A growing number of enterprises in the U.S. are working closely with service providers to get more out of the Workday cloud-based human capital management (HCM) platform, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2024 ISG Provider Lens™ Workday Ecosystem report for the U.S. finds that cloud-based HR and financial management solutions like Workday are enabling digital transformations that make enterprises’ technology foundations more flexible, scalable and cost-efficient. Recent enhancements to Workday, including AI-enabled advanced analytics, machine learning and stronger security, are critical to these transformations.
“Workday helps U.S. enterprises navigate an increasingly complex business environment,” said Stacey Cadigan, partner, ISG Human Capital Management and Enterprise Transformation. “Its ecosystem partners deliver the support they need to implement and optimize Workday solutions.”
A sharp focus on employee experience (EX) is one trend driving U.S. adoption of Workday, the report says. Many companies see Workday’s user interface and mobile capabilities, including personalized dashboards and options for self-service HR functions, as tools to boost engagement and worker satisfaction. Improved EX, in turn, can help employers increase productivity and better retain talent.
A growing number of companies, especially in the U.S., seek interoperability between Workday and third-party platforms for core functions such as decision-making, financial management and forecasting, ISG says. Interoperability lets employees access multiple applications without leaving Workday, streamlining many tasks.
U.S. firms are also taking advantage of Workday Extend, a component that lets enterprises build custom applications to fill unique operational needs, the report says. Developed in conjunction with system integrators and consulting firms, these applications smoothly integrate with Workday and extend its functionality.
Enterprises in the U.S. are also at the forefront of the global trend toward intelligent automation, usually enabled by AI, ISG says. With the help of Workday ecosystem partners, they are carefully automating some HR functions to reduce human effort, reduce costs and improve accuracy. Companies and providers are also beginning to build tools with generative AI (GenAI), while providers are determining how best to integrate the technology with their solutions and address security concerns.
“There is a strong, consistent trend in the U.S. of embracing more automation,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “In an innovation-friendly culture and regulatory environment, it continues to gain momentum.”
The report also explores other trends affecting the Workday ecosystem in the U.S., including increased mergers, acquisitions and partnerships among providers and strong demand for data migration tools and frameworks.
For more insights into Workday-related challenges faced by U.S. enterprises, including change management during HR transformations and the difficulty of customizing some Workday workflows, along with ISG’s advice for addressing these issues, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ Workday Ecosystem report for the U.S. evaluates the capabilities of 28 providers across three quadrants: Transformation Services, Deployment and Integration Services and Performance and Optimization Services.
The report names Accenture, Cognizant, Deloitte, Huron, Invisors, PwC, Strada (formerly Alight) and TopBloc as Leaders in all three quadrants. It names Hexaware and KPMG as Leaders in two quadrants each and IBM, Kainos and Mercer as Leaders in one quadrant each.
In addition, CrossVue and Skillcentrix are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
In the area of customer experience, Invisors is named the global ISG CX Star Performer for 2024 among Workday Ecosystem providers. Invisors earned the highest customer satisfaction scores in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
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