Outsourcing Accelerates U.S. Firms’ Ongoing Payroll Progress
- Demand for payroll outsourcing remains high in the U.S. as enterprises seek new features to improve employee experience. Daily pay or earned wage access features have become mainstream. AI and ML tools are at the core of many payroll providers' services. Small companies are turning to outsourcing firms for simple payroll solutions.
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Companies still engaging service providers to add employee self-service, AI-based compliance and other features, ISG Provider Lens™ report says
The 2023 ISG Provider Lens™ Payroll Solutions and Services report for the
“U.S. employees increasingly expect self-service payroll options,” said Stacey Cadigan, partner, ISG Human Capital Management and Enterprise Transformation. “Companies are responding by removing barriers to digital engagement, usually through outsourcing.”
Daily pay or earned wage access features, which allow employees to access a portion of their wages outside of their regular pay period, have become mainstream in the
There is a continuing drive in the
Recent and ongoing business disruptions in the
AI and ML tools are at the core of many payroll providers’ services, helping enterprises both address the new challenges and increase efficiency, the report says. These tools allow for automated validation of data inputs, real-time visibility into potential errors and compliance monitoring. Natural language processing (NLP) is also increasingly essential, providing for conversational virtual assistants that can field employee queries around the clock.
At the same time, many small
“Small companies need modern payroll systems to remain competitive,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Outsourcing providers help them advance by integrating new features into existing software.”
The report also explores other payroll trends in the
For more insights into the payroll challenges facing
The 2023 ISG Provider Lens™ Payroll Solutions and Services report for the
The report names ADP, Paychex and Paycor as Leaders in both quadrants. It names isolved, Paycom and Paylocity as Leaders in one quadrant each.
The 2023 ISG Provider Lens™ Payroll Solutions and Services report for the
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
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
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Source: Information Services Group, Inc.