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U.S. Firms Transform HR with Modernized Outsourcing

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The 2024 ISG Provider Lens™ Transformational HR Outsourcing Services (HRO) report for the U.S. reveals that enterprises are reinventing their HR approach with outsourcing providers investing in new technologies. Companies are reimagining multiprocess HRO due to technological advances, client demands, and growing employment complexities. Generative AI is gaining momentum, with providers demonstrating its potential to reduce HR management costs and complexity.

The report highlights the evolution of HR from back-office support to a strategic role in improving business outcomes. HRO providers are offering solutions based on automation and next-generation technologies, enabling personalized employee experiences and better decision-making for leaders. The report also notes trends such as outcome pricing for services and the importance of improved health insurance carrier integration.

Il rapporto 2024 ISG Provider Lens™ sui servizi di outsourcing per le risorse umane (HRO) negli Stati Uniti rivela che le imprese stanno reinventando il loro approccio alle risorse umane con i fornitori di outsourcing che investono in nuove tecnologie. Le aziende stanno ripensando l'HRO multi-processo a causa dei progressi tecnologici, delle richieste dei clienti e della crescente complessità dell'occupazione. L'IA generativa sta guadagnando slancio, con i fornitori che dimostrano il suo potenziale per ridurre i costi e la complessità nella gestione delle risorse umane.

Il rapporto evidenzia l'evoluzione delle risorse umane da supporto back-office a un ruolo strategico nel miglioramento dei risultati aziendali. I fornitori di HRO stanno offrendo soluzioni basate su automazione e tecnologie di nuova generazione, consentendo esperienze personalizzate per i dipendenti e migliorando il processo decisionale per i leader. Inoltre, il rapporto nota tendenze come prezzi basati sui risultati per i servizi e l'importanza di una migliore integrazione delle compagnie di assicurazione sanitaria.

El informe ISG Provider Lens™ 2024 sobre Servicios de Outsourcing de Recursos Humanos (HRO) para EE. UU. revela que las empresas están reinventando su enfoque de RRHH con proveedores de outsourcing que invierten en nuevas tecnologías. Las empresas están reimaginando el HRO multiproceso debido a los avances tecnológicos, las demandas de los clientes y las crecientes complejidades del empleo. La IA generativa está ganando impulso, con proveedores que demuestran su potencial para reducir costos y complejidad en la gestión de RRHH.

El informe resalta la evolución de RRHH de soporte administrativo a un rol estratégico en la mejora de los resultados comerciales. Los proveedores de HRO están ofreciendo soluciones basadas en automatización y tecnologías de nueva generación, lo que permite experiencias personalizadas para los empleados y una mejor toma de decisiones para los líderes. El informe también señala tendencias como precios basados en resultados para los servicios y la importancia de una mejor integración con las aseguradoras de salud.

2024 ISG Provider Lens™ 미국의 인적 자원 아웃소싱 서비스(HRO) 보고서는 기업들이 신기술에 투자하는 아웃소싱 제공업체와 함께 인사 접근 방식을 재구성하고 있음을 나타냅니다. 기업들은 기술 발전, 고객 요구 및 증가하는 고용 복잡성으로 인해 다중 프로세스 HRO를 재구상하고 있습니다. 생성적 AI는 HR 관리 비용과 복잡성을 줄일 수 있는 잠재력을 보여주는 공급업체와 함께 점점 더 주목받고 있습니다.

이 보고서는 HR이 백오피스 지원에서 비즈니스 결과 개선에 있어 전략적 역할로 진화하고 있음을 강조합니다. HRO 제공업체는 자동화 및 차세대 기술을 기반으로 한 솔루션을 제공하여 직원 개인화 경험과 리더의 더 나은 의사결정을 가능하게 하고 있습니다. 보고서는 또한 성과 기반 가격 책정과 건강 보험사를 개선하는 통합의 중요성 같은 트렌드를 지적합니다.

Le rapport ISG Provider Lens™ 2024 sur les services d'externalisation des ressources humaines (HRO) aux États-Unis révèle que les entreprises réinventent leur approche RH avec des fournisseurs d'externalisation investissant dans de nouvelles technologies. Les entreprises réimaginent l'HRO multiprocessus en raison des avancées technologiques, des demandes des clients et de la complexité croissante de l'emploi. L'IA générative prend de l'ampleur, les fournisseurs montrant son potentiel pour réduire les coûts et la complexité de la gestion RH.

Le rapport souligne l'évolution des RH, passant du support back-office à un rôle stratégique dans l'amélioration des résultats commerciaux. Les fournisseurs de HRO offrent des solutions basées sur l'automatisation et des technologies de nouvelle génération, permettant des expériences personnalisées pour les employés et une meilleure prise de décision pour les dirigeants. Le rapport note également des tendances telles que la tarification basée sur les résultats pour les services et l'importance d'une meilleure intégration avec les compagnies d'assurance santé.

Der ISG Provider Lens™ Bericht 2024 zu Transformationalen HR-Outsourcing-Diensten (HRO) für die USA zeigt, dass Unternehmen ihren HR-Ansatz mit Outsourcing-Anbietern neu erfinden, die in neue Technologien investieren. Aufgrund technologischer Fortschritte, Kundenanforderungen und wachsender Beschäftigungskomplexität denken Firmen das multiprozessuale HRO neu. Generative KI gewinnt an Bedeutung, wobei Anbieter das Potenzial demonstrieren, die Kosten und Komplexität des HR-Managements zu senken.

Der Bericht hebt die Evolution des HR-Bereichs von einer Backoffice-Unterstützung zu einer strategischen Rolle zur Verbesserung der Geschäftsergebnisse hervor. HRO-Anbieter bieten Lösungen an, die auf Automatisierung und Next-Generation-Technologien basieren, um personalisierte Mitarbeitererfahrungen und bessere Entscheidungen für Führungskräfte zu ermöglichen. Der Bericht vermerkt auch Trends wie Ergebnispreisgestaltung für Dienstleistungen und die Bedeutung einer verbesserten Integration von Krankenkassen.

Positive
  • HRO providers are investing in new technologies, including generative AI, to improve HR services
  • HR function is expanding to a more strategic role in improving business outcomes
  • Next-generation technologies are enabling personalized employee experiences and better decision-making
  • AI-enabled services are reducing the cost and complexity of HR management
Negative
  • None.

Services help companies meet strategic goals by improving decision-making, employee experiences and business outcomes, ISG Provider Lens™ 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: 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.

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

Source: Information Services Group, Inc.

FAQ

How are U.S. firms transforming HR according to the ISG Provider Lens™ report?

U.S. firms are transforming HR by adopting modernized outsourcing services that leverage new technologies, including generative AI, to improve decision-making, enhance employee experiences, and drive better business outcomes.

What role does generative AI play in HR transformation according to the ISG report?

Generative AI is gaining momentum in HR transformation, with service providers demonstrating its potential to reduce the cost and complexity of HR management, especially in areas like recruiting, employee learning, and contact centers.

Who are the Leaders in the Multiprocess HR Outsourcing (MPHRO) Services quadrant for the U.S. market?

According to the ISG Provider Lens™ report, Alight is named as a Leader in the Multiprocess HR Outsourcing (MPHRO) Services quadrant for the U.S. market.

What are the key trends in HR outsourcing identified in the ISG Provider Lens™ report for the U.S.?

Key trends identified include the introduction of outcome pricing for services, the increasing importance of better health insurance carrier integration, and the adoption of next-generation technologies for personalized employee experiences and improved decision-making.

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