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Next Generation Supply Chain Management BPS
Nov 12, 2018 | Market Analysis by Janet Irwin
NelsonHall's market analysis of Next Generation Supply Chain Management BPS consists of 49 pages. [...]view this reportdownload abstractTable of contents:
- 1. Introduction
- Vendor SCM BPS covers demand planning through after-sales support
- 2. Changing Shape of Next Generation SCM BPS
- The current SCM BPS market remains driven by order management cost reduction and improved demand forecasting…..
- …with the future digitalization of the SCM BPS market moving to touchless order processing and use of blockchain to manage supply chain integrity
- 3. Customer Requirements
- SCM functions currently reactive and over-reliant on historical information
- Organizations are looking to outsource SCM services to achieve better visibility and performance
- Organizations are changing how they outsource, putting more of the onus of investing in development on the vendors
- Next gen SCM BPS is typically delivering order delivery cycle time reduction of 15-20% and improvements in forecast accuracy of 10%-30%
- Arvato reduced costs in product serialization for pharmas in response to the EU Falsified Medicines Directive
- Capgemini assisted FMCG company with ~400 brands & ~$63bn annual revenue in achieving ~10-20% improvement in forecast accuracy across product lines
- Capgemini assisted multinational medical device, pharma & CPG company with ~$70bn annual revenue in achieving ~$7m in external manufacturing operational savings over 5 years
- Exertis reduced air freight costs ~50% for a French multinational energy management corporation with $28bn annual revenue
- Genpact reduced inventory by ~50% for a hi-tech client with ~12 factories, ~400 channel partners and ~10 demand forecasting units
- GEP synchronized demand forecasting & production planning for a $6bn global chemical company driving annual cost saves of ~$500m
- Infosys achieved ~$75m cost reduction in order management for a global leader in hardware & network equipment manufacturing
- OnProcess Technologies drove ~$3m in annual cost savings for a global oncology radiation treatment OEM with ~$1.3bn annual revenue
- TCS generated direct revenue of ~7.8m with rebilling process of nonreturned parts for a Fortune 50 global conglomerate’s healthcare diagnostic image media business in the U.S. & Canada
- Tech Mahindra reduced TAT for customer orders by ~30% for a large telecom company
- Wipro delivered ~36% ROI by automation or order management for a large telecom equipment manufacturer
- WNS assisted a Fortune 500 cosmetics company in achieving ~20% reduction in order delivery cycle times
- 4. Market Size and Forecast
- North America and EMEA currently account for ~90% of the SCM BPS market with strong growth also expected in APAC
- CPG & retail will remain the dominant sector for SCM BPS through 2022
- 5. Vendor Market Shares
- The global SCM BPS market is led by Arvato, followed by TCS, Infosys, Genpact, Wipro, Accenture, HCL Technologies, & OnProcess….
- ….challenged by DXC Technology, Cognizant, EXL Service, Capgemini, Tech Mahindra, Sutherland, GEP, and IBM
- The North American SCM BPS market is led by TCS, Wipro, Infosys, Arvato, HCL Technologies, OnProcess, Accenture, & Cognizant
- ….followed by DXC Technology, Genpact, Sutherland, Capgemini, Tech Mahindra, GEP, and IBM
- The EMEA market is led by Arvato, TCS, Genpact, EXL Service, Accenture, Infosys, DXC Technology, Capgemini, & Tech Mahindra….
- ….followed by HCL Technologies, OnProcess, GEP, Exertis, and Sutherland
- 6. Delivery in Next Generation SCM BPS
- 84% of SCM BPS delivery personnel are based offshore, predominantly in India
- Proprietary tools used in SCM BPS include platforms for dashboards and analytics…..
- …demand forecasting and promotion effectiveness…..
- …..master data, order and logistics management….
- …..service and shopfloor support as well as more general-purpose automation and AI platforms
- Key elements of Next Gen SCM BPS include automation, cognitive/machine learning….
- ….Social media insights, mobile-enabling, and drone-based warehouse management
- …with blockchain and connected operations becoming key to the future
- 7. Challenges and Success Factors
- Key vendor success factors include deep domain expertise combined with ability to reinvent supply chain processes using analytics, ML, and blockchain…
- …while the biggest challenges for SCM services vendors include acquiring onshore SMEs and moving beyond consulting & project assignments
- Appendix I
- Vendors Researched
UX-UI Services
Oct 11, 2018 | Market Analysis by David McIntire
NelsonHall’s market analysis of UX-UI Services consists of 49 pages (plus detailed appendices). [...]view this reportdownload abstractTable of contents:
- UX-UI services enable clients to transform how they interact with customers and employees to generate added value
- 1. Changing Shape of UX-UI Services
- UX-UI services use research and design thinking to help clients transform their customer or employee digital interactions…
- …but is shifting to experiences driven by emerging technologies and end to end service design with a quantified value realized
- 2. Customer Requirements
- UX-UI Services are evolving from customer-facing web to conversational interactions and service design
- Past
- Present
- Future
- ~65% of clients engage vendors to support specific identified objectives
- Benefits sought from engaging a vendor for UX-UI services primarily focus on customer satisfaction and retention with increasing customer base or revenues growing in importance
- Now and in the future, clients’ primary focus is on a vendor’s onshore design consulting, tailored frameworks and templates and hosting and delivering design thinking sessions
- Clients are seeing UX-UI services drive improved customer satisfaction scores and improving online conversions
- Adoption of UX-UI services are inhibited by limited visibility to value realized and time commitments
- The greatest uptake of UX-UI Services is in consumer-facing industries
- Mphasis transformed a travel insurance app for a large global insurer to increase conversions by 25%
- Grow adoption of travel insurance through transformed app
- Virtusa transformed a restaurant’s mobile ordering app improving NPS by 91 points
- Restaurant group growing business through mobile ordering
- NTT DATA’s Digital Entity group help an Italian fintech build a new digital payments business
- Building a new business through the use of digital UX
- Foolproof transforms End to End B2B process for Oil Major, reducing cost $7.5m, and improving customer satisfaction
- Enterprise transformation to drive better user experience
- 3. Market Size and Forecast
- Market for UX-UI consulting & implementation services is poised to grow ~15.4% CAAGR to reach $10.8bn by 2022
- North America places the greatest importance on UX-UI design services today, though APAC and Latin America will grow faster
- Broad-based growth is led by consumer facing industries such as retail, healthcare, BFSI and transport through 2022
- 4.1 Vendor Market Shares
- The global UX-UI services market is led by Accenture, IBM, TCS, NTT DATA, and Infosys
- 4.2 Vendor Market Shares by Geography
- The North American UX-UI services market is led by IBM, Accenture, TCS, Infosys and NTT DATA
- The EMEA UX-UI services market is led by IBM, Accenture, NTT DATA, TCS and Infosys
- The APAC UX-UI services market is led by Accenture, TCS, NTT DATA, and IBM
- 5. Vendor Offerings & Targeting
- The early focus on external facing UX initiatives is evolving and will see an equal number of internal initiatives by 2020
- As client interest in UX-UI services grows, vendors are helping clients better quantify the value realized from the investment
- Key business case factors
- As the scope of UX-UI services grows and evolves, it is increasingly delivered as a bundle with other services
- Looking beyond customer interface, clients are increasingly looking for vendors to support a full service design transformation
- Vendors are also engaging to build client’s own internal capabilities in addition to delivering projects
- 6. Vendor Delivery
- Vendors are using design thinking processes to collaboratively develop solutions with users and stakeholders
- User research to inform design process aligns stakeholders with user and customer needs
- 75% of vendors have invested in dedicated design studios to drive the facilitation of client workshops
- Vendor design thinking spaces include open collaboration spaces and specialized usability testing rooms
- Vendors are building UX-UI design capabilities proximate to their clients, and are supported by both local and remote developers
- Close client and user collaboration drives a majority of UX-UI services to be delivered from client proximate locations
- IT service vendors are primarily using commercially available tools to support UX-UI services, in particular Adobe
- 56% of vendors have acquired design agencies to build UX-UI consulting capabilities
- Investment focuses include UX offerings for emerging areas such as AR/VR and voice and expanding delivery capabilities
- 7. Challenges and Success Factors
- Vendors need to be able to quantify the business value of intangible customer or user experiences
- Developing a Quantified Business Case for UX-UI Services
- Design agencies and creatives have different culture and priorities than IT service acquirers
- Integration of Creative Services
- Key success factors to deliver UX-UI services include a design studio network and service design mindset
- Appendix I
- Vendor Investment Priorities
- Vendors are looking to expand emerging technology, including AR/VR and conversational and voice UI offerings
- Appendix II
- Vendor Design Studio Locations
- Vendor Design Studio Count by Region
- Appendix III
- Glossary and Definitions
- Glossary of Terms
- Appendix IV
- Vendors Researched
- Vendors Researched for Analysis
Targeting Life, Annuities & Pensions BPS
Oct 03, 2018 | Market Analysis by Suri Nair
NelsonHall's market analysis of the Life, Annuities & Pensions BPS industry and trends consists of 57 pages. [...]view this reportdownload abstractTable of contents:
- 1. Introduction
- Life, Annuities & Pensions BPS – definition and report description
- 2. Changing Shape of the Life, Annuities & Pensions Market
- LA&P BPS is currently dominated by closed block with a high level of offshoring……
- ….with onshoring expected to grow as RPA reduces offshore activity and demand increases to support new products
- 3. Customer Requirements
- The EU insurance industry is impacted by Solvency II mandates for improved solvency metrics and consumer protection…..
- Regulatory issues affecting life, annuity and pension issuers in the EU
- …..but Solvency II may not apply in the future to U.K., with Brexit
- Regulatory issues affecting life, annuity and pension issuers in the U.K
- U.S. insurance regulations for LA&P are pushing carriers towards convergence in risk-metric presentation and consumer-friendly policy presentation...…
- Regulatory issues affecting life, annuity and pension issuers in the U.S…
- ...with U.S. regulatory issues including a proposed alteration in capital reserves calculation, and regulatory convergence & compliance
- Regulatory issues affecting life, annuity and pension issuers in the U.S…
- Changing demographics in the U.S. and EU are affecting LA&P issuers’ offerings, which are increasingly focusing on specialized products and annuities…
- Social and economic issues affecting life, annuity and pension issuers…
- …and a need for greater customer engagement, as challenges from start-ups are disrupting industry practices
- …continued
- Current major issues facing insurers include high costs from use of legacy platforms, time to market for launching new products, and increasing regulatory requirements
- Operational life, annuities and pensions BPS issues
- Closed block LA&P BPS drivers
- …while speed to market, support for specialist product market entry, and access to differentiated engagement models are the main drivers for open block business
- Open block LA&P BPS drivers
- Life companies still enhancing digital customer experience but looking to take an end-to-end approach to digitalization
- Customer experience transformation requires improved customer experience platform, improved customer segmentation, and incorporation of customer analytics
- Key areas for process transformation & automation initiatives are policy administration, customer service, and new business
- Half of life companies favor replacing legacy platforms with new single insurance platform
- Characteristics sought from operations transformation partners include both automation & provision of agents
- Life insurance is still primarily focused on RPA roll-out rather than wider adoption of
- Best practice process models and onshore employee change management are key ingredients of future BPO contracts
- Main benefits sought by LA&P insurers include closed block business cost reduction, speed to market capabilities, and CSAT improvement through new technologies and engagement models
- Benefits
- LA&P insurers are seeking vendors which can minimize policy administration costs and optimize business processes with automation, workflow and dashboard tools…
- Closed block policy administration cost reduction segment
- Open block LA&P BPS need new engagement models, greater flexibility and reduced cost of entry to new markets
- ‘Speed to market’ open block segment
- WNS assisted a leading U.S. insurer in enhancing actuarial modelling processes
- WNS: Actuarial Modeling
- TCS introduced RPA and chatbots into insurance processes for a large Australian insurance provider
- TCS: Redesign operating framework with RPA
- Genpact migrated an insurer’s policy data using Rapid Automation
- Genpact: Data migration using Rapid Automation
- DXC enabled a leading life insurer to streamline internal processes and improve customer service to become more competitive
- DXC: Streamline internal processes and improve customer service
- EXL identified a premium customer segment for a life company based on the customer expected lifetime value
- EXL: For a leading life insurance company
- Kane LPI completed a platform migration for an insurer in support of new product introduction
- Kane LPI: Migration from its legacy platform to Kane LPI's proprietary IMS system
- DXC implemented a new product for an insurer in six months with subsequent product launches in 30 days with 20% savings
- DXC: New product launch with speed to market
- SE2 transitioned an acquired life & annuities block to its platform achieving resulting administrative savings of 60%
- SE2: Convert and transition a block of business
- TCS identified strategies to improve collection and retention/ renewal rates for a large Indian life insurer
- TCS: Retention/renewal strategies
- 4. Market size and Growth
- Life, Annuities & Pensions BPS market forecast to reach $3.5bn by 2022
- Growth will be strongest in open block in both U.S. and U.K.
- 5. Vendor Market Shares
- The Global Life, Annuities & Pensions BPS market is led by Capita, TCS, Se2, Accenture, EXL Service, and DXC
- The North America Life, Annuities & Pensions BPS market is led by SE2, EXL Service, DXC, TCS, Cognizant, Capgemini, and Genpact
- The EMEA Life, Annuities & Pensions BPS market is led by Capita, TCS, Accenture, HCL, Atos, and IFDS
- The U.K. Life, Annuities & Pensions BPS market is led by Capita and TCS, followed by HCL, Atos, WNS, and IFDS
- 6. Vendor Offerings and Targeting
- While policy servicing, claims management, new business services, and agency management services continue with steady growth, actuarial and analytics services are also growing….
- …with DXC, SE2, TCS and WNS offering end to end LA&P BPS services
- Policies types experiencing increased demand for LA&P BPS services include annuities and variable life
- An estimated 40% of LA&P providers have acquired or partnered in the last three years, with EXL playing an active role
- 7. Vendor Delivery in Life, Annuities and Pensions, BPS
- DXC, Infosys, NIIT and TCS primarily focus on closed block policy administration, while Kane and EXL have strong presence in new business administration
- Offshore delivery accounts for unweighted average of 64% of LA&P BPS FTEs
- Agency services, surrender and terminations, fund support and actuarial services are primarily delivered from offshore locations
- Per policy pricing is most commonly adopted followed by transaction based pricing
- 8. Critical Success Factors
- Critical success factors in Life, Annuities & Pensions BPS include:
- Appendix I: Vendors Researched
- The following vendors were researched in this report
Blockchain Services
Sep 27, 2018 | Market Analysis by David Mayer
NelsonHall's market analysis of the blockchain industry and trends consists of 79 pages. [...]view this reportdownload abstractTable of contents:
- 1. Introduction
- Blockchain Is No Longer a Speculative Technology
- The Blockchain Technology Picture: Competing Standards, and a Long Tail of Specialized Platforms
- Platforms in the Blockchain services space can be categorized along axes of open to permissioned, and flexible to purpose-built
- Blockchain technology can be classified into quadrants
- Quadrant I platforms are for secure, high-performance use cases
- Quadrant II platforms are generally cryptocurrency applications
- Quadrant III platforms are generally consumer noncoin applications
- Quadrant IV platforms are enterprise blockchain breadth plays
- 2. Changing Shape of the Blockchain Market
- The current blockchain market is driven by cost and cycle time reduction, transparency and trust, and transaction audit security
- Blockchain architecture and deployment process will change from a point solution to an ecosystem by 2022
- The next jump (from point solution blockchain to ecosystem blockchain) will demand interoperability and business partnership
- 3. Customer Requirements
- Operating transparency, audit quality control, and cost reduction are among the top drivers for blockchain adoption
- Blockchain is emerging as a component of digital transformation
- Interoperability is a top topic of conversation for vendors and clients
- The most common use cases for blockchain today are cross-border remittances, SCM/provenance, and invoice settlement
- 3.1 Blockchain In-Use Case Studies
- EY Implemented Blockchain to Achieve Daily Settlement in Microsoft’s Digital Content Royalty Payments
- Objectives
- Results
- Atos Designs, Deploys Food Traceability Solution for Bureau Veritas
- Objectives
- Results
- Wipro Constructs Blockchain for Waterborne Commodity Trading
- Objectives
- Results
- Infosys Provides Airline With Blockchain Airworthiness Solution
- Objectives
- Results
- IBM Assisted Maersk in Implementing Blockchain in Support of Shipping
- Objectives
- Results
- Tech Mahindra Designs CBR Blockchain Platform for State Bank of India
- Objectives
- Results
- 3.2 Blockchain Pilots and PoCs
- ATOS Provides BFSI Client with Corporate Bond Issuance Blockchain
- Objectives
- Results
- EY Deploys Tesseract Asset Management for German Auto Sharing
- Objectives
- Results
- Infosys Addresses International Mobile Carrier’s International Roaming Challenges
- Objectives
- Results
- Tech Mahindra Pilots Loan Origination Solution for Indian Bank
- Objectives
- Results
- Wipro Readies GDPR Solution for EU Consumer Goods Firm
- Objectives
- Results
- Virtusa Streamlines Commercial Loan Covenant Management
- Objectives
- Results
- TCS Designs Blockchain Securities Settlement Platform for ABN AMRO
- Objectives
- Results
- Capgemini Builds Policy Bidding Blockchain for Italian Insurance Brokerage
- Objectives
- Results
- Mphasis Re-Imagines Mortgage Origination on Blockchain for Bank Client
- Objectives
- Results
- IBM Manages Own Vendor Invoices on Blockchain Settlement Solution
- Objectives
- Results
- NTT DATA Provides Interbank Reconciliation Solution for ABI
- Objectives
- Results
- 4. Market Size and Growth
- Global blockchain implementation & management market will grow at 94% CAGR to $8.6bn by 2022
- ...with significant growth in U.S., U.K. & Continental Europe, Middle-East, Japan , South Korea
- Banking and insurance lead the global blockchain market, followed by healthcare, manufacturing, energy & utilities, & logistics
- Banking and insurance is the primary demand industry for blockchain deployment, and will remain so – along with healthcare and manufacturing – over our forecast period
- Forecast assumptions: platforms become interoperable and consolidate; quantum computing nets out to a neutral impact
- 5. Vendor Market Shares
- IBM, Infosys, and Wipro lead SI blockchain market in revenues to date
- 6. Vendor Offerings and Targeting
- Blockchain solution delivery in 2018 is typically set up around a CoE with liaisons to the organization’s vertical and horizontal business units.
- Use case definition is changing as vendors identify commonality of applications, with best practices usually ‘stored’ between the CoE and horizontal SBUs.
- Vendors are of three types in blockchain platform architecture: agnostic, monolithic, and bespoke
- AGNOSTIC VENDORS
- MONOLITHIC VENDORS
- BESPOKE VENDORS
- Blockchain will increasingly Transition from PoCs to Production Deployments during 2018
- Ethereum/Quorum Dominate Use Case Infrastructure, But Hyperledger and Corda are Gaining Ground
- Ethereum and Hyperledger Fabric are the market share leaders for platforms in a long-tail market with many competitors.
- By 2022, we forecast a more clearly-defined set of use-specific platforms with the combined Hyperledger family of project architectures leading the way; Hashgraph becomes commercially viable.
- Market Sentiment increasingly favors Fabric, Corda, & Quorum Blockchain Platforms
- The U.S. and EMEA dominate target geographies for service providers
- BFSI, healthcare, manufacturing are most targeted verticals
- IBM, Infosys, Tech Mahindra lead in Banking & Insurance use cases
- IBM, Wipro, EY, Tech Mahindra lead in manufacturing use case diversity
- Wipro, Infosys, TCS, NTT DATA lead in life sciences use case diversity
- IBM, Wipro take lead in Energy & Utilities sector use case diversity
- Tech Mahindra, NTT DATA, Infosys, EY lead in telecom & media use case diversity
- Wipro, Tech Mahindra lead in public sector use case diversity
- The Fortune 1000 is the primary target for blockchain vendors
- Current blockchain-related M&A activity is dominated by technology companies, but we expect service provider M&A to pick up in 2019…
- …with acquiring firms seeking to add specialized capabilities such as throughput acceleration, quantum computing-proofing, and AI
- Vendor roadmaps focus on accelerator development, solution preconfiguration, interoperability, and partner ecosystem expansion
- Moves to accelerate deployment, ease client concerns dominate roadmap initiatives
- 7. Selection Criteria, Challenges, and Success Factors
- Primary drivers of blockchain vendor selection are demonstrable improvements in security, transparency, and transaction processing speed
- Vendor selection is strongly influenced by similarity of proven commercial deployments to new engagements and the provider’s vision for blockchain within digital transformation.
- Principal challenges for vendors today are breadth and depth of solution experience by vertical market, horizontal process, and blockchain platform.
- Downstream success for blockchain services vendors depends on their ability to connect multiple areas of the organization
- Appendix I – Vendors Researched
- Blockchain services vendors researched
Cloud Infrastructure Brokerage and Orchestration Services
Sep 25, 2018 | Market Analysis by John Laherty
NelsonHall's market analysis of cloud infrastructure brokerage and orchestration services industry and trends consists of 64 pages plus detailed appendices. [...]view this reportdownload abstractNext Generation Mortgage & Loan BPS Market Assessment and Forecast
Sep 17, 2018 | Market Analysis by Andy Efstathiou
NelsonHall's market analysis of the mortgage and loan market consists of 94 pages. [...]view this reportdownload abstractTable of contents:
- Changing Shape of Next Generation Mortgage and Loan BPS
- Buy-Side Requirements
- Market Size and Growth
- Vendor Market Shares
- Vendor Offerings and Targeting
- Vendor Challenges and Success Factors
- Appendix A – Service Definitions
- Appendix B – Vendor Details
- Appendix C – Key Regulations Impacting the Adoption of Next Generation Mortgage and Loan BPS
Application of RPA and AI to Transform HR Outsourcing
Sep 10, 2018 | Market Analysis by Pete Tiliakos
NelsonHall's market analysis of the application of RPA and AI to Transform HR outsourcing and trends consist of 43 pages. [...]view this reportdownload abstractCloud & Multi-Process HR Services: Journey to the Cloud and Beyond
Sep 06, 2018 | Market Analysis by NelsonHall Analyst
NelsonHall's market analysis of the global cloud & multi-process HR services industry and trends consists of 103 pages. [...]view this reportdownload abstractTable of contents:
- Preamble
- Definition of Cloud HR Services
- Definition of Multi-Process HR Services
- 1. Changing Shape of Multi-Process HR Services
- The current cloud HR services market is characterized by a stair-step purchasing approach, with either advisory or implementation services as the gateway offering…
- … by 2022, the cloud HR services market will shift to a bundled purchasing approach
- The current overall multi-process HR services market size is declining y/y due to lower TCVs for deals leveraging cloud HCM technology…
- … however, the cloud-based multi-process HR services market will grow at a compounded average annual rate of 4.5% through 2022
- 2. Customer Requirements
- Industry issues affecting the cloud HR services market include HCM system choices, migration challenges, and ongoing system management
- Industry Issues Affecting the Cloud HR Services Market
- Support for cloud HR services typically follows a stair-step approach, commencing with either advisory services or implementation, followed by AMS support and then HR BPaaS
- Drivers of cloud HR services include complex legacy environments, with outsourcing providing access to knowledgeable certified system consultants
- Case Study: A communications company needed to establish a global HR infrastructure and HR programs to support growth and turned to Accenture… resulting in management consulting and project management for the deployment of Workday
- Case Study: A financial services company was seeking process redesign support prior to its implementation of SAP SuccessFactors and turned to Deloitte… resulting in one integrated system for full visibility
- Case Study: An energy company was seeking a full-scale HR transformation by implementing Workday and turned to Alight Solutions… resulting in the elimination of 30 HR and IT systems
- Case Study: A financial management company was seeking to replace expensive heavily customized legacy HR systems and turned to DXC Technology… resulting in the deployment of Workday
- Case Study: A non-profit was lacking the skills to manage Workday tickets and turned to Capgemini… resulting in the resolution of all incoming tickets within the SLAs
- Case Study: A technology company was seeking post-deployment support of their Workday environment and turned to NGA HR… resulting in maximized functionality
- Industry issues shaping the multi-process HR services market include cloud HCM systems, compliance, and globalization
- Industry Issues Affecting the Multi-Process HR Services Market
- Cloud-based platforms have fueled the evolution of the multi-process HR services market, which now focuses on modernizing processes by incorporating digitalization, RPA, and machine learning
- The top driver for multi-process HR services is to gain access to vendor expertise, followed by cost reduction
- Case Study: A financial services company was seeking a BPaaS partner with experience operating on Workday and turned to OSV… resulting in growth without added headcount
- Case Study: A consumer products company was seeking to restructure HR as it was splitting into two organizations and turned to Conduent… resulting in strategically focused HR
- Case Study: A security services company was merging with another company and turned to ADP for BPaaS support… resulting in the reduction of the HR organization
- Cloud HR services tend to be priced separately by offering, even when services are bundled together
- Per employee pricing dominates multi-process HR services contracts, with demand for consumption-based pricing increasing
- Contract lengths for multi-process HR services continues to shorten, with the overall average at 4.8 years
- 3. Market Size and Growth
- The global cloud HR services market will reach $3.4bn by 2022, with a 5.7% CAAGR
- For the next five years, majority of the cloud HR services market will focus on pre-deployment and deployment activities
- Workday services lead the global cloud HR services market, accounting for ~27%
- Combined, cloud HR services for Workday, SAP SuccessFactors, and Oracle HCM Cloud represent nearly 70% of the market
- The global multi-process HR services market size is declining 5.8% y/y as revenues from legacy on-premise deals erode
- The global multi-process HR services market is led by the U.S. which is also the largest region for next generation cloud-based multi-process HR services deals
- Approximately 40% of the 2017 multi-process HR services market is leveraging cloud HCM platforms, with the inflection point at 2019
- The manufacturing sector accounts for nearly one quarter of the market due to legacy contracts leveraging on-premise technology, with strong growth expected from financial services, technology, and pharmaceuticals
- 4. Vendor Market Shares
- ADP holds ~9% of the global cloud HR services market, providing support for its Workforce Now, Vantage HCM, and GlobalView platforms
- Market leaders of the cloud HR advisory and implementation services market include the Big 4 consultancy firms
- The cloud HR AMS services market is led by vendors with proprietary platforms
- Several Workday services vendors such as Alight Solutions, OSV, and DXC Technology have also deployed Workday HCM internally
- Leaders of the global SAP SuccessFactors services market tend to have longstanding relationships with SAP
- ADP dominates the global cloud proprietary services market with ~46% market share
- The multi-process HR services market is led by Alight Solutions, ADP and IBM, all who have made heavy investments in the cloud HR services market…
- … followed by Capita, SD Worx, and NGA HR, who collectively hold ~15% market share
- North America multi-process HR services market is led by Alight Solutions, whose clients leverage both on-premise and cloud HCM technologies…
- …challenged by ADP, whose offering is exclusively provided on its proprietary cloud HCM platforms
- European multi-process HR services market is led by Capita with ~17% market share, followed by SD Worx, IBM, and Alight Solutions
- … with Indian-headquartered vendors including Neeyamo, and Infosys collectively generating $9m in multi-process HR services revenues in EMEA
- U.K. multi-process HR services market is dominated by U.K.-based provider Capita, with nearly 25% market share…
- … with Alight Solutions, Conduent, NGA HR, and DXC Technology also present
- The APAC multi-process HR services market is led by IBM, followed by Alight Solutions, Excelity, and DXC Technology
- The LATAM multi-process HR services market is led by U.S.-based vendors that serve multi-country contracts that include employee populations in LATAM
- 5. Vendor Offerings
- Cloud HR services focus on technology-oriented activities, while multi-process HR services focus on managed process support
- Advisory services are typically leveraged by large market organizations and are often bundled with implementation services
- Rapid deployment solutions are becoming a key part of the cloud HR services offering
- While many vendors offer cloud HR services across different HCM platforms, there are vendors focused exclusively on one platform
- Vendor strength for cloud HR services by platform tends to be high for one or two of the leading third-party cloud HCM platforms…
- … with many vendors also providing cloud HR services for other third party platforms such as DXC Technology for Cornerstone OnDemand
- Core multi-process HR services offerings focus on HR admin, payroll, benefits, recruiting and learning, with additional services extending to broader relocation and exit management offerings
- There are three technology scenarios underlying multi-process HR services, with majority of vendors taking an agnostic platform approach
- On the journey to the cloud, organizations typically transition through each platform evolution
- Approximately 40% of the multi-process HR services market is operating in a cloud environment…
- … with majority of vendor HR BPaaS capabilities strongest on Workday and SAP SuccessFactors
- Some vendors offer proprietary portals as an alternative to cloud HCM system interfaces
- End-to-end cloud and multi-process HR services deals are extremely rare; the core multi-process HR services bundle includes HR/workforce administration and payroll
- The average number of services in scope within multi-process HR services contracts in 2017 was 2.7 processes
- Vendor consolidation within the cloud HR services market has been increasingly active, with the emphasis on expanding Workday Services practices to new geographic markets
- 6. Vendor Targeting
- Targeting for cloud and multi-process HR services varies by each particular service, but overall tends to focus on mid & large companies
- Vendors with agnostic platform approaches to the cloud HR services market tend to target multiple geographic regions…
- … while platform specialists such as Zalaris and Kainos largely targeting one region
- Cloud-based multi-process HR services contracts are primarily focused on a single country, mostly from the U.S., followed by continental Europe
- Multi-process HR services continue to make strides with midmarket organizations due to affordability
- All vendors’ client portfolios contain a combination of both mid and large market clients, with mid-market activity continuing to increase…
- … the proportion of single country multi-process HR services contracts remained relatively unchanged over the last two years
- While multi-process HR services vendors do not target by vertical, majority of vendor revenues tend to come from one to three verticals…
- …with manufacturing and financial services as a top sectors across most vendors
- 7. Delivery Capabilities
- Successful delivery of cloud HR services is dependent on platform certified consultants
- Emphasis on multi-shoring for multi-process HR services remains high to leverage lower-cost resources for non-complex transactions
- Nearly all multi-process HR services vendors leverage offshoring…
- … India remains the preferred offshore location…
- … followed by the Philippines, and then China
- Immediate delivery priorities for vendors are focused on omnichannel strategy development and expanding delivery networks
- The application of RPA in cloud and multi-process HR services is increasing
- Partnerships with end-to-end HCM platform vendors are essential for cloud HR services delivery
- For multi-process HR services, partnerships exist for both service delivery and technology
- 8. Vendor Challenges and Success Factors
- The main inhibitor for cloud HR services is the desire to maintain the status quo and ride out previous technology investments
- Inhibitors to Cloud HR Services
- The assumption that operating on cloud HCM platforms is straightforward is the top inhibitor for the adoption of multiprocess HR services
- Inhibitors to Multi-Process HR Services
- The primary vendor challenge for cloud HR services is addressing customer apprehension about change resulting from the cloud transformation project
- Challenges to Cloud HR Services
- The negative connotation with legacy deals from the early 2000’s is a big hurdle for multi-process HR services vendors
- Challenges to Multi-Process HR Services
- The top vendor selection criteria for cloud HR services is expertise and proficiency with the desired cloud technology
- Vendor Selection Criteria for Cloud HR Services
- Ability to make the business case, demonstrate significant cost reduction, and create a collaborative environment are important vendor criteria for multi-process HR services
- Vendor Selection Criteria for Multi-Process HR Services
- Long-term success for cloud HR services vendors depends on geographic expansion
- Critical Success Factors for Cloud HR Services
- Establishing a value-add differentiator is critical for vendors operating in the multi-process HR services market
- Critical Success Factors for Multi-Process HR Services
- Appendix I: Vendors Researched for Analysis
- Vendors Researched for Analysis – I
- Vendors Researched for Analysis – II
- Vendors Researched for Analysis – III
Next Generation Total Talent
Sep 04, 2018 | Market Analysis by Nikki Edwards
NelsonHall's market analysis of the total talent acquisition industry and trends consists of 54 pages. [...]view this reportdownload abstractTable of contents:
- The Changing Shape of Total Talent Acquisition
- Customer Requirements
- Market Size and Growth
- Vendor Offerings and Targeting
- Vendor Delivery of Total Talent Acquisition
- Challenges and Success Factors
- Appendix I: Services Offered
- Appendix II: Third-Party Platforms & Tools Used by Total Talent Vendors
- Appendix III: Vendors Researched
- Appendix IV: Abbreviations and Definitions
Digital CX Services
Jul 18, 2018 | Market Analysis by Ivan Kotzev
NelsonHall's market analysis of Digital CX Services consists of 110 pages. [...]view this reportdownload abstractTable of contents:
- Introduction
- Changing Shape of Digital CX Services
- Customer Requirements
- Market Size and Growth
- Vendor Market Shares
- Vendor Offerings and Targeting
- Delivery in Digital CX Services
- Selection Criteria, Challenges, and Success Factors
- Appendix I – Vendors Researched
- Appendix II – Glossary
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