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Nov 30, 2015, by NelsonHall Analyst
As the year winds down, it’s a good time to reflect on the significant activities in the HRO market in 2015 and consider the likely shape of things to come in 2016.
Overall, HRO contract activity is up ~11% y/y in 2015. Renewals and contract extensions account for 25% of that activity, vendor changes ~20%, and new deals 55%. Regional and global multi-country contracts continued[...]
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Nov 03, 2015, by NelsonHall Analyst
The global learning BPO (LBPO) market was worth $2.9bn in 2014 and NelsonHall forecasts it to grow at 6.7% per annum, reaching $4bn by 2019. But what is the current pattern and nature of LBPO deals, and how are things changing?
Recent LBPO activity has been largely from Europe, a trend which began to pick up in 2014. Activity is widespread across Europe, including the U.K., Germany, Nordics, De[...]
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Sep 29, 2015, by NelsonHall Analyst
ADP recently held its seventh annual industry analyst event in NYC at its Innovation Lab in Chelsea, providing a current business update, news of recent developments, and insights on what’s to come.
Overall, there has been growth across ADP’s cloud-based platforms, including RUN, Workforce Now, Vantage HCM, and GlobalView HCM, with the total number of clients reaching ~5[...]
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Sep 21, 2015, by NelsonHall Analyst
Though we’re only just into fall, the nature of activity in the Benefits Administration market in 2015 provides important pointers to key strategic focus areas in 2016.
In the U.S., the emphasis will continue around Health & Welfare (H&W) services, stemming from the Affordable Care Act (ACA). In 2015, tier two H&W specialists such as Businessolver and TASC launched ACA reporti[...]
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Aug 07, 2015, by NelsonHall Analyst
Over the last few years, ADP has ramped up its capabilities beyond payroll to focus on other areas of HR, including benefits administration and RPO, making it well-equipped to handle the main HR functions. This is important because many organizations, from SMEs to large companies, are looking to minimize the number of suppliers they deal with – though only if quality of service is not c[...]
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Aug 04, 2015, by NelsonHall Analyst
The recent merger of Willis Group and Towers Watson has created a global advisory and brokerage firm valued at $18bn. The deal was met with raised eyebrows by several financial analysts, who argued that Towers Watson shareholders were being short-changed in a deal with significant strategic risks, all for the benefit of revenue synergies and the tax savings that will result from moving its tax hea[...]
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Jun 30, 2015, by NelsonHall Analyst
Not long ago the concept of blended learning typically meant formal instructor-led training combined with self-paced e-learning. Now it includes both formal and informal methods delivered in a variety of modes.
The widespread use of mobile technologies cannot be ignored, and now the trend is for on-demand and just-in-time (JIT) learning. Microlearning is also increasing in importance: while mil[...]
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May 11, 2015, by NelsonHall Analyst
It seems like yesterday that the concept of a private health insurance exchange was novel: it’s hard to believe that active exchanges have been available from benefits consultancies for three years, and that retiree exchanges are nearly 11 years old.
Here’s a quick update and review of how the private exchange landscape has changed in this short time.
Active exchanges are mu[...]
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Apr 30, 2015, by NelsonHall Analyst
Financial planning for retirement readiness is a big concern for many individuals, and the stress is often magnified the closer one gets to retirement.
For years, organizations and DC administration providers have been honing different approaches to address this. One of the biggest challenges in establishing a model that works stems from diversity within the workforce. Earlier approac[...]
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Mar 31, 2015, by NelsonHall Analyst
Demand for learning services has been the lowest of all the HR outsourcing services over the last few years. But while the market has been in a lull, several suppliers have taken the time to revamp their learning services businesses in one of two ways.
The first approach is about honing learning offerings around one specific learning function. Sometimes this is about refining one func[...]
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Feb 19, 2015, by NelsonHall Analyst
Barely two months into the year and there has been lots of activity across the benefits administration market, including new contracts, contract expansions, and M&A activity.
Contracts have come out of the U.S. and Europe, including the U.K. and the Netherlands. U.S. activity has come from both the private and public sectors, with deals ranging from as few as 800 employees to mor[...]
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Feb 05, 2015, by NelsonHall Analyst
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 [...]
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Oct 08, 2014, by NelsonHall Analyst
Concerns have been expressed about the future of the traditional benefits administration market with the advent of private health insurance exchanges: will the market move from a B2B model to a B2C where benefits administration as we know it will disappear?
Rest assured, while the benefits administration market will undergo some transformation, it will not disappear entirely for the follo[...]
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Sep 22, 2014, by NelsonHall Analyst
Last week, ADP hosted its 6th annual analyst day at its new Innovation Lab in NYC. The space, partly still under construction and featuring a rooftop garden, provides a very collaborative work environment.
A current focus at the Lab is creating a new user experience for HR processes. The new user experience for pre-onboarding is live in Vantage HCM, and the benefits en[...]
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Sep 15, 2014, by NelsonHall Analyst
Last week, Mercer released preliminary results from its annual national survey of Employer-Sponsored Health Plans 2014, which discussed health benefit cost expectations for 2015. Some of the key findings of the survey included:
Health benefit costs per employee will increase ~3.9% on average in 2015 or ~5.9% if employers make no changes to their health plans for 2015
Around 32% of em[...]
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Aug 14, 2014, by NelsonHall Analyst
Overall H1 HRO M&A activity is up year-over-year, and acquisition activity has increased in nearly all service lines except learning.
While learning M&A activity was high in H1 2013, this year, M&A activity in H1 2014 was strongest in the benefits administration market, and it’s occurring in both the U.S. and U.K. as vendors strengthen their DC contribution capability.&[...]
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Aug 01, 2014, by NelsonHall Analyst
NelsonHall, the leading global BPO and IT outsourcing analyst firm, has today launched a new tool to assist strategic sourcing managers in assessing vendor capability in multi-process HR outsourcing (MPHRO).
The MPHRO tool is available to NelsonHall clients and is also available for a limited period free-of-charge to strategic sourcing managers.
In addition to a comparison of overall ve[...]
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Jul 18, 2014, by NelsonHall Analyst
I recently attended Ceridian’s annual client event in Las Vegas with the assumption that the event would revolve around Dayforce. And it did, but I was also pleasantly surprised to learn how Ceridian is tying Dayforce and LifeWorks, Ceridian’s EAP and wellness offering, together.
Over the years, I’ve watched Ceridian shift from a mostly services-oriented organi[...]
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Jul 10, 2014, by NelsonHall Analyst
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[...]
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Jul 02, 2014, by NelsonHall Analyst
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[...]