everest group peak matrix™ for mphro - accenture · everest group peak matrix 1 service providers...
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Copyright © 2016 Everest Global, Inc.
This document has been licensed for exclusive use and distribution by Accenture
EGR-2016-3-E-1875
Focus on Accenture
August 2016
Everest Group PEAK Matrix™ for MPHRO
Copyright © 2016, Everest Global, Inc.
EGR-2016-3-E-18752
Introduction and scope
Everest Group recently released its Multi-Process Human Resources Outsourcing (MPHRO) – Service
Provider Landscape with PEAK Matrix™ Assessment 2016 report. This report analyzes the changing dynamics
of the MPHRO landscape and assesses service providers across several key dimensions.
As part of this report, Everest Group classified 20 service providers on the Everest Group Performance |
Experience | Ability | Knowledge (PEAK) Matrix for MPHRO into Leaders, Major Contenders, and Aspirants.
The PEAK Matrix is a framework that provides an objective, data-driven, and comparative assessment of
MPHRO service providers based on their absolute market success and delivery capability.
Buyers can use the PEAK Matrix to identify and evaluate different service providers. It helps them understand
the service providers’ relative strengths and gaps. However, it is also important to note that while the PEAK
Matrix is a useful starting point, the results from the assessment may not be directly prescriptive for each
buyer. Individual buyers will have to consider their unique situation and requirements, and match them against
service provider capability for an ideal fit.
This document focuses on Accenture’s market success and delivery capabilities. It includes:
Accenture’s positioning on the MPHRO PEAK Matrix
Detailed MPHRO profile of Accenture
Copyright © 2016, Everest Global, Inc.
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Everest Group PEAK Matrix 2016 for MPHRO market
Performance | Experience | Ability | Knowledge (PEAK)
Leaders
Major Contenders
Aspirants
Star Performers
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for MPHRO
Delivery capability
(Scale, scope, technology solutions and innovation, delivery footprint, and buyer satisfaction)
Mark
et
su
ccess
(Re
ve
nu
e, g
row
th, and n
um
ber
of a
ctive
clie
nts
and
new
dea
ls)
High
Low
75th percentile
Low High
25
thp
erc
en
tile
25th percentile
75
thp
erc
en
tile
Leaders
Major Contenders
Aspirants
Capgemini
Aon
Hewitt
ADP
NGA
Human Resources
IBM
Xerox
HPE
WiproTCSNeeyamo
Infosys
WNSMHR
OneSource Virtual
Capita
Ascender
CGIZalaris
Hexaware
Accenture
Source: Everest Group (2016)
Copyright © 2016, Everest Global, Inc.
EGR-2016-3-E-18754
Accenture
Everest Group assessment
Delivery capability
Market successScale Scope
Technology and
innovation
Delivery
footprint
Buyer
satisfaction Overall
Leaders Major Contenders AspirantsMeasure of capability: Best-in-class Not matured
Accenture is a Leader and a Star Performer in the MPHRO PEAK
Matrix, with one of the highest revenues in the industry. It is very
successful in the large market segment in North America and Europe
It has the ability to combine HRO with other services, such as FAO
and PO, to offer a single back-office partnership to its clients
It has good synergies among its consulting, technology, and services
organizations, with a considerable share of new services deals
getting sourced through consulting and technology
It has strong partnerships with, and multiple clients on Workday and
SuccessFactors. It has also strengthened its cloud and mobility
credentials by acquiring Cloud Sherpas and Solium
It is investing on the ServiceNow platform to enhance employee
experience. It is also improving the coverage of contingent workers
It improved its analytics capabilities through organic investments as
well as acquisitions such as that of i4C analytics. It also offers
analytics-as-a-service through its Insights Platform
Reference clients cite deep HR domain knowledge, relationship
management, and project management as its major strengths
Accenture’s favorite turf – the large markets in
developed economies – is mature and slow-growing.
Its recent strategy to target the faster growing
mid-market buyers whose needs fit its value
proposition – consultative and wide scope HR
outsourcing, is a step in the right direction
While it has invested heavily in analytics, on-the-
ground implementation has scope for improvement
Buyers feel that its responsiveness to clients is
sometimes impeded by the lack of flexibility of its
internal processes. They also opine that it should be
more proactive in looking for efficiencies and savings
Strengths Areas of improvement
Source: Everest Group (2016)
Copyright © 2016, Everest Global, Inc.
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Accenture
MPHRO service capability and strategy
1 FTEs located in offshore (India, China, and Southeast Asia) or nearshore locations (Eastern Europe and Latin America) and delivering services for North America
or Western Europe
Source: Everest Group (2016)
Current MPHRO market segment focus
Buyer segment: Targets buyers interested in a broader value proposition in terms
of return on investment in workforce performance and productivity
Geography: North America, EMEA, Latin America, and Asia Pacific
Company profile: Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy, consulting, digital,
technology, and operations. With approximately 373,000 people serving clients in
more than 120 countries, Accenture drives innovation to improve the way the world
works and lives.
Headquarters: Dublin, Republic of Ireland
Key leaders (BPO/HRO business): Michael J. Salvino, Group Chief Executive –
Accenture Operations; Jill Goldstein, Global Practice Lead, Talent and HR
Operations
Website: www.accenture.com
Offered as MPHRO solution Offered on a stand-alone basis Not offered
Recent HRO-related developments/investments
Current MPHRO technology strategy
Overview: Accenture is a technology-agnostic service provider. It supports
traditional on-premise systems, such as SAP and PeopleSoft, as well as SaaS
technology providers such as Workday and SuccessFactors. Solutions are
supplemented with proprietary technologies such as HR portal and BPO
navigator
Technology models supported:
Tie-and-run
Support/
augmentation
Customized
replacement/
implementation
Platform-based
solution
Areas Developments/investments
M&A /
partnership
Accenture acquired FusionX to strengthen cybersecurity services,
which are critical for smart grids and protecting infrastructure
Accenture has acquired Cloud Sherpas to strengthen its as-a-
Service capabilities
Accenture’s employee experience platform, ServiceNow, provides
a portal with advanced digital & social capabilities, HR case
management, and content management. It integrates with other
platforms via web services, Workday Foundation Data, and HRSS
agents’ phone system
HR
technology-
related
Refined the cornerstone Accenture Operations Navigator
Has made significant investments in automation, robotic process
automation, virtual assistants, and artificial intelligence. In the
past 15 months, 4,900+ automation solutions have been deployed
across the delivery network, driving time-saving benefits equal to
12 million annualized work hours
Analytics
and mobile
Developed Accenture Online Referral Tool, which is a recruiter
dashboard
Developed digital tools such as interview app for improved
interview experience and miniBots for automation
Recruitment
and selectionBenefits Payroll HRIS
Contact
center
Global
mobilityLearning
Compen-
sation
Regulatory
and
compliance
Performance
management
Employee
relations
Total HRO delivery FTEs = ~5,050
Offshore1 Nearshore1 Onshore
~2,800 ~750 ~1,500
SERVICE SUITE
Copyright © 2016, Everest Global, Inc.
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Accenture
MPHRO client portfolio
1 Based on Everest Group’s definition of MPHRO and analyst estimates
Source: Everest Group (2016)
Major MPHRO clients
Large U.S. consumer products retailer
Leading health and hygiene company
Leading UK - based construction and services company
Large global consumer products company
MPHRO revenue (ACV) geography mix MPHRO revenue (ACV) industry mix MPHRO buyer size mix
51%
23%
18%
7%
100% = US$443 million1
EMEA
North America
Latin America
31%
17%13%
10%
8%
7%6%
4%4%
100% = US$443 million1
67%
33%
100% = 48 deals
Manufacturing
Financial servicesHealthcare
Mid-market
Large
market
Asia Pacific
Services
TelecomEnergy
MPHRO experience
Total number of current MPHRO clients – 48
Recent MPHRO wins
Signed large new deals with a Japanese electric utility company, an aerospace and defence service provider, and a multinational
beverage and brewing company
Others
Retail
Hi-tech
Government (1%)
Copyright © 2016, Everest Global, Inc.
EGR-2016-3-E-18757
Accenture
Key MPHRO delivery locations
Niagara
Charlotte
Manila
Chengdu
Dalian
Kumamoto
ShenzhenShanghai
Cebu
Delhi
MumbaiBangalore Chennai
Johannesburg
Buenos Aires
Belo Horizonte
Rio de Janeiro
Sacramento
San Antonio
Prague
Timisoara Bucharest
Ilocos
Source: Everest Group (2016)
Copyright © 2016, Everest Global, Inc.
EGR-2016-3-E-18758
Appendix
Copyright © 2016, Everest Global, Inc.
EGR-2016-3-E-18759
Everest Group classifies MPHRO service providers into
Leaders, Major Contenders, and Aspirants on the
Everest Group PEAK Matrix
1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page
2 Based on a combination of MPHRO revenue, number of active clients, number of new deals signed, and year-on-year growth of MPHRO revenue
Source: Everest Group (2016)
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix1 for MPHRO
Top quartile performance
across market success
and delivery capability2nd or 3rd quartile
performance across market
success and delivery
capability
4th quartile performance
across market success
and delivery capability
High
Low
25
thp
erc
en
tile
75
thp
erc
en
tile
75th percentile
Ma
rke
t s
uc
ce
ss
2
(Re
ve
nu
e, gro
wth
,
an
d n
um
ber
of
active
clie
nts
an
d n
ew
de
als
)
Aspirants
Leaders
Major Contenders
Low High25th percentile
MPHRO delivery capability
(Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)
Copyright © 2016, Everest Global, Inc.
EGR-2016-3-E-187510
Service providers are positioned on Everest Group
PEAK Matrix based on evaluation of two key
dimensions
Measures the scope of
services provided based on
distribution of
Processes
ACV in geographies
Coverage of
geographies
Industries
Buyer size
Measures technology
capability and innovation on
the basis of
Technology model
employed
HR platform experience
Innovation in Cloud,
BPaaS, social, mobility,
analytics, and robotic
automation
Measures the satisfaction
levels2 of buyers across
Business driver
Process expertise
Implementation
Technology and
innovation
Relationship
management
Overall satisfaction
Measures success achieved in the
MPHRO market. Captured through
MPHRO revenue, number of active
clients, number of new deals signed,
and year-on-year growth of MPHRO
revenue
Measures ability to deliver services effectively.
Captured through five subdimensions
Measures the scale of
operations based on
Overall company
revenue
Percentage contribution
of MPHRO revenue to
the overall company
revenue
Scale ScopeTechnology solutions
and innovationBuyer satisfaction
Delivery capability
Ma
rke
t s
uc
ce
ss Major Contenders
Leaders
Aspirants
Measures the delivery
footprint based on
Number of delivery
centers across the seven
major regions1
Balance of the shoring
mix
Delivery footprint
1 North America, Latin America, Western Europe, EEMEA (Eastern Europe, Middle East, and Africa), India, China, and the rest of Asia Pacific
2 Measured through responses from three referenced buyers for each service provider
Copyright © 2016, Everest Global, Inc.
EGR-2016-3-E-187511
Additionally, Everest Group confers the “Star
Performers” title to providers that demonstrate the
strongest forward movement over time on the PEAK Matrix
Year 1
Year 0
Service
provider
Capgemini and OneSource Virtual are not considered for Star Performer analysis due to non-participation in the PEAK Matrix analysis in 2015
2016 MPHRO Star
Performers
Delivery capability
Everest Group selects Star Performers based on the relative Year-on-Year (YOY)
movement of each service provider on the PEAK Matrix.
Delivery capability dimension
In order to assess advancements on
capability, we evaluate the performance of
each service provider on the PEAK Matrix
across a number of parameters including:
Annual growth in scale
Increase in scope of services
Expansion of delivery footprint
Increase in technology leverage and
investment in innovation
The “Star Performers” title relates to YOY performance for a given service provider and does not
reflect the overall market leadership position. Those identified as “Star Performers” may include
“Leaders”, “Major Contenders”, or “Aspirants”.
Market success dimension
In order to assess advancements on market
success, we evaluate the performance of each
service provider on the PEAK Matrix across a
number of parameters including:
Yearly ACV growth
Number of new contract signings
Value of new contract signings
The top quartile performers on each of the
specified parameters are identified and the “Star
Performer” rating is awarded to the service
providers with
The maximum number of top quartile
performances across all of the above
parameters, and
At least one area of top quartile performance
advancement in either dimensions of market
success or delivery capability
Ma
rke
t s
uc
ce
ss
Copyright © 2016, Everest Global, Inc.
EGR-2016-3-E-187512
FAQs (page 1 of 2)
Does the PEAK Matrix assessment incorporate any subjective criteria?
Everest Group’s PEAK Matrix assessment adopts an objective and fact-based approach (leveraging service
provider RFIs and Everest Group’s proprietary databases containing providers’ deals and operational capability
information). In addition, these results are validated / fine-tuned based on our market experience, buyer interaction,
and provider briefings
Is being a “Major Contender” or “Aspirant” on the PEAK Matrix an unfavorable outcome?
No. The PEAK Matrix highlights and positions only the best-in-class service providers in a particular function/vertical.
There are a number of providers from the broader universe that are assessed and do not make it to the PEAK
Matrix at all. Therefore, being represented on the PEAK Matrix is in itself a favorable recognition
What other aspects of the PEAK Matrix assessment are relevant to buyers and providers besides the “PEAK
Matrix position”?
The PEAK Matrix position is only one aspect of Everest Group’s overall assessment. In addition to assigning a
“Leader”, “Major Contender” or “Aspirant” title, Everest Group highlights the distinctive capabilities and unique
attributes of all the PEAK Matrix providers assessed in its report. The detailed metric-level assessment and
associated commentary is helpful to the buyers in selecting particular providers for their specific requirements. It
also helps providers showcase their strengths in specific areas
What are the incentives for buyers and providers to participate/provide inputs to the PEAK Matrix research?
Participation incentives for buyers include a summary of key findings from the PEAK Matrix assessment
Participation incentives for providers include adequate representation and recognition of their capabilities/success in
the market place, and a copy of their own “profile” that is published by Everest Group as part of the “compendium of
PEAK Matrix providers” profiles
Copyright © 2016, Everest Global, Inc.
EGR-2016-3-E-187513
FAQs (page 2 of 2)
What is the process for a service provider to leverage their PEAK Matrix positioning status ?
Providers can use their PEAK Matrix positioning in multiple ways:
– Issue a press release declaring their positioning/rating
– Circulate a customized PEAK Matrix profile (with clients, prospects, etc.)
– Quotes from Everest Group’s analysts could be disseminated to the media
– Leverage the PEAK Matrix branding across communications (e-mail signatures, marketing brochures, credential
packs, client presentations, etc.)
The provider must obtain the requisite licensing and distribution rights for the above activities through an
agreement with the designated PoC at Everest Group
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