse locations

However, these advancements come with their own set of challenges for SLED organizations. The most impactful challenges through at least year-end 2025 include the following:

• Overburdened IT teams: SLED IT departments, often understaffed, struggle to keep pace with the evolving digital landscape, requiring innovative solutions and outsourcing of some tasks.
• Fragmented solutions: Many agencies have implemented digital tools and services in silos, creating management challenges and hindering data integration. Streamlining and consolidation are necessary to mitigate this.
• Citizen service expectations: Citizens increasingly expect seamless online interactions with government agencies. Services must thus be user-friendly, accessible and efficient.

Critical capabilities for digitalizing public sector workplaces

SLED agencies must prioritize the following critical capabilities to address the abovementioned challenges while enabling, improving, integrating and managing digital workplaces and workers:

• Workflow automation: Leveraging tools such as RPA to streamline routine tasks, freeing HR for more strategic work
• Unified communications and collaboration: Implementing unified-communication-asa- service (UCaaS) platforms to enhance communication and collaboration across diverse teams, regardless of location
• Advanced data analytics: Utilizing data insights from various sources to improve decision-making, optimize resource allocation and identify areas for service improvement
• Integrated cybersecurity: Ensuring robust security across all services and devices with a focus on data protection, threat prevention and user authentication
• Mobile and remote work support: Providing employees with the necessary tools and policies to succeed in a mobile, remote or hybrid work environment
• Training and change management: Implementing comprehensive training programs to help employees adapt to new digital work practices and fostering a culture of continuous learning

Unique SLED considerations

In addition to including the critical capabilities outlined above in their digital workplace strategy, planning,  development and implementation initiatives, SLED agencies face unique considerations when building their digital workplaces as follows:

• HR versus IT focus: SLED agencies may prioritize either HR or IT leadership for digital workplace initiatives; determining the appropriate balance depends on the specific agency’s needs and existing structures.
• Comprehensive UX: Digital solutions must cater to both internal and external users.

Services should be citizen-centric, ensuring a positive and efficient UX.

• Regulatory compliance: Adherence to data security, privacy and accessibility regulations such as Health Insurance Portability and Accountability Act (HIPAA), Family Educational Rights and Privacy Act (FERPA) and Americans with Disabilities Act (ADA) is paramount when developing and implementing digital solutions.
• Legacy system integration: New solutions must seamlessly integrate with existing IT infrastructure to avoid data silos and ensure smooth operation.
• Scalability and flexibility: Services should adapt to the changing needs and technological advancements for the agency’s future growth.
• Accessibility and sustainability: Agencies must ensure inclusive services that cater to users with disabilities and incorporate environmentally conscious practices into their digital strategies.
• Procurement regulations: Understanding and navigating government procurement processes is crucial to ensure regulatory compliant and cost-effective acquisition of digital solutions.
• SLAs and contracts: Clearly defined SLAs with vendors are essential to guarantee performance, uptime and support for the chosen digital workplace solutions.

Future disruptions in public sector workplaces

Several emerging and rapidly evolving trends will disrupt and transform the future of work in the U.S. public sector in the coming years. This will likely drive providers to accelerate and expand portfolios while enforcing innovative use of technologies, tools and solutions to address the rising challenges in the sector. The current key disruptive trends in the sector include the following:

• Advanced AI: Using ML and large language models (LLMs) to automate complex tasks, generate data-driven  insights and provide personalized citizen services
• Evolving workforce models: Increased prevalence of remote and hybrid work models, potentially including a surge in contract and freelance workers
• Immersive technologies: Using AR and VR to enhance training experiences, facilitate collaboration across locations and improve remote work environments
• IoT for efficiency enhancement: Deploying connected devices to improve operational efficiency, automate data collection and personalize the UX for both citizens and employees
• Blockchain for security: Using blockchain technology for its potential to increase trust and security in digital  workplaces by ensuring data immutability and secure transactions
• Human-machine collaboration: AI possibly acting as an assistant rather than a replacement, augmenting human capabilities and enabling more seamless collaboration between humans and machines
• Ethical technology adoption: Intensifying focus on responsible AI use, data privacy and algorithmic fairness,  requiring robust policies and regulations in the public sector

What makes a leader in the digital workplace

Leading service providers stand out mostly through a keen understanding of clients’ current and emerging needs in the digital workplace. This feature translates into a comprehensive portfolio that addresses the present challenges and is adaptable to overcome those on or just over the horizon.

Leaders often go beyond simply offering services by curating specific tools, technologies and solutions tailored to the unique requirements of government agencies and educational institutions. This targeted approach ensures that clients receive solutions that directly address their strategic goals and enable improved day-to-day operations without unnecessary complexity.

However, a strong portfolio is just one piece of the puzzle. Leading providers further solidify their advantage through deep sector presence and influence, allowing them to closely understand government and educational clients’ specific needs and challenges. With the resources necessary to deliver exceptional value, leaders can build strong, long-term client relationships.

Strategic partnerships are essential to being a leader in the digital workplace. Partnering with other industry leaders, emerging technology developers and toolmakers, service providers expand their portfolios, allowing for greater adaptability and a comprehensive range of solutions to address clients’ evolving needs. Leading providers also  leverage partnerships to strengthen their competitive presence by multiplying client relationships, industry influence and access to broad channel networks.

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