A global tire manufacturer’s HR and payroll technology for 24,000 employees was beyond the end of its useful life and was being maintained solely as part of an expiring HR outsourcing (HRO) contract. Learn how ISG helped the manufacturer evaluate, select and contract for new core HCM technology as part of its next-generation HRO solution.
Opportunity
The HR and Payroll technology for 24,000 employees in North America was beyond the end of its useful life and was being maintained as part of an expiring HRO contract.
ISG was engaged to conduct a renewal strategy to evaluate the alternatives to source HR, Payroll and Benefits separately or bundled with SaaS HCM incorporated into each HR provider’s bid. IT had recently deployed SuccessFactors globally to 42,000 employees and would remain out-of-scope except for integrations. Originally, the company executives ruled out a change from legacy Tesseract to brand new cloud HCM, but ISG brought market knowledge to help recognize product maturity made this the best use of investment resources.
ISG was engaged to conduct a renewal strategy to evaluate the alternatives to source HR, Payroll and Benefits separately or bundled with SaaS HCM incorporated into each HR provider’s bid. IT had recently deployed SuccessFactors globally to 42,000 employees and would remain out-of-scope except for integrations. Originally, the company executives ruled out a change from legacy Tesseract to brand new cloud HCM, but ISG brought market knowledge to help recognize product maturity made this the best use of investment resources.
Imagining IT Differently
ISG led a highly collaborative selection process, with HROs proposing their preferred HR Technology for the best ongoing delivery. Functional capabilities and security requirements were further vetted with IT to confirm HCM solutions were comparable.
Based on market maturity and provider capabilities, the client ultimately selected Workday/AonHewitt, even when all other bidders presented SAP/SF solutions. Formerly part of a single HRO contract, ISG supported separate but interrelated contracts for HCM, HRO/AMS, and Benefits.
Throughout the engagement, ISG navigated conflict of ownership and interests across geographies and corporate stakeholders to determine the HR outcome for North America without disruption to the global talent systems and strategy.
Based on market maturity and provider capabilities, the client ultimately selected Workday/AonHewitt, even when all other bidders presented SAP/SF solutions. Formerly part of a single HRO contract, ISG supported separate but interrelated contracts for HCM, HRO/AMS, and Benefits.
Throughout the engagement, ISG navigated conflict of ownership and interests across geographies and corporate stakeholders to determine the HR outcome for North America without disruption to the global talent systems and strategy.
Future Made Possible
- The company ISG business case support included early identification of benchmark costs, setting leadership expectations for a technology investment and HR Transformation.
- Modern user experience and self service was widely expanded as an integral part of the new HR technology platform.
- The solution incorporated payroll harmonization, automation of outlying calculations and processes, and replaced bolt on functionalities for streamlined operations conducted from a single system of record using a new SaaS HCM system.
