No, that's a problem with your IT department being stuck about a decade behind.
At worst, it allows independent software vendors a small market for regular repeat business. At best, people just keep using XP the same way they've been doing for years.
This isn't being conservative about upgrades. This about an IT department refusing to learn to do anything they weren't doing in 2000.
Maybe the new search page uses features only found in the newest browsers. But since we have little details to go on (apart from the employee's canned response of "we are constantly updating functionality"), I'm skeptical that in fact they did this just for the sake of doing it "for the users' own good". That is wrong, imho