Key Findings & Highlights:

The broad HR environment is experiencing increased legislation with greater focus on AI governance, pay equity and pay transparency. The Multi-Process HR Transformation services market is experiencing the following key changes:

• Buyer demand driven by the need to digitalize processes, driving operational efficiencies whilst bringing the best experiences leveraging advances in technology offerings
• New offerings include support for higher impact HR best practices, in particular developing GenAI capabilities with a library of use cases and embedding GenAI into existing virtual agents. Investments were also made to develop AI governance models and growing consulting capability to support improved measurements with the aim of increasing the ROI
• Increasing capability to support transitioning on-premise to cloud migration strategies for SAP customers is a focus for vendors. Ongoing appetite to increase SAP consulting capability continues through acquisitions
• Market consolidation and geographical expansion continued, albeit slightly slower than in 2022, with ongoing efforts to address white spaces of offerings to recently added countries, so that standardized services are offered to all countries served
• Vendor proprietary HR platforms and apps and marketplaces continue to be enhanced
• Refined deployment and employee experience frameworks offering holistic HR transformations.

Whilst the start of 2024 saw some softening in the labor market in some sectors, the ongoing workforce shortages due to baby boomers retiring is a trend that started many years ago and over the medium to long term is not likely to be abating.  As a result, the Multi-Process HR Transformation services market will focus on enhancing employee experience and engagement, as well as looking for efficiencies with greater digitalization, automation, and AI, specifically with GenAI capability.