Payroll is a backend, internal business function with the sole objective of paying people in an accurate and timely manner. Hence, process transformation has never been the topmost priority for payroll professionals. Lately, businesses are transforming their people, processes, and technology to improve compliance and costs and manage ancillary priorities such as unifying global payroll operations, generating payroll insights, improving employee experience, and facilitating seamless employee mobility. Companies are increasingly partnering with payroll service providers to consolidate their vendor base, improve digital adoption, and offer on-demand payroll. As a result, the number of active clients of payroll business process transformation service providers has increased by 21% between June 2022–June 2023. Both demand- and supply-side trends are covered in Avasant’s Payroll Business Process Transformation 2023–2024 Market Insights™ and Payroll Business Process Transformation 2023–2024 RadarView™, respectively.

With rapid digitalization, enterprises are creating a high demand for digital skills. Advances in generative AI and the adoption of large language models (LLMs) are disrupting the talent landscape, with current roles being reshaped and new job roles such as prompt engineers, LLM architects, and data curators and trainers seeing high demand. The gig work model is seeing long-term adoption, with the demand for gig workers increasing by 41% during 2016–2022, driven by access to specialized skills and cost benefits. The demand is further enhanced by global capability centers (GCCs) ramping up hiring to access skilled talent in locations like India. As a result, finding and retaining the right digital talent has become increasingly difficult for organizations. To address the challenges of the competitive talent landscape, enterprises pivot toward skills-based models of talent recruitment and development. Both demand-side and supply-side trends are covered in Avasant’s Digital Talent Capability 2023–2024 Market Insights™ and Digital Talent Capability 2023–2024 RadarView™, respectively.