HRO Today December 2019 - 21

2020 Forecast
become a critical priority and many buyers are seeking to
future-proof payroll operations by consolidating payroll
to a single platform, user experience, and delivery model
globally.
Multi-country payroll services are rapidly increasing in
demand and continue to grow at more than twice the
overall market rate, as businesses of all sizes are expanding
operations to new international locations and increasingly
require payroll solutions that can support growth and
scale in emerging geographies. Growth is being driven by
the demand for consolidation of payroll suppliers, greater
visibility of the global workforce and associated analytics,
increased control over risk and compliance matters, and a
demand for a more modern, future-proof cloud platform
that can seamlessly integrate with the HCM landscape.
2020 HR OUTLOOK:
PAYROLL SERVICES
* Adoption by small market and large market
buyers will steadily increase as solutions are
scaled to accommodate the unique needs of these
market segments.
* Multi-country payroll will grow at nearly 5
times the rate of single country services, owning
a 24 percent share of the overall market by 2023.
This growth will be driven by the demand for
modernized, globally consolidated, compliant, and
consistent payroll.
* Platform integrations and the range of
applications offered by partners will become a key
element in payroll solution differentiation, with
partners leveraging platform app marketplaces
to reach and target buyers outside of traditional
methods.
* Digital transformation enablers like robotic
process automation (RPA), AI, ML, predictive and
prescriptive analytics, and deep mobile capabilities
will be standard offerings and key differentiators
for payroll solutions, with HR service partners
seeking to commoditize capabilities around these seeking to commoditize capabilities around these
investments longer term.
* Buyers of payroll services will increasingly adopt
onshore payroll delivery models over offshoring,
oll expertise and capability
seeking in-country payroll expertise and capability
that can enable a best-in-class employee and user
that can enable a best-in-class employee and user
experience.
Benefi ts Administration Services
Companies are seeking best-in-breed benefi ts suppliers,
often for a single benefi t administration service line.
Retirement plan contracts continue to dominate most
contract announcements; however, health and welfare
remains the largest revenue percentage of benefi ts
administration (59 percent in North America).
Top drivers of benefi ts administration outsourcing include
modernizing technology platforms and improving the
participant experience. Most technology developments
around the participant experience are centered on helping
employees become more effective consumers, with
the emergence of personalization based on life events.
Partners are also beginning to integrate health, wealth,
and welfare within a single consumer interface.
RPA, AI, and ML technologies are also emerging, with
2020 HR OUTLOOK:
BENEFITS ADMINISTRATION
SERVICES
* Benefi ts administration will experience close to a 4
percent annual growth through 2023.
* Participant satisfaction and the ability to optimize
spend for both plan sponsors and participants will
be increasingly important. Analytics to recommend
treatments and healthcare providers will be
commonplace and based on effectiveness as well as
cost.
* Participant tools for decision-making will be
replaced by proactive recommendation engines,
driven by AI and ML technology, that evaluate
internal participants as well as market data. Benefi t
optimization will become the new standard as
platforms evolve to provide recommendations based
on each individual's needs. While chatbots will be
more common, counselors will remain important.
* Organizations will adopt a more holistic view of
benefi ts administration, turning toward a broader
" health and wealth " approach and using HR service
partners for a range of health, wealth, and welfare
products.
* Organizations will increasingly go beyond RPA and
apply AI, ML, and advanced analytics to improve
data quality and compliance in the back-offi ce.
DECEMBER 2019
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HRO Today December 2019

Table of Contents for the Digital Edition of HRO Today December 2019