Services help companies meet strategic goals
by improving decision-making, employee experiences and business
outcomes, ISG Provider Lens™ report says
Enterprises in the U.S. are reinventing their approach to human
resources with the help of outsourcing providers that are making
significant investments in new technologies, according to a new
research report published today by Information Services Group (ISG)
(Nasdaq: III), a leading global technology research and advisory
firm.
The 2024 ISG Provider Lens™ Transformational HR Outsourcing
Services (HRO) report for the U.S. finds companies are reimagining
multiprocess HRO in response to technological advances, client
demands and the growing complexity of employing workers in the
U.S., especially around health care and compliance. New tools, such
as generative AI (GenAI), give enterprises more tools to bring
about these changes.
“The HR environment is constantly changing, with rising costs
and new employee expectations,” said Stacey Cadigan, partner, Human
Capital Management, for ISG in the Americas. “Organizations that
partner with providers can survive and thrive by adapting to these
conditions with the help of technology-enabled solutions.”
Multiprocess HRO emerged two decades ago as providers
consolidated transactional HR activities to increase efficiency and
reduce labor costs, the report says. Their solutions have evolved
since then, though not as fast as in some other types of
outsourcing, because HR tasks are performed by employees throughout
a company using a wide range of software platforms.
Now, the HR function is expanding beyond back-office support for
transactions and compliance to a more strategic role in positioning
enterprises for better business outcomes, ISG says. Companies are
assigning HR staff to specialized cases and strategic roles more
than to routine tasks. HRO providers make this change possible with
solutions that are based less on savings from offshoring and more
on automation that complements human expertise.
U.S. enterprises are adopting new HRO services based on
next-generation technologies. These give HR and business leaders
better information and offer employees personalized experiences
regardless of device or location, the report says. Strengthened by
these services, HR departments are improving overall business
outcomes in addition to operational performance.
Enterprises and service providers are already using AI for many
forms of HR automation, and GenAI is quickly gaining momentum, ISG
says. AI-enabled services so far have been aimed primarily at areas
with low variability and few process steps, such as helping to
generate job descriptions and onboarding packages. Service
providers have built GenAI into their services and are
demonstrating ways it can reduce the cost and complexity of HR
management, especially in recruiting, employee learning and contact
centers.
“Service providers and clients together have already identified
multiple use cases for GenAI,” said Jan Erik Aase, partner and
global leader, ISG Provider Lens Research. “With technology
advancing this quickly, it is time for companies to transform
HR.”
The report also explores other HRO trends in the U.S., including
the introduction of outcome pricing for services and the increasing
importance of better health insurance carrier integration.
For more insights into the HRO challenges facing U.S.
enterprises, including reducing turnover and keeping up with the
latest technology, along with advice for addressing these issues,
see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ Transformational HR Outsourcing
Services (HRO) report for the U.S. evaluates the capabilities of 22
providers across two quadrants: Multiprocess HR Outsourcing (MPHRO)
Services and Health and Welfare (H&W) Benefits Administration
Services.
The report names Alight as a Leader in both quadrants. It names
Accenture, bswift, Businessolver, IBM, TCS, TELUS Health and WTW as
Leaders in one quadrant each.
In addition, Aptia and Infosys are named as Rising Stars —
companies with a “promising portfolio” and “high future potential”
by ISG’s definition — in one quadrant each.
Customized versions of the report are available Apita and
Businessolver.
The 2024 ISG Provider Lens™ Transformational HR Outsourcing
Services (HRO) report for the U.S. 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, Mexico,
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.
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 AI and 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/20240719533705/en/
Press Contacts: 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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