Tieto's Q2 2014 revenues were €386.4m, down 7.3% y/y, and down 1.3% y/y at constant currency. (for full details see here)  Q2 2014 revenue (and growth both on an actual and CC/organic basis) by service line was: Managed Services: €132m (+5%, +9%). Half of the CC organic growth this quarter resulted from hardware reselling as part of a large IT infrastruct[...]

How Talent2 addresses the HR Cloud SaaS puzzle with payroll Talent2’s cloud-based HR SaaS with integrated payroll services offering now represents 25% of the company’s HR/payroll revenues. Its revenues have been growing at ~10 % per annum and NelsonHall expects cloud based HR SaaS with payroll services to represent 30% of Talent2’s HR/payroll revenue by 2015. Talent2’[...]

What do Infosys’ Q1 FY 2015 results indicate about its current performance and its general health as a new CEO arrives? (a full breakdown of the results are available here) Revenue growth of 7.1% was in the 7% to 9% guided range for the full year, albeit at the low end. This was the third quarter in a row of decelerating growth, in both reported and constant currency gro[...]

Per NelsonHall’s learning BPO market analysis and concurrent client interviews conducted as part of the NelsonHall Evaluation and Assessment Tool (NEAT), both providers and buyers (current and prospective), will be pleased to know that learning BPO is largely meeting and exceeding client expected benefits in six out of seven criteria sought by clients. Based on interviews with LBPO client[...]

The HRO market is always buzzing with activity. With the first half of the year over, it’s a good time to examine the key trends by service area. Benefits Administration: Benefits administration was a hotbed of activity in H1!  Contracts were awarded across various service lines in the U.S. as well as in the U.K. There was a solid stream of pensions and retirement administration c[...]

After three months of talks, Teleperformance is to acquire Aegis' U.S, Philippines and Cost Rican operations for $610m. The transaction will involve the transfer of 19,000 agents (18,000 work stations) in 16 centers, representing ~$400m in annual revenues.  Aegis will bring to Teleperformance the following operations: The U.S: nine sites with ~5,300 total seats The Ph[...]

TCS recently briefed NelsonHall on the intelligent testing system (ITS) it launched in April 2013 in an effort to automate tasks across the software testing lifecycle. It intends to  expand usage of test automation from test execution to include other tasks e.g. test design and test support services such as test data management and service virtualization. ITS integrates COTS tools e.g. Inf[...]

Wipro has partnered with the London Stock Exchange Group (LSE) to launch a hosted multi-tenant reconciliation utility. Each partner will provide:  LSE: UnaVista platform (proprietary platform which provides transactions, reconciliations, reporting, etc.) The platform overs all instrument types and is used by ~1,000 financial institutions  Data center hosting[...]

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. [...]

In the world of IT services, professional services, e.g. consulting, systems integration and application development, are a cyclical business. Spending growth – or decline – depends very much on GDP growth, corporate moral and investment intentions. Professional services growth has varied since on a quarterly basis, since 2008, between -8% to +9%, on a worldwide basis. IT outsourcin[...]

The Russian parliament has passed a law to require internet companies to store the personal data of Russia users inside the country’s borders. Although the bill has passed through the Duma, it still needs to be pass in the Federation Council of Russia and President Vladimir Putin before it comes into effect. If put into law, all internet companies operating in Russia will be required to s[...]

In March, after attending HP’s annual analyst event in Boston, we wrote a short piece on how HP Enterprise Services is building its “Advise, Transform, Manage” Positioning (see: http://bit.ly/U0oJ8p) Last week, we attended the HP EMEA analyst event in London, where the key theme was the “One HP” approach to market. NelsonHall’s interest is HP’s Ent[...]

After a quiet year of acquisitions in the contact center outsourcing market in 2013, 2014 activity so far has been more inline with what we’ve come to expect of this market in terms of the volume of acquisitions. Most of the acquisitions so far this year have been to enhance, and in some case establish, geographic presence, for example: Webhel[...]

NelsonHall’s annual HRO Market Forecast, 2014-2018, provides a forecast for the global HR BPO market by service line and geography. It includes:  The HR BPO market size for 2013 and the forecast through 2014 to 2018 The HR BPO market size and forecast for North America, specifically covering the U.S. and Canada; EMEA including U.K., France, Germany, Italy, Nordics &[...]

NelsonHall has just published its latest market assessment of Multi-Process HR Outsourcing. The report analyzes the characteristics of the market and identifies four major segments and looks at activity within each of these segments. One of these segments is multi-country standardization segment, where we have seen a big shift in the proportion of global contracts and regional contracts a[...]

The banking crisis clearly meant that the banking industry needed to change. However, those changes have not yet been realized. Prior to the crisis banks were focused on selling new products (e.g., structured products) into mature markets. From 2008 to 2013, banks shifted focus to focus on emerging markets to sell existing services to emerging middle classes. Since 2013, banks have been consolidat[...]

Provision of analytics is important for Learning BPO (LBPO) providers to be able to demonstrate ROI for clients. The late Don Kirkpatrick, who passed away in May at age 90, developed back in the 1950s four levels to evaluate learning effectiveness. Taking a look at these levels, starting with the lowest: Reaction; evaluation about how the participants felt about[...]

NelsonHall recently spoke with management from Virtual Operations, a privately held Dallas, TX-based provider of consulting, implementation and technical services around robotic process automation (RPA).  The company was founded in 2012 by Dan Hudson and Matt Smith who had previously worked together at OnTarget Partners and other ventures.  We asked them about the growth that they a[...]

Per NelsonHall’s HR Outsourcing Confidence Index (HROCI), around one third of HRO contracts signed in Q4 2013 were for services in multiple countries. There were multi-country deal signings across all HRO service lines, the highest number being in RPO and payroll. RPO In 2013 nearly one third of all deal signings were multi-country, up from a quarter in 2010. M[...]

NelsonHall recently attended Call Center Week in Las Vegas. 2014 was the 15th year of this event, which had 1,800 attendees and 120 booths. It’s hot in Las Vegas in June - and the event covered some hot topics! Using Analytics to Improve CSAT I participated in two well attended sessions on analytics, which took different approaches to the same topic. The session sponsored [...]