Information Services Group, a leading global technology research and advisory firm, has announced a new research study examining payroll service providers in the U.S. and around the world. With a focus on AI-powered automation, this study aims to assess how providers are improving payroll accuracy, compliance, and efficiency for enterprises.
The findings will be published in two ISG Provider Lens™ reports, titled Payroll Managed Services, with one report focusing on the U.S. market and the other on multi-country global services. Both reports are scheduled for release in September 2025.
Goals of the Study
1. Focus on AI-Driven Payroll Automation
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Explores how providers are using AI to automate payroll processes.
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Targets solutions that reduce manual errors and improve regulatory compliance.
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Highlights the shift toward more human-centric, customized payroll systems.
2. Support for Enterprise Decision-Making
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Helps enterprise buyers evaluate existing vendors and explore new options.
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Provides ISG advisors with insights to recommend suitable providers to clients.
3. Response to Hybrid Work and Global Regulation
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Addresses the increasing demand for external payroll expertise due to:
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Complex cross-border legal requirements.
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Fluctuating currency and cost management for global teams.
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Growth of remote and hybrid workforces.
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Research Structure and Scope
4. Two Core Quadrants to Be Covered
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Managed Payroll Services: U.S.
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Focuses on providers serving U.S.-based enterprises.
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Includes services like gross-to-net pay calculation, tax compliance, reporting, and more.
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Multi-country Managed Payroll Services
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Evaluates providers offering payroll across regions outside the U.S.
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Reviews platform types, service combinations, and localization strategies.
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5. Expanded Customer Experience (CX) Data
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2025 evaluations will include detailed CX insights from enterprises.
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Data is collected through ISG’s ongoing customer experience research.
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Enterprise participants can share feedback through an online survey and receive a copy of the report.
Insights from ISG Leadership
“AI platforms are now enabling service providers to tailor payroll experiences to individual customers’ needs, preferences and roles,” said Namratha Dharshan, Chief Business Leader, ISG India Research. “The result is a more human-centric approach to payroll, enabling businesses to maintain competitive advantages and achieve operational excellence in payroll management.”
Participation and Next Steps
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Over 80 payroll service providers have been surveyed for inclusion in the reports.
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Enterprises and vendors not listed can contact ISG for potential inclusion.
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Reports will be authored by Rachel Anderson, lead analyst at ISG.
As payroll becomes increasingly global, automated, and compliance-driven, ISG’s upcoming research offers valuable insight for enterprises navigating the complexities of payroll services. These reports will not only inform vendor selection but also highlight how AI is transforming payroll from a routine task to a strategic business function.
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