Agencies roiled by retirements, talent
shortages and new regulations standardize on modern, centralized
HCM platforms, ISG Provider Lens™ report says
U.S. public sector agencies have accelerated their adoption of
advanced human capital management (HCM) software platforms in the
face of multiple changes that have impacted the sector in the past
few years, according to a new research report published today by
Information Services Group (ISG) (Nasdaq: III), a leading global
technology research and advisory firm.
The 2023 ISG Provider Lens™ HCM Technology Platforms report for
the U.S. Public Sector finds that changes in the composition and
location of workforces, new employee and constituent expectations
and a wave of retirements have forced agencies to modernize human
resource management. Two of the steepest challenges today are
attracting and retaining talent and promoting diversity, equity and
inclusion, but agencies recognize other challenges will emerge.
“Public sector organizations are turning to centralized HCM
platforms so they can take a more holistic approach to staff
management,” said Nathan Frey, partner and lead, ISG Public Sector,
in the U.S. “What affects one aspect of human resources can
influence others, and they want the agility to address future
needs.”
State and local governments and educational organizations in the
U.S. are seeking improvements in HR operations, management and
efficiency, the report says. Their goals span several functional
areas, many of which have languished in these organizations due to
outdated systems, tools and interfaces.
Typically, public agencies begin by buying and implementing a
core HCM platform, which may be decades ahead of the systems it
replaces but still have limited built-in capabilities, ISG says.
Later, the agencies add modules for specific functions. Many
projects involve purchasing software and then outsourcing
implementation and maintenance, for which most agencies lack the
resources.
To address challenges around talent, organizations are
implementing solutions that automate processes and use analytics to
make data-driven decisions about recruitment and retention, the
report says. In payroll management, new HCM solutions are
automating routine tasks and providing better oversight and
regulatory compliance, reducing the risk of costly errors and
penalties.
“Transparency is critical for taxpayer-funded organizations,”
said Jan Erik Aase, partner and global leader, ISG Provider Lens
Research. “New HCM platforms provide real-time access to data,
which can help agencies increase accountability and public
trust.”
The report also explores other HCM trends in the U.S. public
sector, including the rising importance of remote workforce
management and mobile access to HR data for employees and
administrators.
For more insights into the HCM challenges facing the U.S. public
sector, including talent shortages and diversity mandates, and
ISG’s advice for addressing them, see the ISG Provider Lens™ Focal
Points briefing here.
The 2023 ISG Provider Lens™ HCM Technology Platforms report for
the U.S. Public Sector evaluates the capabilities of 36 providers
across three quadrants: Core HCM Platforms Plus Talent Management,
Payroll Management Solutions and Recruiting and Retention
Solutions.
The report names CGI, Infor, Oracle, SAP SuccessFactors and
Workday as Leaders in all three quadrants. It names ADP, CivicPlus
and HR Acuity as Leaders in one quadrant each.
In addition, Circa, Dayforce and NEOGOV are named as Rising
Stars — companies with a “promising portfolio” and “high future
potential” by ISG’s definition — in one quadrant each.
A customized version of the report is available from CGI.
The 2023 ISG Provider Lens™ HCM Technology Platforms report for
the U.S. Public Sector 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 900 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 1,600
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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version on businesswire.com: https://www.businesswire.com/news/home/20240313968242/en/
Press: Will Thoretz, ISG +1 203 517 3119
will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG +1 978-518-4520
isg@matternow.com
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