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IBM - Next Generation Payroll Services

Vendor Analysis

by Pete Tiliakos

published on Oct 30, 2017

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Report Overview:

This NelsonHall vendor assessment analyzes IBM's  offerings and capabilities in Next Generation Payroll Services.

Who is this Report for:

NelsonHall’s Payroll Services vendor assessment for IBM is a comprehensive assessment of IBM’s payroll services offerings and capabilities designed for: 

  • Sourcing managers monitoring the capabilities of existing suppliers of payroll outsourcing and identifying vendor suitability for payroll services RFPs 
  • Vendor marketing, sales, and business managers looking to benchmark themselves against their peers 
  • Financial analysts and investors specializing in the support services sector 
  • HR and payroll decision makers. 

Scope of this Report:

The report provides a comprehensive and objective analysis of IBM’s  next generation payroll services offering, capabilities, and market and financial strength, including:  

  • Identification of the company’s strategy, emphasis, and new developments  
  • Analysis of the company’s strengths, weaknesses, and outlook  
  • Revenue estimates  
  • 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 offerings and key service components  
  • Analysis of the company’s delivery organization including the location of delivery locations.  

Key Findings & Highlights:

IBM Cognitive Process Services (IBM), headquartered in Armonk, New York, provides a range of back-office and industry-specific outsourcing services through its Global Business Services (GBS) business segment.   

GBS’ Talent and Engagement (T&E) segment includes the following offerings:  

  • HR transformation and optimization: helps develop and sustain a highperforming HR function to drive enhanced organizational outcomes
  • Talent acquisition and optimization: solutions and services to target, recruit, and hire talent; compensate fairly; and manage performance  
  • Talent development and optimization: strategy and implementation of continuous personalized learning
  • Talent analytics and cognitive HR: analytic insights and personalized employee experiences that support transformative solutions across the HR lifecycle  
  • Cloud HCM: supports the transformation of the employee and manager experience as organizations shift to cloud based HR platforms  
  • Talent experience and engagement: designs and delivers engaging employee experiences to enhance business results and the client experience  
  • Digital change management: contemporary methodologies and tools backed by behavioral science and analytics to help clients shape, plan, and execute business change initiatives.  

IBM offers a fully managed payroll outsourcing model, delivering ~8.1m payslips annually to ~620k client employees globally.  

Payroll services are offered as standalone or as part of broader multiprocess HR services; ~25% of its payroll clients are standalone, with ~75% being delivered with at least one other HR service, most commonly contact center and workforce management.

Table of contents:

Table of contents:

  • Background
  • Revenue Summary
  • Key Offerings
  • Delivery Capability and Partnerships
  • Target Markets
  • Strategy
  • Strengths and Challenges
  • Strengths
  • Challenges
  • Outlook

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