What’s Next for TriNet, its Clients and its Prospects?

By now, we’ve all read about what the behemoth created by TriNet’s acquisition of Gevity will bring to existing small business clients and potential HRO buyers:

•  Better service center (East and West Coast U.S.) and onsite personnel coverage

•  100 different healthcare plans from which clients can choose

•  Focus on a wider range of specific industries including blue/gray collar sectors such as retail and hospitality, as well as white collar sectors including professional and financial services

•  Improved risk management services

•  An Oracle/PeopleSoft-powered HRIS platform and HR Passport, a web-based self-service portal for managers and employees

All well and good. So what’s next for TriNet, its clients and its prospects?

Although the mega PEO/HRO provider for small businesses is only a week old, following are my thoughts on relatively near-term happenings:

Expanding reach and offerings to smaller mid-market – read, not just small – companies in its combined target industries: Yes, TriNet has asserted its focus on the small business market. But its one-to-many model – and Gevity’s heritage focus on the mid-market – can easily extrapolate to medium-sized companies of up to 1000+ employees in its target industries. In fact, in its acquisition completion press release, Burton M. Goldfield, President and CEO of TriNet, is quoted as saying, “Our vision is to capitalize on the deep expertise from both companies in order to equip clients with industry-specific services and solutions, breaking with the ‘one size fits all’ approach that companies have typically been forced to endure from HR outsourcing providers.”

More acquisitions – This is TriNet’s sixth acquisition since 2002, mostly of other localized/regionalized PEOs. Given its history, and that one of the driving forces behind its acquisition of Gevity was geography, it’s very reasonable to assume the company will acquire other small PEOs to further expand its service coverage.

Technology enhancements…made in India – There’s little question that TriNet will continue to deliver HR services to its clients from the United States. Offshore delivery won’t play, and doesn’t need to, for its target clients. But that its venture capital backer General Atlantic has in its portfolio a wealth of India-based IT services and BPO firms, we can easily anticipate that future standardized technological enhancements to satisfy the needs of the SMB market will come from non-U.S. sister firms.

What do you think?

Until next time, happy sourcing!

Helen Neale, Research Director, Human Resources Outsourcing, NelsonHall

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2 Comments on “What’s Next for TriNet, its Clients and its Prospects?”

  1. joe vales Says:

    Helen..

    Thanks for insights on the Gevity acquisition by TriNet.

    Let me add to your comment about General Atlantic With General Atlantic, TriNet has the financial muscle and market knowledge to innovate and buy market share. Just as important, the partners at General Atlantic work very closely with their portfolio companies and are long term investors. They know so well the HRO market based on their successful investments in ProBusiness and Exult. Thru TriNet, they bought Gevity at a very low price and will one day generate a very high return for their investors.


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