ServiceNow Inc. unveiled new mobile technology features that enable employees to reserve workspaces and facility managers to utilize floor space as companies begin to reopen offices.
The return-to-work options aim to simplify what is sure to be a complicated process in a new hybrid home-office work environment across the country. Companies not only are staggering schedules, or hoteling, but also revamping workspaces for safety and productivity reasons.
“It’s all about the employee-reservation experience and movement management,” Blake McConnell, executive vice president of employee workflows at ServiceNow
told MarketWatch. “It’s about determining how many employees on any given day are back in the office, and accommodating them. We’re in this moment in time where people have to collaborate digitally.”
Tech companies — among the first to ask employees to work from home during the pandemic — are leading the return to the office by the fall. Their reopening plans offer a glimpse into office life of the next few years, with a heavy emphasis on a hybrid work model and three-day work weeks onsite.
ServiceNow estimates the total addressable market for employee workflows is expected to reach $20 billion in 2024 — a key reason why the company’s stock is up 33% over the past 12 months and trading at over $550 a share.
“Because of ServiceNow’s prevalence as an [information technology service management] vendor, many IT teams involved in space reservation system purchase decisions are already familiar with the platform,” IDC analyst Juliana Beauvais told MarketWatch. “ServiceNow has access to thousands of prospective buyers just by approaching its existing customers.”
One in five organizations worldwide plan to add at least one new app because of the COVID-19 pandemic, Beauvais said. “If you take just the [2,000 largest companies in the world],” she said, “that could represent upwards of $6 billion in new annual software licenses over the next three years.”
At an analyst day in May, the San Francisco-based company projected its annual revenue will double to $10 billion by 2024 and triple to $15 billion by 2026.
“We have tremendous momentum and an opportunity to enable digital transformation,” ServiceNow Chief Financial Officer Gina Mastantuono told MarketWatch.