ISG Launches Transformational HR Outsourcing Study with AI Focus

Information Services Group (ISG), a prominent global technology research and advisory firm, has initiated a comprehensive research study to evaluate HR Outsourcing (HRO) providers offering transformational services. The study aims to assess how these providers leverage advanced technologies, such as AI, to create business value for organizations and their workforces. The findings will be published in two ISG Provider Lens™ reports in March 2025, focusing on U.S. and global markets.

Key Highlights

1. Focus of the Study
   • Transformational HRO Services:
     Goes beyond traditional HR objectives like cost reduction and efficiency, incorporating AI-driven insights to improve decision-making and workforce engagement.
   • Targeted Research Areas:
     • Multiprocess HRO (MPHRO) Services
     • Health & Welfare (H&W) Benefits Administration
     • Recruitment Process Outsourcing (RPO)
2. Quadrant Coverage
   • Multiprocess HRO (MPHRO):
     Integrated services like payroll, recruitment, compensation, and performance management for organizational agility and cost savings.
   • Health and Welfare Benefits Administration:
     Providers managing benefit plans, streamlining administration, and enhancing the employee experience.
   • Recruitment Process Outsourcing (RPO):
     End-to-end recruitment solutions powered by AI and data analytics to optimize sourcing and improve hire quality.
3. Benefits for Enterprises
   • Evaluate existing vendor relationships and explore new service providers.
   • Gain insights into advanced, digitally enabled HR service delivery models.
   • Enhance workforce outcomes and meet strategic HR goals.
4. Survey and Methodology
   • ISG has distributed surveys to nearly 70 HRO providers.
   • Providers not currently listed can request inclusion in the study.
   • Enterprises can contribute their experiences via an online survey and receive a copy of the report.
5. Expert Commentary
   • Namratha Dharshan, Chief Business Leader, ISG Research:
     “Organizations are embracing digitally enabled, agile HR models to navigate workforce challenges and achieve business objectives.”
6. Expanded Customer Experience (CX) Data
   • Incorporates real enterprise feedback on provider services, offering a more accurate representation of client experiences.

ISG’s study highlights the critical role of transformational HRO services in driving innovation and agility in HR functions. By evaluating the capabilities of HRO providers, the reports will serve as a valuable resource for enterprises aiming to enhance their HR strategies and workforce engagement through advanced technologies like AI.