Posted tagged ‘bpo’
May 3, 2013

Linda Merritt, HRO Research Analyst, NelsonHall
SaaS systems for HR administration and payroll have opened up the small business market to the benefits of web-based HR systems with self-service and easier implementations. The rapid uptake by clients is testimony that a ‘sweet spot’ has been reached in cost, ease and value.
MoorepayHR
I followed up with Anne Fitzpatrick, Moorepay managing director, for an update on how MoorepayHR, a cloud-based SaaS payroll and HR administration platform with BPO services, is doing one year after its launch in the U.K. small business market.
Moorepay, a NorthgateArinso (NGA) subsidiary, is already “large” in the U.K. small business market with >10,000 clients. However, past success does not guarantee future success. The company saw the need for an integrated HR and payroll platform and wanted to achieve this in its own way by combining new technology with its existing BPO managed payroll and HR services, including on-hand subject-matter experts for guidance on employee issues, into a business process as a service (BPaaS) service.
At first there was some concern if the market was ready for a SaaS multitenant cloud service. Moorepay quickly found that buyers understand the cloud based on their own experiences as consumers and were actually eager for the new service. By the end of April, MoorepayHR had signed its 1,000th customer, and this week the entire company is holding a company-wide celebration!
The client base is 80% new and 20% from existing clients.57% of clients add on payroll, and even more select one or more of the BPO options, led by compliance support for employment law and health and safety advisory.
Moorepay will be adding more offerings to the system, including a newly-released ‘lite’ version. Next for the company is the rolling-out of an advanced version that adds functionality for recruiting, performance management and learning. Targeted at businesses with up to 500 employees, MoorepayHR will be expanded to up to 1,000 employees in the near future.
RUN Powered by ADP
ADP first introduced its RUN system nationally in the U.S. in 2010 for the very small market (1-49 employees). More HR features and payroll functionality have been added to the SaaS cloud-based mobile platform on a regular basis. In addition to ease-of-use, RUN offers a 24×7 help desk with certified HR professionals and an online HR library. RUN added its 200,000th customer in April 2013.
Two Vendors, One Success Story
Both Moorepay and ADP understands that clients of any size have similar needs. As Anish Rajparia, president of ADP’s small business services division, commented: “Small business owners demand flexible tools and resources tailored for them to help manage the risks associated with running their business.”
There are already a variety of options in the market for the small business owner and I am sure we will see many more. One size never fits all, and I am pleased to see that this class of buyer now has HRO choice.
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Categories: HR, HR Administration, HR BPaaS, HR BPO, hr outsourcing, hr outsourcing research, HR SaaS, HR shared Services, HR Systems, HR Technology, hr tools, HRO Growth, HRO providers, hro research, HRO Service Provider, HRO Services, Moorepay, MoorepayHR, Multi-Country Payroll, Multi-Process HR Outsourcing, offshore outsourcing providers, offshore providers, outsourcing, outsourcing research, payroll outsourcing, SaaS
Tags: ADP, bpo, BPO managed payroll, Business, Cloud computing, HR administration, nelsonhall, NorthgateArinso, payroll, payroll outsourcing, SaaS payroll, self-service, software as a service, web-based HR
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April 26, 2013

Linda Merritt, HRO Research Analyst, NelsonHall
There is so much in my colleague Gary Bragar’s NelsonHall Targeting Payroll BPO market analysis that I will cover a few more items this week. The payroll market is divided into three parts: payroll software services; service bureau payroll (also called managed payroll, where the vendor manages payroll production and the client manages data input and employee help desk services); and payroll business process outsourcing (where the end-to-end payroll process is outsourced, including tier 1 and tier 2 employee help desk support).
Payroll BPO market share is growing
Payroll BPO is what NelsonHall follows most of all, and it is a growing part of the overall payroll market. Even as SaaS payroll products become more ubiquitous, many clients will still want support for the whole process. We can see some of the reasons why in the changing pattern of client requirements. As I covered in the first Targeting Payroll blog, cost remains the number one priority. However, other needs have increased in importance over time:
- Standardization of centralization of processes and technology: Instead of defending customization, now buyers are demanding standardization to increase efficiency and reduce costs from maintaining disparate systems
- Compliance/risk management: Compliance with ever-more complex and changing regulations and work rules needs the time and attention of fulltime experts. For example, in Europe the complexity of regulations combined with employee populations spread over multiple countries adds to the challenges of compliance
- Better employee experience: Users want access that is easier and simpler, including 24×7 access to data, self-service, and mobile. Payroll self-service is widely available and has become table stakes. The vendors that deliver the most useful mobile applications, the fastest and with the greatest security, will create valuable market differentiation.
- Payroll subject matter expertise: Clients expect improved quality of payroll with augmented accuracy, which can lower overpayment and off-cycle payroll runs.
Payroll Cost #1 with a new spin
While cost remains the number-one client requirement, there is a new aspect and it is the same one NelsonHall is seeing in other HRO areas; balancing cost with value. Value for price is especially understood by second- and third-generation buyers who indicate their willingness to change vendors to get it!
Payroll Analytics
It has been my view for some time that the focus on improved payroll processes and systems is driven by more than the need to pay employees timely and accurately. It is also driven by the need to manage the total cost of labor with real-time access to data and analytics for decision-making that leads to improved business performance. Payroll is increasingly being seen as a valuable management strategic tool, and clients will be looking to payroll BPO providers to help them access and develop workforce analytics expertise.
It great to see how dynamic the payroll outsourcing industry has become!
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Categories: Business Process Outsourcing, HR BPO, HR Consulting, hr outsourcing, hr outsourcing research, hro, hro research, market analysis, Multi-Country Payroll, nelsonhall, payroll buyers, payroll outsourcing, payroll trends, Targeting Payroll BPO, Targeting Payroll BPO market analysis
Tags: bpo, Business, business process outsourcing, Gary Bragar, multi-country payroll, nelsonhall, Outsourcing, payroll, payroll benefits, payroll BPO, Payroll BPO vendors, payroll platform, payroll standardization, payroll technology, vendor profiles
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April 18, 2013

Linda Merritt, HRO Research Analyst, NelsonHall
The NelsonHall Targeting Payroll BPO report has recently been released by my colleague, Gary Bragar. Payroll is such a well-accepted mainstay of HR outsourcing that it’s nice to see it still showing steady growth year after year.
Gary regularly produces the payroll market analysis, and profiles leading vendors in this space. Over time you can see how what seems like a basic service has grown, evolved and increased in strategic importance. What has not changed is that buyers are looking for savings by outsourcing payroll. The good news is that payroll BPO delivers: first-time payroll outsourcing can save from 15% to +40% depending on the degree of complexity and variables (like the number of locations, with everything from a single location to more than 100 countries).
The full report includes more on what buyers want from payroll outsourcing and what’s key in vendor selection; including where data needs vary between the mid-market and large market. Here are a few highlights of the report:
Why Outsource Payroll?
Cost saving remains the number-one reason to outsource payroll, and several nuances have been added including:
- Clients want a more variable cost structure and less fixed costs
- Savings now often include not having to refresh client technology (cost avoidance)
- Simplifying payroll after a series of M&As or restructurings reduces cost
- Reduction in payroll losses from ineligible and overpayments.
Centralization and standardization of process and technology has increased in importance, similar to what has been seen in other HRO areas. Where clients used to want customization, many are now seeing the benefits of standardization to improve efficiency, reduce cost, and to increase timely access to accurate payroll data across the enterprise.
With constantly-changing regulations and taxation across multiple jurisdictions, accuracy, compliance and risk management remain core payroll benefits.
Multi-Country Payroll
For MNCs, multi-country payroll remains a sought-after capability. MNCs want one vendor, one contract, and one payroll platform. Also wanted is visibility to aggregated costs and data reporting, in addition to the flexibility and scalability to add or change geographies.
Payroll BPO vendors have responded to the blended needs of clients for cost savings and global coverage by:
- Increasing nearshore and offshore service centers
- Partnering for coverage in some countries
- Offering multiple technology platforms from SaaS to ERPs.
Pricing Pressure
Given the focus on cost reduction, pricing pressure should be no surprise. This is a market with many mature and capable suppliers, which in itself adds competitive pricing pressure and the need for differentiation to focus on value as well as cost.
As an indicator of payroll service provider capabilities to compete, I earlier mentioned the steady year-over-year revenue growth. That growth has been achieved at the same time as the average price per-payslip has fallen significantly over the last three years!
There is so much more in the Targeting Payroll BPO market analysis, look for more highlights in a future blog.
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Categories: Business Process Outsourcing, HR BPO, hr outsourcing, hr outsourcing research, hro, hro research, market analysis, Multi-Country Payroll, nelsonhall, payroll buyers, payroll outsourcing, payroll trends, Targeting Payroll BPO, Targeting Payroll BPO market analysis
Tags: bpo, Business, business process outsourcing, Gary Bragar, multi-country payroll, nelsonhall, Outsourcing, payroll, payroll benefits, payroll BPO, Payroll BPO vendors, payroll platform, payroll standardization, payroll technology, vendor profiles
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October 4, 2012

Linda Merritt, HRO Research Analyst, NelsonHall
Moorepay is a payroll and employment service provider in the U.K. with over 10,000 clients and it is a part of NorthgateArinso (NGA). Earlier this year I blogged about the launch of its new HR and payroll platform service for the small employer market in the U.K. This week, I spoke with Ann Fitzpatrick, Moorepay managing director, for an update.
In a brief recap, MoorepayHR is a cloud-based SaaS and BPO service built on NGA’s Preceda SaaS platform that is customized for the U.K. market and combined with Moorepay’s payroll and HR services such as employment law and health and safety advisory.
Cloud Opens the Small Employer Market
Most major HRO vendors do not attempt to reach the small employer market, which is just what Moorepay serves. Certainly small employers want professional and modern services, but until the rise of streamlined HRO platforms in the cloud, the costs were unaffordable for both clients and vendors. In the U.S., ADP has had such great success with Workforce Now, it launched a larger version called Vantage HCM. Now, employers in the U.K. can have the same level of service as larger companies at very affordable price points.
The Roadmap to Success
There are three levels of service, each with its own pricing openly displayed right on the company’s website. Payroll is available as an option with each of the service levels. Approximately 40% of clients are currently adding payroll. In a bit of a nice surprise, ~80% of customers are choosing the highest level that comes with client services, making it a real BPO offering.
A 1Q 2013 launch is planned for the highest level of service, HR Advanced, which will add modules for talent management, recruiting, and remuneration. That will make the service more valuable for employers in the 100-400 range with more complex HR needs.
With its large base of payroll clients, Moorepay will later market the new system and services to its existing clients to allow conversion to the new system and added services.
Finally, Moorepay is receiving good support from the NGA Preceda team and they will work together to ensure the technology development roadmap is completed in the near future, including mobile and tablet access.
The Proof is in the Pudding
The new system has just reached its three-hundredth customer and all of these customers are new to Moorepay. The company now has a solid base of wins and users to move forward with its multi-stage approach to growth.
The small employer market is clearly hungry for such a service. Even before launch, there were hundreds of inquiries, and the number of inbound leads has rapidly increased. You know something is going well when customers are lining up at your door!
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Categories: Cloud, HR Systems, HR Tech, HR Technology, HRO Platform, Moorepay, MoorepayHR, NGA, NorthgateArinso, payroll outsourcing, U.K.
Tags: ADP, ADP Vantage HCM, ADP Workforce Now, Ann Fitzpatrick, bpo, cloud, complex HR, employment, employment law, health and safety advisory, HR Advanced, HR platform, HRO vendors, mobile, Moorepay, MoorepayHR, NGA, NorthgateArinso, payroll, payroll platform, Preceda, recruiting, remuneration, SaaS, small employer, small market, tablet, talent management, UK
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September 18, 2012

Linda Merritt, HRO Research Analyst, NelsonHall
It’s common for major HRO announcements to be followed by a conference call, and sometimes one-on-one briefings are also offered for analysts as in the case of the IBM and Kenexa deal. Naturally, the NelsonHall HRO team including myself, Gary Bragar, and Amy Gurchensky took advantage of both opportunities.
IBM’s Own View
The initial announcement was largely from the perspective of the IBM Social Business group that will add Kenexa’s HCM capabilities to its combination of social media, content management, and analytics. IBM believes that this creates value through the application of social technology to front office processes and generates ROI by creating social networks of expertise that leverage analytic insights to improve business processes. In sum, a “Smarter Workforce.”
It is the Whole Elephant…
In Part I, I compared the various views of the IBM and Kenexa news to the analogy of the blind men and the elephant. The answer is that all of the following interpretations are rationales of the deal:
- Builds upon IBM’s social media, analytics, and professional services including BPO
- Brings valuable software, HRO expertise, as well as talent management capabilities
- Increases competition and cross-selling to both IBM’s and Kenexa’s base of Fortune 500 customers
- Delivers value to C-suite executives, HR executives, and the whole value chain of management and employees.
…and Much More
The IBM Global Process Service’s HRO team was involved from the start and will be deeply involved throughout the integration process. RPO services will be combined creating an even bigger global footprint with new service centers including three in the U.S. Kenexa’s learning platform will be reverse engineered to support IBM’s learning services. There are also other parts of Kenexa that can be kept or spun off such as compensation services, behavioral sciences surveys and assessments, and middle market customers.
Kenexa will be a wholly-owned subsidiary for the first year to allow time to determine the best options for unleashing the full value of the deal. Kenexa brings innovative and collaborative intellectual capabilities and a portion of the value is greater than the “stuff” that can be divided up. Even with Kenexa’s leadership intact, the decisions will be many, with lots of players due to the matrix nature of the services and opportunities adding to the normal M&A complexities.
IBM’s Smart Workforce incorporates the concept of the boundary-less enterprise that works across the “whitespace” between processes and organizational silos. IBM wants to make human capital management an integral part of business operations by enabling people to unleash their talent when, where, and how it is most needed to create measureable value.
We each see the world through our own lens of experience and expectations, and sometimes the truly new and innovative “elephant” is harder to see. IBM and Kenexa can create the truly new and we should all hope they do. HCM, HR, HRO, HR tech, IT, social media, and more will have to raise their game to benefit from the new technology, services, and consulting opportunities. And that is a good thing!
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Categories: Acquisitions, hr outsourcing, hro, IBM, Kenexa
Tags: Analytics, behavioral sciences surveys and assessments, bpo, C-suite executives, compensation services, Consulting, content management, cross-selling, Fortune 500 customers, front office processes, global footprint, HCM, HR, HR executives, HR Tech, hro, HRO expertise, human capital management, IBM, IBM Global Process Service, IBM Social Business, IBM’s Smart Workforce, IT, Kenexa, Kenexa learning platform, learning services, nelsonhall, rpo, smarter workforce, social media, social networks, social technology, talent management
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September 13, 2012

Linda Merritt, HRO Research Analyst, NelsonHall
I have not seen such a range of varied opinions from members of the HRO and HR tech communities as those about IBM’s acquisition of Kenexa. The commentary showed that many were taken a bit by surprise and weren’t sure how to analyze the news that IBM was acquiring Kenexa for $1.3bn.
IBM Bought Kenexa?
The surprise was not the purchase of Kenexa, which was foreshadowed by the acquisition of Taleo by Oracle and SuccessFactors by SAP. It was more about the fact that IBM was doing the purchasing.
A few thought that ADP might make such an acquisition since it had already expanded its benefits capabilities with Workscape and SHPS and its RPO capabilities with The RightThing, so wouldn’t talent management make sense? Speculation continued, perhaps Mercer, Ceridian, or even ADP would be the target of an acquisition or merger.
IBM itself was considered likely to continue its acquisitive ways with something more in the talent management / HCM space. Likely targets mentioned included Cornerstone OnDemand, SilkRoad, SumTotal, Saba, with a few suggesting Halogen, Peoplefluent, and others. In short, someone is going to buy something else.
The Meaning of the Deal?
What does this mean we all asked, much like the tale of the Blind Men and the Elephant as was suggested by the leading light Naomi Bloom. Early viewpoints on the acquisition included:
- Continuing IBM’s move into social media and analytics
- Continuing IBM’s move into professional services including strengthening RPO
- Disrupting the HCM market and becoming a talent management player
- Delivering value to the HR executive
- Delivering value to the C-suite and bypassing HR
- Primarily being a HRO deal with some software attached
- Primarily being a software deal with some HRO attached
- Upping competition with SAP, Oracle, Salesforce.com, and even Workday
- Selling into Kenexa’s IBM-like customer base of Fortune 500 clients.
IBM’s news crossed many markets including HRO, HCM, HR tech (software, platform, cloud, etc.), BPO, social media, talent management, and financial and market analysts. Each commenter viewed the same information through the lens of their personal perspective and professional interest, much like the blind men touching different parts of the elephant.
With so many options before it, including IBM’s own announced intentions for the addition of Kenexa, the opportunities are new and exciting. Given the inherent complexities, IBM will face many risks as well. Look for more on The Parable of IBM and Kenexa coming in Part II.
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Categories: hr outsourcing, IBM, Kenexa, recruitment process outsourcing, Talent Management
Tags: ADP, Analytics, benefits, Blind Men and the Elephant, bpo, Ceridian, Cornerstone OnDemand, Halogen, HCM, HR Tech, hro, IBM, Kenexa, Mercer, Naomi Bloom, Oracle, PeopleFluent, rpo, Saba, Salesforce.com, SAP, SHPS, SilkRoad, social media, SuccessFactors, SumTotal, talent management, Taleo, The RightThing, Workday, Workscape
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April 25, 2012
NorthgateArinso (NGA) recently held its annual analyst day in Boston. Chief Executive Mike Ettling reported that NGA’s revenues have increased 6-7% every quarter for the last six quarters and it had brought in over £500m in revenues for 2011. With very good growth under its belt and its built-out set of services, updated core technologies, and global delivery network, NGA is setting new goals to reach its target of $1bn in revenues by 2014.
The company is defining itself as “an HR BPaaS business enabled by technology, process, and domain expertise.” Business-platform-as-a-service is what many are calling business platforms, and since we are talking about HRO, I call it HRO platforms. From that perspective, NGA is already in the BPaaS business of providing bundled business process services and technology solutions.
NGA has ~8,500 personnel in 35 countries with HR technology, outsourcing, and consulting services in over 100 countries. That will not change. It will continue to offer unbundled technology and software services for payroll and HR. It will also continue to offer consulting services for HR systems and implementation of sand integrations, as both are good revenue streams. What is new is that the company is staking out its direction for future growth as an HRO services company, not a technology company.
How does an already good, solid HRO performer accelerate to outpace its competitors? For NGA, the answer is in structure and cadence.
Structure
Management structure is seen in the cascading goals, upcoming changes in organizational structure and alignment of compensation, the use of metrics, and the top-down involvement in selecting and managing key initiatives, investments, and projects. NGA is continuing to standardize its services into a catalog of selections, standardize implementation, and even standardize the offer to delivery process. It is developing an internal system called ScopeHR, which will standardize and automate the production of all key BPO/BPaaS information and documents to make solution selection, selling, pricing, and contracting easier, faster, and more efficient for both the client and NGA.
Cadence
Timing and pacing are also NGA keys in achieving profitable long-term growth. This includes an understanding of how to migrate and grow client scale and scope over time, to step-by-step refine its robust system for services delivery that includes moving to “mega centers of scale” and plans for workforce development to avoid capability gaps. Components of the service delivery value chain are addressed, cross-checked, and backed up. Continuous improvement is also seen in the use of Lean Six Sigma teams, CCMI standards, and an operational excellence framework to increase capability maturity while growing the business and retaining satisfied customers.
There is still a lot of uncertainty in the economy, which may impact NGA’s plans and timing. Given NorthgateArinso’s track record so far, clear goals, and achievement plans, if it adds in a bit of flexibility, the odds are good that it will hit its target.
Linda Merritt, Research Analyst, HRO, NelsonHall
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Categories: Business Process Outsourcing, HR BPaaS, hr outsourcing, hr outsourcing research, hro, HRO Platform, hro research, nelsonhall
Tags: bpo, Cadence, HR, HR BPaaS, hr outsourcing, hro, HRO contracts, HRO Platform, HRO providers, hro research, nelsonhall, NGA, NorthgateArinso, ScopeHR, Structure
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February 20, 2012
As Howie Mandel always says to his guests after they’ve pressed the button and say “Deal!” on the TV show Deal or No Deal—”but was it a good deal?” Time will of course tell, but I do believe Oracle has made a very good deal. As the acquisition was announced just last February 9, I’ll briefly recap what had happened.
Oracle announced an agreement to buy Taleo for $46 per share, an 18% premium over Taleo’s stock price the day before the announcement, equating to $1.9 billion. As Taleo’s board has approved the acquisition, it is now subject to normal regulatory approval and is expected to close by summer. This follows SAP’s announcement on December 3, 2011 to acquire SuccessFactors for $3.4 billion. I had blogged about my take on the acquisition last December 13, 2011, stating that SuccessFactors is a provider of talent management software, but software alone does not get at the core of what makes for effective talent management. First, let me state that I also feel that SAP buying SuccessFactors was a good deal, albeit a steep price, as cloud-based software, including talent management is clearly on the rise and expected to continue to grow. NelsonHall has seen a large increase in the number of cloud SaaS HR services contracts and nearly 15% of HRO contracts in 2011 also included talent management software, often performance management, mostly in the mid-market.
Getting back to Oracle, Taleo provides cloud-based talent management software as well, so this is also a good deal, but how does that make this different? Because Taleo adds recruitment capability that Oracle did not have before. And although SuccessFactors provides recruitment software as does Taleo, Taleo also has an applicant tracking system that according to NelsonHall’s 2011 RPO report is the most widely used recruitment technology and applicant tracking system, utilized by approximately 80% of all RPO vendors for their clients, Oracle’s PeopleSoft had been in sixth place. The RPO report also noted that approximately 45% of all recruitment technology was platform-based. Taleo also has a business edition, popular in the mid-market for clients seeking a more standardized solution, used by vendors including Alexander Mann Solutions and Pinstripe. According to NelsonHall’s HRO forecast, RPO will have the highest growth of all HR services through the forecast period of 2015.
In summary, I think both acquisitions by SAP and Oracle are good; especially as clients continue to focus on talent management and recognize the need to have integrated technology and processes, most importantly supported by leadership that understand this. I’m in the final stages of my learning BPO research interviews and I‘m seeing a clear trend that learning vendors are now also providing talent management software and associated consulting services to their clients along with their learning services. I look forward to aggregating this data that I’ll present at the HRO Today Forum in Washington, DC on May 1st, titled State of the Learning BPO Marketplace, including the Emergence of Social Learning.
Gary Bragar, HRO Research Director, NelsonHall
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Categories: Acquisitions, Business Process Outsourcing, Cloud, hr outsourcing, hr outsourcing research, hro, hro research, performance management, recruitment process outsourcing, RPO providers, SaaS, Talent Management
Tags: acquisition, Alexander Mann Solutions, bpo, cloud, Howie Mandel, HR, hr outsourcing, hro, hro research, nelsonhall, Oracle, PeopleSoft, performance management, Pinstripe, recruitment process outsourcing, rpo, SaaS, SAP, SuccessFactors, talent management, Taleo
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December 16, 2011
As an “emerging market” the Asia Pacific (A/P) has more and more A/P companies become forces in the global marketplace as buyers and as producers – providing growth opportunities for product and service sales for companies headquartered in other regions (usually the West).
Do be aware that the markets for services like HRO already exist and are served by local and regional providers. Hence, new entrants offering unfamiliar brands to A/P buyers will need to assess their competitive value propositions for this vast, yet very localized market with a wide range of languages, price sensitivity, and HRO needs.
One of the largest A/P regional HRO service providers is Talent2, which offers payroll, RPO, traditional recruiting searches, HR administration, learning, talent management, and HR advisory services. Talent2 has services in 31 Asia Pacific and Middle Eastern countries, and its FY 2011 (ended June 30, 2011) revenues were AU$360m, up 26% from FY 2010. In operations since 2003, the company has ~1,700 personnel with offices and service centers spread across the region.
Talent2’s growth over the years had been organic, until 2008 when it added acquisition as a growth strategy and subsequently bought PCA in Japan, a payroll outsourcing and HR consulting provider. In 2010, it acquired Singapore-based Zapper Services with payroll outsourcing and HR administration in 14 A/P countries, adding ~1,000 clients, including multinational corporations (MNCs).
Having an available range of technologies and services is a benefit, especially when there are clients that are expanding their businesses for the first time and need a foundation of basic HR services with a high degree of subject matter expertise. This is also the case for large clients in mature markets looking for top quality and performance at a lower cost. Talent2 has multiple payroll offerings and other services to mix and match to meet the specific needs of clients of many sizes, verticals, with employees in one country to pan-national or global, using a broad range of languages and onshore and nearshore locations.
ADP and NorthgateArinso are two major global players that have been in the region for many years. As the A/P HRO market expands, more players will be looking to gain a foothold. With growth in many areas and services, Talent2 will need to focus its own value proposition and investments to maximize its regional advantages against what will be an even more competitive market. A sign that the company is ready to do just that is the addition of Mary Sue Rogers, one of the leading lights in the HRO community and previously the global leader of HRO for IBM. Rogers recently joined Talent2 as the Global Managing Director of HR services including payroll, HR advisory, and learning services.
No matter where the sun sets, at the end of the day, succeeding in emerging markets is the same as achieving HRO success anywhere: provide high-quality, high-performance subject matter expert services at the optimum price that solves business problems and delivers business results.
Linda Merritt, Research Analyst, HRO, NelsonHall
Interested in reading the latest HRO news from NelsonHall? Subscribe to our newsletter by emailing amy.gurchensky@nelson-hall.com with “HRO Insight” as the subject.
Categories: hr outsourcing, hr outsourcing research, hro, HRO Activity, HRO contracts, HRO providers, lbpo, learning outsourcing, payroll outsourcing, rpo, RPO providers, Talent Management
Tags: A/P, ADP, Asia Pac, Asia-Pacific, bpo, business process outsourcing, HR administration, HR avisory, HR research, hro, IBM, IBM HRO, Japan, learning, Mary Sue Rogers, mature markets, Middle East, NGA, NorthgateArinso, payroll outsourcing, Payroll research, PCA, Talent2, Zapper Services
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November 4, 2011
Although a little late, I wanted to give Infosys kudos for hosting a very informative and engaging BPO Analyst Day in late October, which included presentations by two very satisfied North American based clients.
First, I’d like to highlight the progress Infosys has made:
- From 2006 to 2011, BPO revenue has grown approximately five-fold with the number of clients increasing almost four-fold and global headcount increasing nearly six-fold
- Although I can’t disclose HRO revenues, they are rapidly growing globally, led by North America and followed by Europe
- BPO delivery capability is global from centers across North America, Latin America, South America, Europe, and Asia Pacific.
What particularly impressed me at the event was the lengthy discussion titled “Our people are our biggest assets,” led by managing director and CEO Swami Swaminathan. The topic may sound cliché, but it was from the heart because Infosys truly wants employees to have a career for life that’s achieved by:
- Leadership focus
- Performance-based compensation
- Recognition and reward
- Career planning and development
- Comfort with the working environment
- Pride in being an Infosys employee.
There’s too much good business information to capture in a short blog, but to summarize, Infosys is helping clients build tomorrow’s enterprise by:
- Enabling clients to transform their business
- Moving operations up the value chain, including Centers of Excellence with benchmarking and best practices
- Deploying new engagement models including business process as a service, technology enabled process automation, and cloud-enabled services
- Leveraging technology to create value including dashboards and customer portals.
Client presentations were by a large apparel retailer and a large global telecom. The retailer outsourced both F&A and HR. HRO services included platform-based BPO with PeopleSoft 9.0 and modules for core HR including self-service; benefits including annual enrollment; time and attendance; payroll; and components of the HR helpdesk. Its reasons for choosing Infosys included:
- Access to technology and tools to transform
- Quality of resources to support the account and its ability to work with the client to achieve its goal
- Cultural fit and reputation.
The telecom client outsourced to transform, leverage best in class processes, people and technology, and augment its sourcing group with new talent. F&A outsourcing included source to pay.
Concluding the day and joined by clients at the larger colloquium were two successful panel discussions. The first was titled “Sustaining complex change” and included the buy-side from Montreal, Charming Shoppes Inc., and Cisco. I had the pleasure of facilitating the second discussion that was titled “What is the defining role of HR in shaping tomorrow’s business: Globalization, convergence, social media, and talent management. This panel included the buy-side from Charming Shoppes and Transfield Services.
In all, it was a very impressive day to round out numerous analyst events I attended in 2011, and this one will be memorable!
Gary Bragar, HRO Research Director, NelsonHall
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Categories: benefits administration, Business Process Outsourcing, Core HR, HR Helpdesk, hr outsourcing, hro, nelsonhall, payroll outsourcing, Platform-based BPO, Talent Management
Tags: Analyst day, benefits, bpo, Core HR, HR, HR Helpdesk, hro, Infosys, Infosys BPO, nelsonhall, Our people are our biggest assets, payroll, platform-based BPO. PeopleSoft 9.0, Swami Swaminathan, talent
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