The U.S. public sector is undergoing a significant transformation in workplace design and operations, driven by the integration of generative AI, hybrid work models, and experience-focused strategies, according to the 2025 ISG Provider Lens® Future of Work Services report. Public agencies, particularly at the state, local, and education (SLED) levels, are moving beyond isolated technology upgrades to implement comprehensive, unified workplace strategies that span IT, human resources, and facilities management. Hybrid work has evolved from a temporary arrangement to a core component of public sector workplace planning. Agencies are now adopting structured frameworks that ensure experience parity—equal access to tools, information, and collaboration opportunities—regardless of whether employees work on-site or remotely. This shift is supported by advanced infrastructure and experience-based working models that allow employees to choose the most productive work environment. Generative AI has transitioned from pilot programs to enterprise-wide deployment. Public agencies are using GenAI to automate service desks, enhance predictive analytics, and improve collaboration across distributed teams. ISG anticipates that agentic AI—autonomous digital agents capable of handling complex tasks—will become mainstream in the public sector by 2026, particularly in HR, citizen services, and support operations. To measure and improve workplace performance, agencies are increasingly replacing traditional service-level agreements (SLAs) with experience-level agreements (XLAs). These contracts use sentiment analytics and behavioral telemetry to track employee satisfaction and productivity, enabling continuous service improvement. Sustainability is also a growing priority. Over 45% of public sector real estate occupiers plan to adopt energy and emissions management tools powered by IoT, digital twins, and AI-driven analytics to monitor and reduce environmental impact in real time. According to Nathan Frey, ISG partner and Public Sector lead, “Public sector digital workplace transformations have entered execution phase.” He emphasized that hybrid work, AI augmentation, and sustainability are now central to how agencies define and measure success. The report highlights the growing need for service providers with deep public sector expertise, who can act as transformation partners rather than just vendors. ISG evaluated 34 providers across six quadrants: Workplace Strategy and Enablement Services, Collaboration and Next-gen Experience Services, Managed End-user Technology Services, Continuous Productivity Services, Smart and Sustainable Workplace Services, and AI-Augmented Workforce Services. Accenture, Infosys, NTT DATA, and Unisys were named Leaders in all six quadrants. CGI leads in five, while HCLTech and Kyndryl each lead in four. Deloitte and Zones are Leaders in two quadrants, and Cognizant, DXC Technology, Red River, and TCS each lead in one. In customer experience, Microland was recognized as the 2025 ISG CX Star Performer, achieving the highest customer satisfaction scores in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program. The full report is available to subscribers or for individual purchase. ISG Provider Lens® research combines data-driven analysis with firsthand insights from ISG’s global advisory team, helping organizations make informed decisions about technology sourcing and service providers.