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[...]

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[...]

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[...]

Promises of rooftop gardens and new user experience from ADP’s trendy NYC warehouse: From a hip warehouse full of juice bars, fun areas to work and original red brick walls, the theme of the 2014 ADP Analyst Event was ADP is “All in on HCM”, reinforcing its commitment to HCM following the Dealer Services spin off.  The event, newly opened Research Lab in Chelsea, NYC[...]

Companies today are increasingly looking to Wellness programs as a means of meeting their business objectives. It’s a two sided-approach and benefit. First, the cost of employees missing work due to sickness, diseases and stress-related illnesses can be significant in terms of healthcare costs and productivity. Per Towers Watson, employer healthcare costs are expected to increase 4.4% [...]

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.&[...]

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[...]

Following a flurry of benefits administration activity in H2 2013 that focused on contract awards for corporate health exchanges for active employees, the first quarter of the year seemed to be just as busy for providers in both the U.S. and U.K. This is a strong stark contrast to H2 2013, when much of the activity in Q1 was focused on DC administration. Private sector activity outpaced pu[...]

Last week, NelsonHall attended Ceridian’s analyst event. Ceridian 2013 revenue excluding Comdata was ~$950m. Its cloud business generated ~$100m in revenue and is growing at ~35%.  Much of the focus of the event was on its Dayforce cloud HCM platform which provides: Payroll, including tax Benefits, e.g. annual enrollment Recruitment / talent, the most recent [...]

2013 proved to be an exciting year in benefits administration.  In the U.S., much of the focus was on corporate health exchanges for active employees while the U.K. was focused on auto-enrollment (AE).  Specific highlights of the year in the U.S. included: Aon Hewitt: added 15 clients to its corporate health exchange (total number of clients is at 18) Mercer: added 52 clients [...]

NelsonHall’s HR team has undertaken a review of our programs and in response to customer feedback and market requests and will be launching a Managed Services Program (MSP) in 2014. The MSP program will supplement the already established HR programs: Multi-process HR BPO services. Payroll Services Benefits Administration Recruitment Process Outsourcing Learning BPO. T[...]

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[...]

As 2013 comes to a close, it’s time to recap on what happened in HR BPO this year. It has been a good year for HRO with overall contract activity up ~37% on 2012.  But, it was a year of two halves: H1 activity was down 16% y/y, but the market really picked up in H2, when announced contract activity nearly doubled as benefits administration vendors announced health exchange contract s[...]