HR Outsourcing Today Simon Constance

HRO deals are still happening

► IBM wins multi tower BPO and IT deal with Cemex

► Capita has a partnership with British Army and unique deals in the NHS covering recruiting, HR and Payroll

► ADP wins HP deal to implement Globalview for Payroll and their enterprise eTIME system

► NorthgateArinso announce deal to provide integrated payroll and HR solution to Aer Lingus as well as Payroll deal with RAC

► Xerox wins PWC in UK and global learning and benefits for ATOS

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►80% of private companies have an outsourced payroll model*

*Ernst & Young’s 2012 Global Payroll Survey

The vendor landscape is evolving fast …

– A snapshot of vendor activity that highlights themes in their strategies

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xPO/Recruit acquisition demonstrating growth in RPO in Asia/Pac

Kenexa / IBM More developments in talent software acquisitions

Talent 2 –

The persistence of the regional competition

Kelly OGC – building an RPO/MSP business across Europe

Alexander Mann / ABC Consultants

partnership about the practical realities of building a “global”

service

70% of companies participating in the EY Global Payroll Survey are not confident there is a truly global vendor

SAP/Success Factors,

Oracle/Taleo Building broad talent propositions beyond software

Aon Hewitt / Omnipoints

Workday service

Giving end to end resource for the Workday platform

HP / Acrede partnership Innovative payroll technology

ADP acquisitions Employease - to increase capabilities in: recruitment, ESS and MSS (2010) Workscape – to increase benefits administration

HRO landscape

► More added value –

business improvement

► Generations 2 and 3

contract renewals

► A la carte options

► Costs of transition a

challenge

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► Mature HRO market

► Increased adoption of HR

BPO by small and

midmarket

► Increased adoption of HRO for specific services

► Limited number of new

major end-to-end HR BPO

deals

► Return to captive model for

some services

► Technology is critical

► Market pressure leading to

vendors consolidation

Buyer perspective

Vendor perspective

►Deals are still happening ► Product innovation ► Intelligent buyers

What we see from our work

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Organisations need to support scaling up in Rapid Growth Markets

Increased uptake and expectation in mobile and collaborative technology

Analytics will continue to drive product innovation

Providers need to deliver innovation

A rapidly declining share of consumer spend will sit within “developed” economies. Talent and resourcing strategy needs to respond: Sourcing and growing experience of building

businesses and customer centricity in “developing” markets

With a focus on staying competitive, building brand, and efficiently sustaining talent pools: RPO and HRO providers are building offerings in

process and attraction management

The technology vendors are all about “social”, but taking very difference approaches

Being able to provide real time insight in a language that talks to business managers is vital for HR: MI isn’t about dashboards but about being

predictive and insightful SAP were open about analytics being key to the

development of Success Factors

Buyers are demanding more and more from their providers – and providers are stepping up: Providers must help drive down transition costs if

they want to win renewals from competitors

Buyers want service innovation from their providers not just a value for money service

Thank you