Integrated workplace strategies improve employee experience, boost service delivery, ISG Provider Lens® report says
Organizations in the U.S. public sector are building connected digital ecosystems for workforce operations to improve mission execution, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The U.S. public sector is redefining the workplace as a strategic operating environment rather than a collection of technology tools. Success increasingly depends on aligning people, processes and digital capabilities to achieve measurable outcomes.Share
The 2026 ISG Provider Lens® Future of Work — Services report for the U.S. Public Sector finds that state, local government and education (SLED) organizations are refocusing workplace strategies from technology deployment to orchestration of work, people and environments. Agencies are modernizing mission-critical services while managing budget constraints, workforce shortages and expanding requirements for security, accessibility and responsible AI. Through workplace initiatives spanning IT, HR and facilities functions, organizations increasingly coordinate investments to improve operational performance and citizen experience.
“U.S. public sector organizations are redefining the workplace as a strategic operating environment rather than a collection of technology tools,” said Nathan Frey, partner at ISG. “Success increasingly depends on aligning people, processes and digital capabilities to achieve measurable outcomes.”
AI is becoming a pervasive element of daily operations in the U.S. public sector. Agencies are incorporating AI capabilities into collaboration platforms, service desks and workflows to automate routine activities and improve decision-making. To maximize long-term benefit from these technologies, organizations are investing in reskilling initiatives and establishing responsible AI practices that address transparency, accessibility and security requirements.
Hybrid work continues to evolve across offices, campuses, field locations and remote settings, requiring agencies to deliver consistent experiences for distributed workforces. Organizations are integrating digital collaboration platforms with physical workplaces to enhance productivity and employee engagement. Budget pressures and talent shortages are driving agencies to adopt automation, standardized platforms and lifecycle-based service delivery models to reduce complexity and increase efficiency.
Public sector organizations are placing greater emphasis on measurable business outcomes when evaluating workplace investments. Agencies increasingly use digital employee experience metrics and experience level agreements, in place of traditional service level agreements, to assess productivity, workforce engagement and service responsiveness. They are also consolidating fragmented technology environments through unified workplace strategies. Smart workplace technologies that improve energy efficiency and optimize space utilization are becoming more common in large government facilities and education campuses, ISG says.
“The agencies making the greatest progress treat digital workplaces as living environments that require continuous measurement and adjustment,” said Bruce Guptill, lead author of the report. “Providers that can combine experience metrics, responsible AI practices and cross-functional execution will help organizations achieve sustained operational improvement from workplace modernization.”
The report also explores other trends affecting U.S. public-sector digital workplace services, including the increasing importance of sustainability in workplace strategies and the growing investment in change management to help agencies realize the full value of transformation programs.
