Australian enterprises are turning to flexible digital workplace services as they reconfigure workplace environments to increase agility and productivity, according to a new research report published by the Information Services Group (ISG), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens Future of Work (Workplace) Services report for Australia finds that a ‘significant percentage’ of Australian organisations are implementing hybrid work models in the wake of the Covid-19 pandemic. To achieve an ideal balance of in-office, at-home and hybrid work, they are seeking tools and services that simplify collaboration and communication across distributed teams for the best possible employee experience (EX).

"The workplace of the future is hyper-personalised for creativity and purpose in work," said Jason McAuliffe, workplace experience lead for ISG Asia Pacific. "Australian companies are willing to embrace digital technologies, especially AI, to create work environments that allow both employees and organizations to perform at their best."

A wide range of factors, including AI, advanced connectivity, cloud computing and geopolitical and economic pressures, are likely to force a major change in workplace solutions and services in the next few years, the report says.

In Australia, the pandemic accelerated digitalisation, making a permanent impact on workplaces. One effect of the rise in remote work in Australia has been large-scale migration from apartments in cities and inner suburbs to homes on the outskirts. This adds to the need for digital collaboration tools and is even causing some enterprises to establish smaller offices closer to where employees live, the study noted.

Australian businesses are also focused on staff retraining as a high priority for EX, the ISG says. The current skills of many Australian employees are mismatched with future requirements, which are expected to include creativity, critical thinking and technological skills.

In Australia and other regions, the requirements for workplace support services have changed significantly in the last few years, expanding from just cost reduction to providing a consumer-grade experience to internal IT users, the report says. Enterprises are seeking to reduce user effort by providing proactive, personalized support across multiple channels.

According to the report, automation and contextual AI have also reduced companies' dependence on voice by enabling automated chatbots and other virtual assistance tools. Now, generative AI offers the possibility of using large language models to improve support productivity and ticket resolution based on AI recommendations, even enabling zero-touch resolution.

"Australian enterprises recognise that generative AI is likely to shape the future of work in important ways," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "Service providers can help them tap into new capabilities for maximum return on investment."