ISG Provider Lens^® report says companies are adopting SAP SuccessFactors with embedded AI features for personalization, analytics

Enterprises are modernizing HR operations using the SAP SuccessFactors platform with scalable rollout models and well-governed AI components in deployment and operations, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens^® global SAP Ecosystem report finds that organizations are shifting their focus from implementation to the full lifecycle of human capital management (HCM) solutions, seeking AI-enabled operating models that enforce design decisions throughout ongoing operations. Enterprises increasingly require auditable controls, such as configuration tracing, analysis of the impact of releases and the ability to roll back deployments, to maintain system integrity while applying continual upgrades.

"The conversation has shifted. U.S. enterprises are demanding HCM transformations that deliver continuous, measurable impact," said Stacey Cadigan, partner, ISG Human Capital Management and Enterprise Transformation. "AI can enable that outcome, but only when it's deployed with strong governance."

Enterprises are accelerating deployments with preconfigured SuccessFactors environments for core HR and talent processes. Standardized configurations reduce the need for customization and improve consistency across business units. Organizations are also streamlining multi-country rollouts by using payroll templates and compliance frameworks. These approaches enable faster implementation while limiting regulatory and operational risks.

Companies using SuccessFactors are embedding AI into both the implementation and operational phases to increase efficiency and acquire better insights. During deployment, AI features enhance configuration, testing and documentation with controlled oversight. In production, AI enhances HR service delivery through personalization and analytics-driven insights. Enterprises retain control over AI implementations through model transparency and rollback capabilities.

Organizations are aligning SAP-based HCM modernization with defined business outcomes by linking application management to performance metrics. Enterprises track improvements in hiring timelines, case resolution and learning compliance through structured monitoring. Telemetry enables continuous optimization and supports ongoing enhancements without repeated business justification. Evaluation processes now require proof of measurable impact before and after deployment, ISG says.

"As HR platforms become more intelligent, internal controls and alignment with broader analytics and identify frameworks matter even more," said Maharshi Pandya, ISG senior lead analyst and lead author of the report. "Standardized integration and clear data ownership across HR and enterprise systems are what make advanced analytics and governance actually work."

The report also explores other trends in SAP SuccessFactors adoption, including the increasing need for auditable data handling and privacy controls in Europe and growing demand for deployment velocity and language coverage in Asia Pacific.

For more insights into the SAP-related challenges faced by enterprises, along with ISG's advice for addressing them, see the ISG Provider Lens Focal Points briefing here.

The report evaluates the capabilities of 26 providers in one quadrant: SAP SuccessFactors HCM Partner Services.

It names Accenture, Capgemini, Deloitte, EY, IBM, Infosys, Strada, TCS and Wipro as Leaders in the quadrant.

In addition, Atos is named as a Rising Star — a company with a "promising portfolio" and "high future potential" by ISG's definition — in the quadrant.

In the area of customer experience, Infosys is named the global ISG CX Star Performer for 2026 among SAP ecosystem providers. Infosys 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.

The 2026 ISG Provider Lens global SAP Ecosystem report is available to subscribers or for one-time purchase on 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 and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

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Press Contacts:

Laura Hupprich, ISG

+1 203-517-3100

laura.hupprich@isg-one.com

Eric Arvidson, Matter Communications for ISG

+1 978-518-4542

isg@matternow.com

Enterprises Achieve Governed HR Transformation with SAP