Digital transformations now look beyond efficiency to goals for resilience, responsiveness, sustainability, ISG Provider Lens™ report says

More enterprises in the U.S. are now implementing digital supply chains as competitive differentiators, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Supply Chain Services report for the U.S. finds that organizations are working to make their supply chains more resilient to disruptions and responsive to abrupt market changes. In the wake of major geopolitical events that have affected supply chains, including international conflicts and the COVID-19 pandemic, companies are seeking to prevent or quickly bounce back from supply or demand shocks.

“Cost is still a concern for supply chains, but capability is gaining importance,” said Bob Krohn, partner, manufacturing, for ISG. “Service providers are stepping up to help enterprises implement systems that meet their unique requirements.”

U.S. companies have been especially fast to adopt digital supply chains, due to lighter regulation in the U.S. and a higher willingness to take technology risks, ISG says. Many U.S. firms are undertaking digital transformation as they shift from global to regional or local supply chains to reduce the risk of future disruptions.

A growing number of companies are integrating AI into supply chains, in part because it can process large volumes of data and make real-time decisions, the report says. This is revolutionizing supply chain planning and forecasting, making those functions more agile and resilient. They are also beginning to use generative AI (GenAI), primarily for procurement and after-sales use cases such as warranty management, supply chain optimization and supplier risk assessment.

Aiming for more real-time insights and data-driven decision-making, U.S. enterprises are working to clean up and integrate data from throughout their supply chains, including from internal systems and external suppliers, ISG says. End-to-end visibility and process orchestration could improve supply and demand forecasts, order fulfilment and profitability. Providers are helping clients carry out this major transition, usually in one part of the supply chain at a time.

Companies in the U.S. are also starting to establish and track sustainability within supply chains to meet legal standards, corporate goals and customer expectations, the report says. In response to the movement toward a circular economy, which aims to reduce waste through repair, refurbishment and recycling, enterprises are taking steps to extend product lifespans.

“Laws extending producers’ responsibility for products are already in place in Europe and about to take effect in some U.S. states,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “U.S. companies are working with providers to comply with these rules.”

The report also explores other supply chain trends in the U.S., including growing demand for cloud-based supply chain BPO and for touchless supply chain planning.

For more insights into supply chain challenges facing U.S. enterprises, including the still-limited availability of customized solutions and services and the complexity of shifting from a global to a regional or local supply chain, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Supply Chain Services report for the U.S. evaluates the capabilities of 37 providers across four quadrants: Supply Chain Advisory and Consulting Services, Supply Chain IT Operations Services, Supply Chain BPO Services and Circular Supply Chain Services.

The report names Accenture, Genpact, HCLTech and Infosys as Leaders in all four quadrants. It names Capgemini, PwC and TCS as Leaders in three quadrants each. IBM and Tech Mahindra are named as Leaders in two quadrants each. Cognizant, Deloitte, EY, Wipro and WNS are named as Leaders in one quadrant each.

In addition, LTIMindtree is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Cognizant, Neo Tangent and Tech Mahindra are named as Rising Stars in one quadrant each.

In the area of customer experience, Genpact is named the global ISG CX Star Performer for 2024 among supply chain services providers. Genpact earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from NeoTangent and WNS.

The 2024 ISG Provider Lens™ Supply Chain Services report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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