Payroll Takes on Expanded Role With New Technologies
The 2024 ISG Provider Lens™ global Payroll Solutions and Services report reveals that enterprises are reshaping their payroll service models with new capabilities and cost efficiencies from outsourcing providers. Key findings include:
1. AI and ML are central to advances in payroll technology, introducing greater accuracy, efficiency, and intelligence.
2. Companies are increasingly outsourcing for regulatory and compliance expertise due to proliferating payroll laws.
3. Self-service platforms are giving employees easy access to payroll information, especially through mobile apps.
4. Predictive analysis is being used to forecast workforce trends and optimize performance.
The report evaluates 26 providers, naming ADP, EY, IBM, Mercans, Neeyamo, Ramco Systems, SD Worx, and Strada as Leaders in the Multicountry Managed Payroll Services quadrant.
Il rapporto globale delle Soluzioni e Servizi Payroll ISG Provider Lens™ del 2024 rivela che le imprese stanno rimodellando i loro modelli di servizi di payroll grazie a nuove capacità e a maggiore efficienza dei costi forniti dai provider esterni. Tra i risultati principali troviamo:
1. L'IA e il ML sono centrali per i progressi nella tecnologia payroll, introducendo maggiore accuratezza, efficienza e intelligenza.
2. Le aziende stanno sempre più esternalizzando per esperti in materia di regolamentazione e conformità a causa dell'aumento delle leggi sul payroll.
3. Le piattaforme self-service offrono ai dipendenti un facile accesso alle informazioni sul payroll, in particolare attraverso app mobili.
4. L'analisi predittiva viene utilizzata per prevedere le tendenze della forza lavoro e ottimizzare le prestazioni.
Il rapporto valuta 26 fornitori, nominando ADP, EY, IBM, Mercans, Neeyamo, Ramco Systems, SD Worx e Strada come Leader nel quadrante dei Servizi Payroll Gestiti Multinazionali.
El informe global de Soluciones y Servicios de Nómina de ISG Provider Lens™ 2024 revela que las empresas están remodelando sus modelos de servicio de nómina con nuevas capacidades y eficiencias de costos de los proveedores de subcontratación. Los hallazgos clave incluyen:
1. La IA y el ML son centrales para los avances en tecnología de nómina, introduciendo mayor precisión, eficiencia e inteligencia.
2. Las empresas están cada vez más subcontratando para obtener experiencia en regulación y cumplimiento debido a la proliferación de leyes de nómina.
3. Las plataformas de autoservicio brindan a los empleados fácil acceso a la información de nómina, especialmente a través de aplicaciones móviles.
4. El análisis predictivo se está utilizando para pronosticar tendencias de la fuerza laboral y optimizar el rendimiento.
El informe evalúa a 26 proveedores, nombrando a ADP, EY, IBM, Mercans, Neeyamo, Ramco Systems, SD Worx y Strada como Líderes en el cuadrante de Servicios de Nómina Gestionados Multinacionales.
2024 ISG Provider Lens™ 글로벌 급여 솔루션 및 서비스 보고서에 따르면 기업들이 새로운 기능과 아웃소싱 제공업체로부터의 비용 효율성을 활용하여 급여 서비스 모델을 재편하고 있습니다. 주요 결과는 다음과 같습니다:
1. AI와 ML이 급여 기술의 발전에 중심적입니다, 더 큰 정확성, 효율성 및 지능을 도입하고 있습니다.
2. 기업들은 급여 법규의 증가로 인해 규제 및 준수 전문성을 위해 아웃소싱을 점점 더 많이 하고 있습니다.
3. 자가 서비스 플랫폼이 직원들에게 급여 정보에 쉽게 접근할 수 있도록 해주며, 특히 모바일 앱을 통해 제공합니다.
4. 예측 분석이 인력 동향을 예측하고 성과를 최적화하는 데 사용되고 있습니다.
이 보고서는 26개의 공급업체를 평가하며, ADP, EY, IBM, Mercans, Neeyamo, Ramco Systems, SD Worx 및 Strada를 다국적 관리 급여 서비스 부문에서 리더로 지목합니다.
Le rapport mondial sur les solutions et services de paie ISG Provider Lens™ 2024 révèle que les entreprises remodelent leurs modèles de services de paie grâce à de nouvelles capacités et à des économies de coûts fournies par des prestataires de sous-traitance. Les principales conclusions incluent :
1. L'IA et le ML sont essentiels aux avancées dans la technologie de la paie, introduisant une plus grande précision, efficacité et intelligence.
2. Les entreprises externalisent de plus en plus pour obtenir une expertise en réglementation et conformité en raison de la prolifération des lois sur la paie.
3. Les plateformes en libre-service donnent aux employés un accès facile aux informations de paie, notamment via des applications mobiles.
4. L'analyse prédictive est utilisée pour prévoir les tendances de la main-d'œuvre et optimiser les performances.
Le rapport évalue 26 fournisseurs, désignant ADP, EY, IBM, Mercans, Neeyamo, Ramco Systems, SD Worx et Strada comme leaders dans le quadrant des services de paie gérés multinationaux.
Der globale Bericht über Payroll-Lösungen und -Dienste von ISG Provider Lens™ 2024 zeigt, dass Unternehmen ihre Payroll-Service-Modelle neu gestalten und neue Fähigkeiten sowie Kosteneffizienzen von Outsourcing-Anbietern nutzen. Die wichtigsten Erkenntnisse sind:
1. KI und ML sind zentral für Fortschritte in der Payroll-Technologie und führen zu größerer Genauigkeit, Effizienz und Intelligenz.
2. Unternehmen lagern zunehmend Expertise für Regulierung und Compliance aus, aufgrund der wachsenden Anzahl an Payroll-Gesetzen.
3. Selbstbedienungsplattformen geben Mitarbeitern einfachen Zugang zu Payroll-Informationen, insbesondere über mobile Apps.
4. Prädiktive Analysen werden genutzt, um Trends in der Belegschaft vorherzusagen und die Leistung zu optimieren.
Der Bericht bewertet 26 Anbieter und benennt ADP, EY, IBM, Mercans, Neeyamo, Ramco Systems, SD Worx und Strada als Führer im Quadranten der Multinationalen Managed Payroll Services.
- AI and ML innovations are improving accuracy, efficiency, and intelligence in payroll processes
- Outsourcing providers offer regulatory and compliance expertise to help companies navigate complex payroll laws
- Self-service platforms and mobile apps are enhancing employee access to payroll information
- Predictive analysis is being used to forecast workforce trends and optimize performance
- The report names 8 Leaders in the Multicountry Managed Payroll Services quadrant
- None.
Insights
The expansion of payroll services into strategic insights and expertise represents a significant shift in the industry. This trend could lead to increased revenue streams for payroll service providers, potentially boosting their profitability and market value. However, the investment required for AI and ML integration may impact short-term margins.
The growing complexity of payroll regulations and the need for compliance expertise present both an opportunity and a challenge. While it may drive demand for outsourced services, providers must continually invest in staying current with regulatory changes across multiple jurisdictions. This could create barriers to entry for smaller players and consolidate market share among larger, more resourceful companies.
Investors should monitor how effectively companies in this space monetize new AI-driven services and balance the costs of innovation with revenue growth. The shift towards predictive analytics and strategic workforce planning tools could be a key differentiator and value driver for leading providers in the coming years.
The integration of AI and ML in payroll systems marks a significant technological leap. These advancements offer real-time data verification, anomaly detection and personalized financial insights, which could dramatically reduce errors and improve efficiency. This shift towards intelligent systems could lead to substantial cost savings for enterprises and create a competitive edge for providers who successfully implement these technologies.
The development of self-service platforms and mobile apps aligns with broader trends in digital transformation. These user-friendly interfaces can enhance employee satisfaction and reduce the workload on HR departments. However, the success of these platforms will depend on their security features and ability to integrate seamlessly with existing enterprise systems.
The slow adoption of on-demand pay features in some regions suggests there's still room for innovation and market education in this area. Providers who can overcome regulatory hurdles and cultural barriers to implement these features may find a significant first-mover advantage in untapped markets.
The proliferation of payroll laws and the increasing complexity of compliance requirements present both opportunities and risks for the payroll services industry. The trend towards outsourcing compliance expertise indicates a growing market for specialized legal knowledge in this field. Providers that can offer robust, AI-driven compliance solutions may see increased demand for their services.
However, the use of AI for automatic system updates and compliance management raises important legal considerations. Providers must ensure their AI systems are consistently accurate and up-to-date, as errors could lead to significant legal and financial consequences for their clients. The integration with government databases for automatic adjustments is promising but requires careful implementation to maintain data privacy and security.
The development of comprehensive audit trails and custom reporting tools is important for demonstrating compliance. This focus on transparency and accountability aligns well with increasing regulatory scrutiny in many jurisdictions. Providers who can offer these features effectively may gain a competitive advantage in the market.
Providers are delivering AI innovations for strategic insights, higher efficiency, self-service employee experiences, ISG Provider Lens™ report says
The 2024 ISG Provider Lens™ global Payroll Solutions and Services report finds that payroll departments are strengthening their technology stacks to perform expanded roles. Many enterprises now expect payroll to provide strategic insights and expertise for more complex, dynamic workplaces.
“The payroll market is rapidly changing,” said Stacey Cadigan, partner, ISG Human Capital Management and Enterprise Transformation. “Providers and enterprises are embracing innovation and automation to meet evolving needs.”
AI and ML are central to many advances in payroll technology, introducing greater accuracy, efficiency and intelligence, the report says. The breakthroughs include the ability to verify payroll data as soon as it is entered, learn from historical data to flag anomalies and deliver personalized financial insights and recommendations to employees. Enterprises want to deploy AI in all business processes, including those that customers experience. Lacking enough in-house resources, they often rely on service providers.
Payroll laws are proliferating, so more companies are outsourcing for regulatory and compliance expertise, ISG says. Providers are using AI and ML to automatically update systems with the latest rules and introduce chatbots that use natural-language processing to guide enterprise users. By integrating their systems with government databases, providers can automatically adjust payroll calculations and deductions, thereby minimizing compliance risks. Comprehensive audit trails and custom reporting tools help clients demonstrate compliance.
Self-service platforms are giving employees easy access to their payroll information, especially through mobile apps, the report says. These platforms satisfy employees by letting them manage certain aspects themselves, such as checking their pay slips before payroll is closed, while AI-powered chatbots have begun to handle routine inquiries automatically.
More enterprises are using predictive analysis of historical and macroeconomic data to forecast trends such as the size, makeup and cost of their workforces, ISG says. Providers also offer internal analytics tools to improve metrics such as payroll cycle times and error rates.
“Data has the power to transform payroll,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Analytics already is optimizing performance and may soon create strategies to minimize risk and capture opportunities.”
The report also explores other global payroll technology trends, including slow uptake of on-demand pay features in many regions and the rise of enhanced compliance services for small enterprises.
For more insights into common global payroll challenges, such as balancing global standardization with local requirements and complying with regulations in the age of remote work across borders, plus ISG’s advice for addressing these issues, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ global Payroll Solutions and Services report evaluates the capabilities of 26 providers in one quadrant: Multicountry Managed Payroll Services.
The report names ADP, EY, IBM, Mercans, Neeyamo, Ramco Systems, SD Worx and Strada (formerly Alight) as Leaders in the quadrant.
In addition, UKG is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in the quadrant.
In the area of customer experience, EY is named the global ISG CX Star Performer for 2024 among payroll solutions and services providers. EY earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
A customized version of the report is available from Mercans.
The 2024 ISG Provider Lens™ global Payroll Solutions and Services report 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
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
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Press:
Will Thoretz, ISG
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will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG
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Source: Information Services Group, Inc.
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