4 Ways the HR Outsourcing Market Is Evolving
Many HR organizations have been tasked with three simultaneous goals: optimizing costs, transforming the manager and employee experience and moving the HR technology model forward.
Advisory
HR Technology & Outsourcing Solutions
Expert advisory services and insights on HR transformation, HR technology, HR outsourcing and more.
What Is Transformational HR?
It’s HR that engages the workforce of tomorrow, drives operational efficiency and delivers value to the business in a new way.
Transforming HR means reorienting the role HR plays in the organization. Rethink your operating model and boost its capabilities by leveraging the right technology, the right delivery model and an effective sourcing ecosystem.
HR Transformation
Reimagine the Employee Experience
The
workplace of the future requires the workforce of future. How do you attract and retain top talent?
You need a workforce strategy that not only aligns HR with business goals but also leverages HR as an enterprise leader. Optimize processes, roles, and shared services so you can help the business define success – and lead the charge.
HR Technology
Revolutionize HR with Technology
Is your HR technology holding you back? Manual processes and inflexible systems are frustrating and inefficient.
You need to balance technical architecture, data security and the use of emerging technologies like machine learning and chatbots with a deep understanding of HR functionality, processes and user expectations.
HR Outsourcing
Optimize Sourcing to Save
Wondering if there’s a better way to “get it all done?” HR has a broad set of outsourcing markets—from HR contact centers and payroll administration to recruitment and learning, there are outsourcing partners to support your team.
ISG’s HR Technology & Transformation experts are the market leaders in helping enterprises transform their HR organizations through strategic use of outsourcing. We bring the domain experience, sourcing know-how, best-in-class methodologies
and world-class market data you need to assess, source, benchmark and manage your HR delivery partner relationships.
In a highly competitive and technologically maturing HCM marketplace, ISG's Stacey Cadigan, Partner at ISG, and Greg Vickrey, Director at ISG, sit down to share their thoughts on HCM differentiators that truly matter, the investments being made by leading software providers in their product and how an enterprise organization can evaluate a long-term strategic partner.
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Research
HRO is evolving into a digital AI-led experience-driven strategic enabler
Enterprises are transforming their HR operating models to align with evolving talent strategies, EX goals and digital maturity aspirations. With mounting pressure to deliver hyperpersonalized employee journeys, ensure global compliance and drive cost efficiencies, organizations are increasingly turning to multiprocess human resources outsourcing (MPHRO) providers for scalable, agile solutions. Today’s MPHRO engagements extend beyond mere transactional efficiency; they have evolved into strategic partnerships that help enterprises build future-ready workforces. From recruitment and onboarding to learning, payroll and employee engagement, MPHRO providers are central to modernizing HR delivery models.
Research
A report comparing providers’ capabilities to help decision-makers more effectively source services
Global market dynamics are currently characterized by uncertainty and turbulence, driving organizations to increase their focus on cloud-related investments aimed at improving business visibility, predictability and resilience. Tech spending for 2025, especially related to the Microsoft AI and Cloud ecosystem, is mainly driven by investments in cybersecurity, cloud-enabled (and AI-fueled) innovation, data and analytics, digital transformation and infrastructure modernization, particularly hardware/device refresh initiatives as Windows 10 approaches the end of life.
Research
The digital engineering services (DES) market in the U.S. experienced significant advancements in 2024
Particularly with the integration of generative and agentic artificial intelligence (AI) technologies. Generative AI usecases have quickly proliferated across all aspects and phases of engineering- spanning from R&D, design, build, test, run/ operations, to aftermarkets, field services, and ultimately in the digital business platformization services. These innovations have transformed various sectors, including chip design, precision manufacturing, life sciences, and service platforms in banking, financial services, insurance, and retail. Hyperscalers—large-scale cloud service providers—have played a pivotal role in this transformation by offering advanced AI services tailored to engineering design applications.
Research
GCCs are transforming from support centers to strategic hubs and driving innovation
The global capability center (GCC) market is undergoing a rapid transformation, evolving from traditional cost-saving hubs to strategic enablers of enterprisewide digitalization. Organizations are increasingly looking beyond labor arbitrage and are instead positioning their GCCs as CoEs that drive innovation, enhance CX and optimize business operations.
Research
The U.S. chemicals industry is driven by AI, but faces challenges related to cost and talent acquisition
The chemicals industry drives the U.S. economy by generating high-paying jobs, fueling R&D investments and supplying essential chemicals for daily life. Trade is crucial to the industry’s competitiveness. As the second - largest manufacturing export sector in the U.S., the chemicals industry recorded a trade surplus exceeding $30 billion in 2023, with exports supporting nearly 200,000 jobs.
