ISG to Evaluate Payroll Managed Services Providers

Upcoming ISG Provider Lens™ reports will assess how providers are adopting AI and enhancing EX for more efficient, secure and adaptable payroll processes

Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm, has launched a research study examining payroll service providers in the U.S. and around the world helping enterprises create more efficient, secure and adaptable payroll processes, often with the use of AI-powered automation.

The study results will be published in a pair of comprehensive ISG Provider Lens™ reports, called Payroll Managed Services, one covering the U.S. and the other covering multi-country global services. Scheduled to be released in September, the reports will cover service providers embracing AI-assisted automation to help enterprises improve compliance, reduce manual effort and enhance accuracy.

Enterprise buyers will be able to use information from the reports to evaluate their current vendor relationships, potential new engagements and available offerings, while ISG advisors use the information to recommend providers to the firm’s buy-side clients.

As hybrid work models become more commonplace and government regulations continue to grow more complex, more companies are seeking external payroll expertise to navigate cross-border legal intricacies. Payroll service providers help manage the risks of currency fluctuations, making payroll more predictable for globally distributed workforces.

“AI platforms are now enabling service providers to tailor payroll experiences to individual customers’ needs, preferences and roles,” said Namratha Dharshan, Chief Business Leader, ISG India Research. “The result is a more human-centric approach to payroll, enabling businesses to maintain competitive advantages and achieve operational excellence in payroll management.”

ISG has distributed surveys to more than 80 payroll managed services providers serving the global market. Working in collaboration with ISG’s global advisors, the research team will produce two quadrants representing the payroll managed services the typical enterprise is buying based on ISG’s experience working with its clients. The two quadrants are:

• Managed Payroll Services: U.S., evaluating service providers that handle payroll for companies operating in the U.S. as part of either a solely U.S.-focused strategy or a broader North American or multi-county approach. Services in this space typically include gross pay calculations with pay adjustments and time and attendance data; net pay calculations; federal, state and local tax withholding and reporting; compliance with federal and state regulations; payroll validation reports and other services.

• Multi-county Managed Payroll Services, assessing service providers offering managed payroll services in one or more regions outside the U.S. These providers utilize their own platforms and in-house resources, local providers or a combination of these resources to process payrolls.

Geographically focused reports from the study will cover the global managed payroll services market and examine products and services available in the U.S. ISG analyst Rachel Anderson will serve as lead author of both reports.

A list of identified providers and vendors and further details on the study are available in this digital brochure. Companies not listed as payroll managed service providers can contact ISG and ask to be included in the study.

All 2025 ISG Provider Lens™ evaluations feature expanded customer experience (CX) data that measures actual enterprise experience with specific provider services and solutions, based on ISG’s continuous CX research. Enterprise customers wishing to share their experience about a specific provider or vendor are invited to complete this online survey. Participants will receive a copy of this report in return for their feedback.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

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AI platforms are enabling providers to tailor payroll experiences to individual needs, preferences and roles. The result is a more human-centric approach to payroll, enabling businesses to maintain competitive advantage and achieve operational excellence.