HRO Insight blog
Please visit NelsonHall's HRO Insight blog for further updates from our analysts daily
Liz is HR Technology and Services Research Director at NelsonHall, with global responsibility for key HR research projects including Cloud-Based HR Transformation, Cloud-Based Benefits Services, HCM Technology, EoR, Global Payroll and The Future of HR, as part of NelsonHall's wider HR Technology & Services practice.
meet & followNikki is a Principal Research Analyst at NelsonHall and a member of the HR Technology & Services practice. Nikki covers HR services research in the areas of Recruitment Process Outsourcing (RPO), Managed Service Programs (MSP), Total Talent, and Learning.
meet & followJeanine is a Principal Research Analyst at NelsonHall and a member of the HR Technology & Services practice. She has global responsibility for key HR areas including employer of record (EOR) and learning platforms.
meet & followDeeAnna is a Principal Research Analyst at NelsonHall and a member of the HR Technology & Services practice. She has global responsibility for key HR areas including HCM technology, workforce management, and health & welfare administration.
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Please visit NelsonHall's HRO Insight blog for further updates from our analysts daily
Overall IBM Group revenues in 2014 declined 6% (-1% in CC and excluding divestitures). However, IBM is in the midst of a major adjustment of its portfolio. In line with this, the company is reporting $25bn in revenues (and 16% revenue growth) in 2014 (out of a total of $92.8bn) from its "strategic imperatives". IBM's acquisition of Softlayer, where it continues to invest strongly,[...]
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[...]
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[...]
ADP is focused on growing its HCM business globally. Much of this growth will be organic. Accordingly, ADP is making investments across HCM including ADP Vantage, which has global record capability, and aiming to help organizations improve their employee engagement and talent management. ADP’s commitment to HCM is clearly evident by its April 10 announcement to spin-off its Dealer Servi[...]
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 Recruitment Process Outsourcing (RPO). The RPO tool is available to NelsonHall clients here and is also available for a limited period free-of-charge to strategic sourcing managers. The tool covers a number of RPO busin[...]
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[...]
There are clear positives to this quarter’s results from Infosys, and its share price certainly picked up (is now the highest since March 2012), though it continues to look to address a number of challenges, some of which are company-specific issues. This is the third quarter of improved topline growth. Management has raised revenue guidance for full FY 2014 to growth of 11.5-12% (up from[...]
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[...]
Recruitment Process Outsourcing Last week, I zeroed in on specific market activity within the payroll, learning and RPO service lines. Today, I am taking a closer look at H1 2013 activity in benefits administration and MPHRO and considering what we should expect in H2 2013 based on NelsonHall’s recent HRO Confidence Index. Benefits Administration Contract signings aside, t[...]
Employer branding has become an integral component of an effective talent strategy. It’s synonymous with a company’s reputation as an employer, portraying the image of what the company is like to work for. The purpose of properly conveying and clearly communicating an employer’s brand is essential to attract, engage, develop, and retain the best talent for your organization. B[...]
When Recruitment Process Outsourcing (RPO) became more widely adopted a decade or so ago, the primary focus was on the following functions: Sourcing Recruiting Selection & Assessment Administration Onboarding. During the last few years vendors have added additional capability focused on helping clients improve their talent management capability, including: Talent strat[...]
On October 14, the Xchanging board recommended a final cash offer by Capita of 160p per share. The offer, valuing Xchanging at ~£412m, represents a premium of ~44% to the closing price on October 2, 2015 (the last business day before the start of the offer period), 52% to the prior three-month average price and 64% to the one-month average price. Capita states it believes the acquis[...]
The theme of KellyOCG’s recent analyst day was ‘Talent Supply Chain Management’, which they demonstrated using their latest online analytics portal, ‘Talent Supply Chain Analytics’ (TSC Analytics). The portal has the ability to propose the optimal number of suppliers for a job category, based on supply chain modelling that has identified correlations between the nu[...]
Employee Value Proposition (EVP) is about more than creating a nice-looking career page with exciting reasons why candidates should join a company. It is also about empowering recruiters to use their corporate brand flexibly for individual candidate situations. This is well known to recruitment processing outsourcing (RPO) companies. However, an effective EVP can go even further. In a candidate[...]
The Twittersphere has been buzzing recently with opinions on the compliance of global Human Capital Management (HCM) technologies, with commentators debating the relative merits of different approaches, and discussing key topics such as localization gaps and the breadth of language support. Vendors are making moves to improve their HCM delivery to address these and other issues, and in 2015 the[...]
Accenture Federal Services (AFS) is to acquire Agilex Technologies, a privately-held provider of digital solutions for the U.S. federal government based in Chantilly, VA. Terms of the transaction were not disclosed. The acquisition will enhance Accenture’s digital capabilities in analytics, cloud and mobility for federal agencies. It also will add agile delivery expertise. Agilex br[...]
Randstad Sourceright Analyst Day 2014: RPO In High Gear Last week Randstad Sourceright held its first analyst event. Services covered included MSP, independent contractor solutions, technology, RPO, employer branding, veterans hiring initiatives, and career transition services. My focus here is primarily on Randstad Sourceright's RPO activity. RPO in High Gear In 2014 YTD Rand[...]
As reported in NelsonHall’s 2014 RPO market analysis, with a global shortage of talent predicted for the foreseeable future, RPO buyers will continue to seek specialists to attract candidates through the use of social networks and to create a pipeline of passive candidates (i.e. talent communities) to improve speed, quality of hire and retention of talent. Nine out of 10 companies in the [...]
At last week’s 2014 HR Technology conference I met with several of the RPO providers. Discussions included service offerings, latest trends, new business and growth. My meetings confirmed findings reported in NelsonHall’s Q1 2014 RPO market analysis that RPO growth would be mid-teens in 2014. RPO is thriving, with vendors reporting growth ranging from the low teens to 30%. And one[...]
Hiring the best talent available, and being able to do this in a timely manner when they are needed, is a top priority of the HR function. For large enterprises, the optimal way to do this is to have candidates available in advance of the job requisition who are part of a talent pool that is already engaged and familiar with the hiring organization’s culture and values, and to make it easy t[...]
TrueBlue announced on Monday it is to acquire U.S. based RPO and MSP provider SeatonCorp. TrueBlue is a specialist staffing organization that supports staffing and also provides onsite management services which will complement the RPO, MSP services of SeatonCorp. The SeatonCorp business beng acquired includes its: RPO businesses: PeopleScout (U.S based)&nb[...]
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&[...]
Capita has announced the retirement of its CEO, Paul Pindar, with effect from February 28, 2014. Pindar will step down after 26 years with the company. Andy Parker, Capita's current Deputy Chief Executive and Joint COO, will succeed Paul as Chief Executive from March 1, 2014. Dawn Marriott-Sims, currently Executive Director of Capita's Workplace Services division, will be appointed t[...]