AI, Hybrid Work, and ESG: Reshaping Australian Workplaces

10/15/2025 – 08:00 PM

Enterprises partner with providers to satisfy employee expectations, local regulations, sector-specific needs, ISG Provider Lens^® report says

SYDNEY, Australia—Australian enterprises are fundamentally reshaping their digital workplace environments through the confluence of generative AI (GenAI), hybrid work models, and sustainability initiatives, according to a new report by Information Services Group (ISG) (Nasdaq: III), a global AI-focused technology research and advisory firm.

The 2025 ISG Provider Lens^® Future of Work Services report for Australia highlights a strategic shift among organizations towards digital workplace initiatives centered on AI-driven automation, advanced employee experience analytics, and stringent compliance with environmental, social, and governance (ESG) regulations. This trend is deeply intertwined with a national push for inclusivity, greater sustainability, and a broadened decentralization of the workforce.

“Australia is no longer just mirroring global trends; it’s forging its own distinctive digital workplace identity,” notes Jason McAuliffe, director and APAC Workplace and Experience lead at ISG. “Local businesses are strategically integrating AI ethics, user-centric experience design, and tangible ESG outcomes into their core technology strategies, aiming to achieve both cutting-edge innovation and heightened social responsibility.”

The report underscores the maturation of hybrid work models in Australia, evolving into well-defined frameworks. Employers are actively constructing inclusive work models that carefully balance employee flexibility with critical organizational accountability. ISG’s analysis indicates that over 80% of Australian enterprises have embraced hybrid work structures. Service providers are responding with IoT-enabled smart offices, digital twins, and highly personalized, persona-based services meticulously designed to support these hybrid environments. The emergence of regional delivery hubs underscores a national movement to decentralize services, bolstering hybrid work capabilities across both urban and rural landscapes, ensuring productivity across regionally dispersed teams.

Experience management is now a linchpin of workplace transformation. Companies are shifting from traditional service-level agreements to experience-level agreements (XLAs), directly correlating IT performance with employee satisfaction and overall business outcomes. Utilizing sentiment analytics, telemetry, and comprehensive omnichannel support, organizations are building adaptable service environments shaped by continuous feedback loops.

Generative AI has rapidly transitioned from experimental stages to integral infrastructure within Australian enterprises. Organizations are embedding AI to streamline workflow automation, enhance collaboration, and provide advanced analytics, deploying sophisticated AI copilots and agentic systems to support critical decision-making and knowledge management. Integral to this adoption is a commitment to robust governance and transparency, as highlighted by national initiatives focused on fostering responsible AI adoption.

“The convergence of AI advancements, evolving hybrid work models, and ESG imperatives is fundamentally reshaping Australian work strategies and workplace services,” notes Bruce Guptill, lead author of the report. “Enterprises are moving beyond simple efficiency gains, focusing on building intelligent, ethical, and sustainable systems that drive long-term competitive advantage.”

The report delves into additional trends shaping the Australian digital workplace, including the deployment of GreenOps platforms for optimized energy consumption and the integration of AI-powered learning tools designed to promote equity and facilitate continuous employee development.

The 2025 ISG Provider Lens^® Future of Work (Workplace Services) report for Australia assesses 37 providers across six key quadrants: Workplace Strategy and Enablement Services, Collaboration and Next-gen Experience Services, Managed End-user Technology Services, Continuous Productivity Services (including Next-gen Service Desk), Smart and Sustainable Workplace Services, and AI-augmented Workforce Services.

The report identifies Capgemini, HCLTech, Infosys, TCS, and Wipro as Leaders across all six quadrants, demonstrating their comprehensive capabilities in the Australian market. Fujitsu and NTT DATA are recognized as Leaders in five quadrants, further solidifying their positions. Accenture is named a Leader in four quadrants, while Unisys is recognized in three. Datacom, DXC Technology, and Kyndryl are Leaders in two quadrants each. Deloitte, EY, and PwC are recognized as Leaders in a single quadrant.

Furthermore, Accenture, Cognizant, Datacom, KPMG, LTIMindtree, PwC, Tech Mahindra, and Unisys are designated as Rising Stars, acknowledged by ISG for their promising portfolios and substantial future potential within specific quadrants.

Microland is distinguished as the global ISG CX Star Performer for 2025 within the workplace services sector. This recognition stems from achieving the highest customer satisfaction scores in ISG’s Voice of the Customer survey, a core component of the ISG Star of Excellence™ program.

The ISG Provider Lens^® Quadrant research series leverages empirical data, market analysis, and insights provided by ISG’s global advisory team to evaluate service providers. The research covers providers operating globally, across Europe, the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia, and Singapore/Malaysia, with plans for future expansion.

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm, partnering with over 900 clients, including 75 of the world’s top 100 enterprises. ISG leverages AI to help organizations achieve operational excellence and drive faster growth. Founded in 2006, the firm provides market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide.