As earnings are released, it’s a good time to reflect on HR outsourcing trends by key service line. Here’s a brief round-up of market activity across payroll, RPO, and learning services in H1 2016. Payroll Payroll activity has been bustling in Europe YTD, with a strong emphasis on ramping up capabilities. SD Worx made two acquisitions to accelerate its growth across[...]

The cloud-based HR services offering contains many of the same services that traditional HR BPO/multi-process HRO (MPHRO) suppliers have provided, plus a few new components. Services can be divided into the three broad categories of pre-deployment, deployment, and post-deployment services: Pre-deployment services include HR cloud consulting, focusing largely on HR SaaS technology selection a[...]

For years, Aon Hewitt has been focused on strengthening its HR outsourcing capabilities around its principal offerings of benefits administration, HR BPO/multi-process HR outsourcing (MPHRO), and RPO services. However, over the last year, Aon Hewitt has sold several businesses as part of a larger restructuring plan: Payroll in Asia Pacific was acquired by Everstone Capital and is now operati[...]

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[...]

Last week, Northgate Information Solutions, the holding company of NGA HR, announced that it has reached agreement with its shareholders and lenders regarding a new capital structure to reduce its debt and enable a faster path to growth. The new structure includes full debt-for-equity swap of the subordinated debt, and full pay down of existing senior debt (using the proceeds from the Northgate Pu[...]

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[...]

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[...]

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[...]

In addition to providing assessments of MPHRO vendor capability, the NelsonHall Evaluation and Assessment Tool (NEAT) for MPHRO, published July 29, 2014, http://bit.ly/1uDunOq supports an analysis of customer satisfaction within MPHRO by service line. Based on client interviews conducted globally covering vendors providing MPHRO across all regions, the analysis covers satisfaction within the [...]

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[...]

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[...]

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 theme of last week’s IBM Connect Conference was Energizing Life’s Work. There was also a concurrent Kenexa World Conference which joined the IBM Connect general sessions. When IBM acquired Kenexa for $1.3bn in December 2012 (with Kenexa integrated into IBM’s Software Group and operationally aligned to IBM GPS), much was written at the time of how this would strengthen IBM&[...]

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[...]