Summary
According to recent reports by Information Services Group (ISG), companies are increasingly partnering with HR outsourcing (HRO) service providers to leverage AI and analytics to enhance employee experience and workforce performance. The 2025 ISG Provider Lens™ reports highlight the shift of HR from a traditional support role to a strategic asset, driven largely by technological advancements.
The reports indicate that US enterprises are leading this transformation, utilising AI for automating HR functions, improving decision-making with real-time data, and personalising employee experiences. The adoption of multiprocess HR outsourcing (MPHRO) services is on the rise, allowing for integrated and efficient HR operations across various functions.
Overall, the reports point to a significant evolution in HR services, with a focus on enhancing operational efficiency and adopting cutting-edge technologies.
Key Points
- Companies are utilising HRO providers to implement AI and analytics for improved employee experiences.
- ISG reports highlight a shift of HR from a support role to a strategic differentiator in organisations.
- US enterprises are adopting automated and data-driven HR processes more rapidly.
- Generative AI is being used for tasks like drafting job descriptions and analysing applicants.
- MPHRO services are facilitating the integration of various HR functions, enhancing operational effectiveness.
- Trend towards employee-centred health and welfare benefits administration is on the rise.
Why should I read this?
If you’re interested in understanding how tech is reshaping HR, this article’s a must-read! It breaks down how AI and outsourcing can transform traditional HR functions into powerful strategic tools. Plus, knowing the latest trends can give you a competitive edge whether you’re in HR or any related field!
