Enterprises in the U.S. are revolutionizing their human resources approach through partnerships with outsourcing providers investing in cutting-edge technologies, according to the latest research report by Information Services Group (ISG). The 2024 ISG Provider Lens™ Transformational HR Outsourcing Services (HRO) report details how technological advancements, client demands, and the complexities of U.S. employment, particularly in healthcare and compliance, are reshaping multiprocess HRO.
Technological Advances Driving HR Transformation
- Generative AI (GenAI): Emerging as a key tool, GenAI is empowering enterprises to innovate and streamline HR processes. These technologies offer HR and business leaders enhanced information and personalized experiences for employees.
- Automation: Multiprocess HRO solutions now focus on automation that complements human expertise, shifting from cost savings through offshoring to strategic value.
Evolving HR Roles and Strategic Focus
- Strategic HR Function: The HR role is expanding beyond back-office transactions to strategic positioning for better business outcomes. HR staff are increasingly assigned to specialized and strategic roles rather than routine tasks.
- Client Demands: Enterprises seek HRO providers to help navigate rising costs and new employee expectations, leveraging technology-enabled solutions for adaptability and growth.
- HR Automation: AI-enabled services are gaining traction, especially for generating job descriptions, onboarding packages, and managing recruitment, employee learning, and contact centers.
- Outcome Pricing: The introduction of outcome-based pricing for services and the integration of better health insurance carriers are notable trends.
- Leaders in HRO Services: Alight is named a Leader in both Multiprocess HR Outsourcing (MPHRO) Services and Health and Welfare (H&W) Benefits Administration Services quadrants. Accenture, bswift, Businessolver, IBM, TCS, TELUS Health, and WTW are also recognized as Leaders in individual quadrants.
- Rising Stars: Aptia and Infosys are identified as Rising Stars, showcasing promising portfolios and high future potential.
The 2024 ISG Provider Lens report underscores the transformative impact of advanced technologies and strategic outsourcing on HR functions. U.S. enterprises are leveraging these innovations to enhance operational performance and achieve better business outcomes, marking a significant evolution in HR practices.
