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IBM - Next Generation Recruitment Process Outsourcing

Vendor Analysis

by Nikki Edwards

published on Apr 11, 2018

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Report Overview:

This NelsonHall assessment analyzes IBM TAO's offerings and capabilities in  next generation  recruitment process outsourcing.

Who is this Report for:

NelsonHall’s Next Generation Recruitment Process Outsourcing vendor assessment for IBM TAO is a comprehensive assessment of IBM TAO’s recruitment process outsourcing (RPO) offering and capabilities, designed for: 

  • Sourcing managers investigating sourcing developments within RPO 
  • HR decision makers exploring the benefits and inhibitors of RPO as evidenced from the clients and vendor capability 
  • Vendor marketing, sales and business managers developing strategies to identify developments and target opportunities within managed service programs 
  • Financial analysts and investors specializing in, or covering the HR outsourcing industry and suppliers. 

Scope of this Report:

The report provides a comprehensive and objective analysis of IBM TAO’s recruitment process outsourcing offering, capabilities, and market and financial strength, including: 

  • Identification of the company’s strategy, emphasis, and new developments in both its service and technology  
  • Analysis of the company’s strengths, challenges, and outlook 
  • Revenue  
  • Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts 
  • Analysis of the company’s key offerings (service model and service components) 
  • Analysis of the company’s delivery capability (including the location, size and scale of delivery operations; and delivery via technology). 

 

Key Findings & Highlights:

IBM's RPO business is part of its Talent Acquisition Optimization (TAO) segment, which is part of its Talent and Engagement Practice (T&E), which sits within IBM's Global Business Services (GBS) segment. IBM acquired Kenexa (founded in 1987) in December 2012 which brought screening, assessments, testing, ATS technology and talent consulting to IBM. 

Established RPOs include energy, life sciences, manufacturing and technology. IBM TAO offers end-to-end (enterprise) RPO, sourcing and screening, hybrid RPO and ad-hoc MSP support. 

IBM's 2017 revenues were ~$79.1bn and its 2017 GBS revenues were $16.4bn. NelsonHall estimates that IBM TAO’s 2017 standalone RPO revenues were ~$134.5m.  

IBM TAO will focus on using agile methodologies to ideate and develop RPO solutions for its clients; introducing more MSP support as part of a blended offering; focusing consulting on cognitive technology, talent analytics, workforce planning, candidate experience and onboarding; reviewing its shared service structure and improving its internal culture; increasing its use of RPA, chatbots and AI/cognitive; and delivering on/developing its technology roadmap. 

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