Key Ingredients for a Digital-First HR Transformation

26 Oct 2018
by Arkadev Basak, Priyanka Mitra, Sharath Hari N

The HR function is facing a wave of transformation. A new generation with strikingly new preferences is making its presence felt and digital technologies are driving disruption & changing the way organizations engage with their talent. These powerful trends are intensifying the imperative for organizations to quickly move away from the traditional ways of managing workforce to a flexible, fluid, and integrated HR operating model. This means focusing on providing seamless and integrated employee experience as opposed to the siloed view of HR processes.

Technologies such as cloud-based platforms, analytics, and automation, which foster flexibility and efficiency, while enhancing employee experience, are gaining rapid prominence. With technology changing so rapidly, organizations need to make sure that they fully embrace the digital transformation and buckle up to face the changes of the future. Many organizations are already working in this direction to make HR ready for the future.

This report aims to provide an insight into the next-generation paradigm of HR services and how it differs from the traditional paradigm. It also highlights how the preferences of enterprises have been evolving over time, driving changes in how the HR functions are being delivered.

This report also analyzes the key transformation levers that will have the maximum impact on HR services. These are:

  • Automation and other digital levers
  • Analytics
  • Cloud / Business Process-as-a-Service (BPaaS)
  • Advisory services
  • Employee experience

It also highlights the advantages of the levers and their current adoption in HRO deals. The report mentions some HR-specific use-cases where the transformation levers can be effectively leveraged.


This report provides a comprehensive analysis of the key transformation levers for a successful digital-first HR transformation. Some of the key findings of the report are:

  • While each individual technology lever is powerful, the maximum transformative impact is realized when all the levers are applied in cohesion
  • Enterprises must place “digital employee experience” at the center/focal point of their HR functions. All the other transformation levers will typically revolve around this
  • While still in its infancy, RPA has generated immense interest among enterprises due to its numerous advantages
  • Analytics, especially advanced analytics, has tremendous business impact and rapid growth in adoption is expected in the future
  • Enterprises are demanding service providers who have the capabilities across the consult-to-operate spectrum along with diverse experience in various third-party BPaaS solutions such as Workday, SuccessFactors, and Oracle HCM cloud
  • There is a rise in demand for HR transformation consulting as well as technology consulting as enterprises move towards a new age of HR
  • Due to the increasing focus on employee experience, digital employee helpdesk, self-service tools, integrable solutions are becoming an important part of the outsourcing deal discussions


Human Resources Outsourcing (HRO)


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