U.S. Firms Embrace Modernized HR Outsourcing for Transformation
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3 Sources
[1]
U.S. Firms Transform HR with Modernized Outsourcing
Services help companies meet strategic goals by improving decision-making, employee experiences and business outcomes, ISG Provider Lensâ„¢ 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 Lensâ„¢ 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 Lensâ„¢ Focal Points briefing here. The 2024 ISG Provider Lensâ„¢ 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 Lensâ„¢ 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 Lensâ„¢ Research The ISG Provider Lensâ„¢ 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.
[2]
U.S. Firms Transform HR with Modernized Outsourcing By Investing.com
Services help companies meet strategic goals by improving decision-making, employee experiences and business outcomes, ISG Provider Lensâ„¢ report says STAMFORD, Conn.--(BUSINESS WIRE)--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: NASDAQ:III), a leading global technology research and advisory firm. The 2024 ISG Provider Lensâ„¢ 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 Lensâ„¢ Focal Points briefing here. The 2024 ISG Provider Lensâ„¢ 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 (NYSE:ACN), bswift, Businessolver, IBM (NYSE:IBM), TCS, TELUS Health and WTW as Leaders in one quadrant each. In addition, Aptia and Infosys (NS:INFY) 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 Lensâ„¢ 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 Lensâ„¢ Research The ISG Provider Lensâ„¢ 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.
[3]
U.S. Firms Transform HR with Modernized Outsourcing - Information Servs Gr (NASDAQ:III)
Services help companies meet strategic goals by improving decision-making, employee experiences and business outcomes, ISG Provider Lensâ„¢ 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) III, a leading global technology research and advisory firm. The 2024 ISG Provider Lensâ„¢ 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 Lensâ„¢ Focal Points briefing here. The 2024 ISG Provider Lensâ„¢ 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 Lensâ„¢ 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 Lensâ„¢ Research The ISG Provider Lensâ„¢ 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) 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20240719533705/en/ Market News and Data brought to you by Benzinga APIs
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A new study reveals that U.S. companies are increasingly adopting modernized HR outsourcing strategies to enhance efficiency and adapt to changing workforce dynamics. This shift is driven by the need for agility, cost-effectiveness, and access to specialized expertise in human resources management.
Shift Towards Modernized HR Outsourcing
U.S. firms are increasingly turning to modernized HR outsourcing as a strategic approach to transform their human resources operations. This trend, highlighted in a recent study by Information Services Group (ISG), reflects a growing recognition of the benefits that outsourcing can bring to HR functions
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.Key Drivers of HR Outsourcing
The adoption of HR outsourcing is driven by several factors:
- Cost Reduction: Companies are seeking ways to optimize their HR spending.
- Access to Expertise: Outsourcing provides access to specialized HR knowledge and skills.
- Technology Integration: Modern HR outsourcing often includes advanced technological solutions.
- Focus on Core Business: Outsourcing allows firms to concentrate on their primary business activities
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Trends in HR Outsourcing Services
The study identifies several key trends in HR outsourcing:
- Comprehensive Service Offerings: Providers are offering end-to-end HR solutions.
- Cloud-Based Platforms: There's a shift towards cloud-based HR management systems.
- Data Analytics: Increased use of analytics for workforce insights and decision-making.
- AI and Automation: Integration of artificial intelligence and automation in HR processes
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Impact on Workforce Management
Modernized HR outsourcing is significantly impacting how companies manage their workforce:
- Enhanced Employee Experience: Improved self-service options and personalized HR services.
- Agile Workforce Planning: Better ability to adapt to changing business needs.
- Compliance Management: Improved handling of complex regulatory requirements.
- Talent Acquisition and Retention: Access to advanced recruitment tools and retention strategies
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Market Outlook
The HR outsourcing market in the U.S. is expected to grow significantly:
- Increased Adoption: More companies, especially mid-sized firms, are expected to embrace HR outsourcing.
- Provider Evolution: HR service providers are continually evolving their offerings to meet changing demands.
- Technology-Driven Growth: The integration of advanced technologies is expected to drive market growth
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Challenges and Considerations
While the benefits are clear, companies must also navigate challenges:
- Data Security: Ensuring the protection of sensitive employee information.
- Cultural Fit: Aligning outsourced HR services with company culture.
- Change Management: Managing the transition to outsourced HR functions effectively
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