Europe Catching Up to Retail Technology Revolution
European retailers are modernizing their IT capabilities to adapt to changing consumer behavior in the wake of the COVID-19 pandemic, but still lag behind retailers in the U.S. and other markets, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2022 ISG Provider Lens™ Retail Services report for Europe and the U.K. finds companies in the region are engaging in digital transformation to support growing use of e-commerce and demand for channel-agnostic shopping experiences. The region is still catching up with markets such as the U.S. and China, with retailers based in northern and western Europe moving more quickly than those in eastern European markets, ISG says.
“More European retailers are creating new sales channels, and we expect this trend to accelerate,” said Sunder Pillai, director and leader, Retail and CPG, at ISG. “Service providers are helping companies create a unified shopping experience across all channels.”
The grocery, fashion and apparel sectors are implementing new retail technologies most aggressively, the report says. Digital transformation allows them to launch popular new shopping experiences incorporating social commerce, voice commerce, curbside pickup and home delivery. European retailers are also updating the technology in their brick-and-mortar stores, where customers have started to return, expecting new features such as cashless and checkout-free shopping.
Digital transformation and a unified customer experience require resilient supply chains, so retailers are working with service providers to integrate supply-chain systems for a free flow of information, ISG says. Europe has fewer warehouses and distribution centers than other regions, so service providers are helping retailers use stores as mini fulfillment centers for digital orders.
The growth of digital business is also generating unprecedented amounts of localized data on customer behavior and preferences. Retailers are consolidating this information in structured data platforms that allow them to build a unique profile for each customer.
“With help from service providers, companies are ready to roll out more personalized marketing campaigns that increase loyalty,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.
The report also examines other trends among European retailers, including cloud migration and record-setting growth in the adoption of managed services.
The 2022 ISG Provider Lens™ Retail Services report for Europe and the U.K. evaluates the capabilities of 23 providers across three quadrants: CX Transformation Services, Platform Migration Services and Managed Services.
The report names Accenture, Capgemini, Cognizant, HCL, Infosys, TCS and Wipro as Leaders in all three quadrants.
The 2022 ISG Provider Lens™ Retail Services report for Europe and the U.K. 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, 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.
A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 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 automation, 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 1,300 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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Contact information
Press Contacts:
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
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