At the end of 2015, private equity group Blackstone closed the purchase of Serco’s private sector BPO business for £250m (~$375m), and the company has now rebranded to its original name, Intelenet Global Services. Today, Intelenet employs ~55k staff across 66 delivery centers in eight countries, providing Customer Management Services (CMS), F&A, Knowledge Management, and ITO servic[...]

BPO contract TCV in Q1 2015 continued the improvement in contract activity seen in Q4 2014, with BPO TCV picking up and gaining momentum over the past two quarters following relatively low levels of BPO TCV awarded in Q2 and Q3 2014. In particular, Q4 2014 showed a 6% improvement in BPO TCV year-on-year, with BPO accounting for 31% of total outsourcing TCV. Q1 2015 BPO TCV performance then impr[...]

By Amy Gurchensky, Liz Rennie and Gary Bragar With total HRO service growth in the high single digits in 2014, service providers are growing both organically and inorganically to meet clients’ needs. The primary reasons for M&A and partnerships across HRO service lines were to enhance service delivery capability (60%) and support geographic expansion (40%). Here we take a closer look [...]

By Amy Gurchensky, Liz Rennie, Gary Bragar 2014 was a busy year for HRO with ~60 partnerships, mergers and acquisitions combined. We now take a look at what to expect in 2015 and beyond for each HRO service line, including service offerings, market developments, and growth. MPHRO driven by continued shift to cloud-based platforms The Multi-Process HRO (MPHRO) market will grow with a mi[...]

In the last twelve months we have more customer management services (CMS) BPO investment in South Africa, including  Webhelp setting up centers in Cape Town and Johannesburg with an agent headcount approaching 1,000 Capita transitioning part of its O2 support to Cape Town in the form of a ~1,400 seat operation. One (of many) attributes that make South Afr[...]

NelsonHall’s latest CMS market analysis focuses on the increasing importance of transformational CMS, whereby a vendor not only takes over the running of a client’s call center processes, but seeks to optimize these processes to achieve the desired business goals of the organization. In the current market, the need to reduce cost while maintaining or enhancing customer satisfaction [...]

Last week Serco Group provided an update on its H1 2014, at the start of its close period before the results on August 12, 2014. Overall performance is in line with the guidance for H1 2014 given in the market update two months ago, of Adjusted revenue of ~£2.4bn, broadly flat y/y on an organic basis A significant y/y decline in margins, with an improvement expected in H2. [...]

Serco announced its 2013 results this week including: Revenue £4,288.1m up +5.6%, up +6.7% at constant currency (CC) Operating profit was £143.8m, a margin of 3.4%, down 330 bps The decline in profits was anticipated with a warning given by the company to this effect only a few weeks ago. In this period, Serco reported a net exceptional charge of £90.5m, reflecting p[...]

Serco has updated its guidance for 2013 and 2014 following its clearance by the U.K. government to bid for new contracts.  Serco expects a mid-single digit percentage organic decline on 2013 revenue due to: Lower levels of incremental work won across the group to date Attrition from contracts lost such as electronic monitoring Volume reductions in its Australian immigration detent[...]

Per NelsonHall’s blog of December 12, 2013 was a healthy year for HRO, with overall contract activity up ~37%. We now take a look at what we can expect in 2014 by HRO service line. MPHRO We predict the Global MPHRO market will grow at mid-single digits CAAGR through 2017 The Shared Service Transformation segment will continue to grow mainly as a result of contract expansions and ren[...]