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US Firms Embrace AI-Driven ESM for Digital Transformation


US Firms Embrace AI-Driven ESM for Digital Transformation
  • by: Source Logo
  • |
  • October 27, 2025

US enterprises are increasingly adopting enterprise service management (ESM) as a cornerstone for digital transformation, leveraging AI to unify workflows and drive measurable business value, according to the 2025 ISG Provider Lens® Enterprise Service Management — Services report for the US by Information Services Group (ISG) (Nasdaq: III). This shift extends ESM beyond traditional IT service management, integrating functions like HR, finance, and facilities into a cohesive, AI-driven ecosystem.

Quick Intel

  • US enterprises adopt AI-powered ESM for digital transformation.
  • ESM unifies HR, finance, facilities, and IT workflows.
  • AI automation reduces ticket volumes and resolves issues faster.
  • Integration with CRM and ERP enhances multicloud operations.
  • Outcome-based contracts align providers with business goals.
  • Hexaware named ISG CX Star Performer for 2025 in ESM services.

AI-Powered ESM as a Strategic Foundation

The 2025 ISG Provider Lens report identifies ESM as the "connective tissue" for digital operations, enabling US enterprises to align people, workflows, and technology for smarter service orchestration. By embedding AI and automation, companies reduce ticket volumes, minimize downtime, and resolve issues faster through intelligent chat and voice bots, freeing staff for higher-value tasks. “ESM has become the connective tissue for digital operations in US enterprises,” said Andy Miears, ISG partner, Adaptive Organizations. This approach positions ESM as an AI-native operating system, enhancing performance and user experience across organizations.

Integration with Business Systems

US companies are integrating ESM with systems like customer relationship management (CRM) and enterprise resource management (ERP) using prebuilt connectors, APIs, and low-code tools. This enables real-time visibility across multicloud environments and extends automation to areas like sustainability reporting, data pipeline management, and risk monitoring. The report highlights the growing adoption of platform-agnostic delivery models and full-stack observability, improving data management and operational agility.

Focus on Measurable Outcomes

Under pressure to maximize digital transformation value, enterprises are prioritizing ESM initiatives that deliver lower total cost of ownership, reduced technical debt, and greater agility. Outcome-based contracts are gaining traction, aligning providers and enterprises on shared objectives, cost models, and performance metrics. “US enterprises are reconceptualizing ESM as an intelligent ecosystem that links automation, analytics, and design thinking,” said Ashwin Gaidhani, lead author, ISG Provider Lens Research. This strategic shift views ESM as an investment for sustained business impact.

Leadership and Recognition in ESM Services

The ISG report evaluates 30 providers across three quadrants: Consulting and Advisory Services, Implementation and Integration Services, and Managed Services for Converged IT and Business Ops. Accenture, Capgemini, Cognizant, Infosys, LTIMindtree, TCS, Tech Mahindra, and Wipro are named Leaders in all three, while Deloitte, DXC Technology, Genpact, and HCLTech lead in two. Hexaware earned the ISG CX Star Performer title for 2025, reflecting top customer satisfaction scores.

This report underscores ESM’s role as a transformative force, with AI-driven automation and integration enabling US enterprises to achieve operational efficiency, enhanced user experiences, and measurable business outcomes.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

  • Enterprise Service ManagementAI Driven TransformationDigital TransformationAutomationISG Provider Lens
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