MPHRO - Service Provider Landscape With PEAK Matrix Assessment 2016

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Multi-Process Human Resources Outsourcing (MPHRO) – Service

Provider Landscape with PEAK Matrix™ Assessment 2016


Human Resources Outsourcing (HRO)
Market Report – August 2016

Copyright © 2016 Everest Global, Inc.


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Table of contents (page 1 of 2)

Topic Page no.

Background, scope, and methodology 5

Summary of key messages 12

Section I: Everest Group PEAK Matrix for MPHRO 13


 Summary 14
 MPHRO PEAK Matrix 18
 Assessment of service providers 19
 MPHRO Star Performers 23

Section II: Everest Group’s remarks on service providers 25


 Accenture 26
 ADP 27
 Aon Hewitt 28
 Ascender 29
 Capgemini 30
 Capita 31
 CGI 32
 Hexaware 33
 HPE 34
 IBM 35
 Infosys 36
 MHR 37
 Neeyamo 38
 NGA Human Resources 39
 OneSource Virtual 40

Copyright © 2016, Everest Global, Inc.


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Table of contents (page 2 of 2)

Topic Page no.

Section II: Everest Group’s remarks on service providers


 TCS 41
 Wipro 42
 WNS 43
 Xerox 44
 Zalaris 45

Appendix 46
 Glossary of key terms 47
 HRO research calendar 49
 References 50

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Background and scope of the research

Background of the research


The Multi-Process Human Resources Outsourcing (MPHRO) market is undergoing significant shifts in its dynamics.
The global leaders continue to dominate the more mature MPHRO markets (North America and Western Europe). But
they are facing stiff competition in emerging markets, which are the primary growth levers in MPHRO. The focus is
steadily shifting towards such markets (majorly Asia Pacific) where adapting to local conditions is paramount.
Providers are also targeting the mid-market in developed economies in search of growth. Innovation in Business
Process-as-a-Service (BPaaS), driven primarily though partnerships with Workday, SuccessFactors and/or Oracle
Cloud and advancements in HR analytics, social, & mobility solutions, and, to a lesser extent, Robotic Process
Automation (RPA) are becoming increasingly important for service providers to differentiate themselves. Players are
adapting themselves to this changing reality and tweaking their geographic and technology strategies. In such
conditions, the battle of providers with varying strengths and areas of improvement is bound to heat up, especially in
the growth-driving APAC region and the mid-market.

In this research, we analyze the MPHRO service provider landscape across various dimensions:
 Everest Group PEAK Matrix for MPHRO 2016 and Star Performers 2016
 Everest Group’s remarks on service providers
 Key insights on PEAK Matrix dimensions

The scope of analyses includes:


 MPHRO deals in which a minimum of three HR processes are included
 All MPHRO deals signed as of September 2015
 Deals where buyer employee size is 3,000 or more
 All geographies and industries

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Our research methodology is based on four pillars of strength
to produce actionable and insightful research for the industry

 Market thought leadership


 Actionable and insightful research
 Syndicated and custom research deliverables
1 2 3 4
Robust definitions and Primary sources of Diverse set of market Fact-based research
frameworks information touchpoints (Data-driven analysis with
(Function-specific pyramids, (Annual contractual and (Ongoing interactions across expert perspectives, trend-
Total Value Equation, PEAK operational RFIs, service key stakeholders, input from analysis across market
Matrix, and market maturity) provider briefings & buyer a mix of perspectives and adoption, contracting, and
interviews, & web-based interests, supports both data service providers)
surveys) analysis and thought
leadership)

 Proprietary contractual database of 625+ MPHRO contracts (updated annually)


 Year-round tracking of 20+ MPHRO service providers
 Large repository of existing research in HRO
 Dedicated team for multiple areas within HRO research, spread over two continents
 Over 20 years’ experience of advising clients on HRO-related decisions
 Executive-level relationships with buyers, service providers, technology providers, and industry associations

Copyright © 2016, Everest Global, Inc.


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Everest Group’s MPHRO research is based on multiple
sources of proprietary information (page 1 of 2)

1
 Everest Group’s proprietary database of 625+ MPHRO deals (updated Service providers covered in the analysis1
annually)
 The database tracks the following elements of each MPHRO deal
– Buyer details including industry, location, and signing region
– Deal details including TCV, ACV, contract term, start date, buyer
employees served, and primary pricing structure
– Scope: Process coverage and geographic coverage (employees
covered by each region)
– Technology ownership and maintenance
– Global sourcing

2
 Everest Group’s proprietary database of operational capability of 20+
MPHRO service providers (updated annually)
 The database tracks the following capability elements for each service
provider
– Major MPHRO clients and recent wins
– Overall MPHRO revenue, total clients, and buyer employees served
– Recent HRO-related developments (investments and partnerships)
– MPHRO delivery locations and level of offshoring
– Technology offerings within MPHRO
– MPHRO service suite

1 Assessment for MHR excludes service provider inputs on this particular study, and is based on Everest Group’s estimates which leverage Everest Group’s
proprietary Transaction Intelligence (TI) database, ongoing coverage, the service provider’s public disclosures, and interaction with buyers
2 The data on Hewlett Packard Enterprise (HPE) was collected before its merger with CSC
Confidentiality: Everest Group takes its confidentiality pledge very seriously. Any contract-specific information collected, will only be presented back to the industry in an
aggregated fashion

Copyright © 2016, Everest Global, Inc.


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Everest Group’s MPHRO research is based on multiple
sources of proprietary information (page 2 of 2)

3
Buyer surveys and interactions
Global surveys and one-on-one executive-level interviews of buyers are undertaken to understand how
organizations perceive performance of their MPHRO provider. The surveys/interviews focus on different aspects of
an outsourcing relationship including:
 Key drivers for outsourcing MPHRO
 Contract details (including process scope, signing year, and duration)
 Overall performance of the service provider including key strengths and improvement areas
 Detailed assessment of service provider performance across elements such as:
– Key MPHRO metrics
– HR processes
– Implementation and transition phases
– Governance and relationship management

The analyses in this report are presented at two levels:


 Overall market analysis that highlights the overall market composition/dynamics
 The current market trends based on deal activities up to September 2015
The sample size varies for different analyses, based on the deal detail availability.

Copyright © 2016, Everest Global, Inc.


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Everest Group separates Multi-Process HRO (MPHRO) from
Single-Process HRO (SPHRO)

Strategy
Judgment-intensive
Transaction-intensive

HR
MPHRO SPHRO
strategy
Outsourcing of multiple HR  Outsourcing of single stand-
Employee relations
processes to one service alone HR process
provider in an integrated way Regulatory and compliance  Major SPHRO markets are:
Global mobility – Payroll outsourcing
Performance & succession – Recruitment Process
Learning Outsourcing (RPO)
Recruitment – Learning Services
Compensation Outsourcing (LSO)
Benefits – Benefits Administration
Outsourcing (BAO)
Payroll
Employee data management
HR information systems and reporting
Employee contact center

 This report focuses on the MPHRO market


 For this study, we have included MPHRO deals in which
– A minimum of three HR processes are included
– The buyer employee size is 3,000 or more
 The analysis includes all deals signed as of September 2015

Copyright © 2016, Everest Global, Inc.


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MPHRO includes outsourcing of multiple HR functions

Strategy Employee relations Strategy


 Policies  Strategy Judgment-intensive
 Procedures HR  Performance / conflict Transaction-intensive
 HR job profiles strategy resolution
 Budgeting/forecasting  Union relations
Employee data Performance & succession
 Workforce planning Employee relations  Employee assistance
management  Strategy
 M&As/divestitures programs
 Employee data changes Regulatory and compliance  Career development
 Values and ethics  Communication
 Status changes Global mobility  Succession planning
 HR strategy development  Vendor management
 New hire processing  Performance surveys
Performance & succession
 Transfer processing  Collation and analysis
 Timekeeping
Learning  Disciplinary actions
 Cost center assignments Recruitment  Vendor management
 Time and expense Compensation
administration
Benefits Regulatory & compliance
 Unemployment
Payroll  Strategy
administration
 Workforce diversity and
 Exit administration Employee data management
anti-discrimination
 Vendor management HR information systems and reporting  Government reporting
Employee contact center  Claims/audits
 Visas
 Exit administration
 Vendor management

Payroll Benefits Compensation Recruitment Learning Global mobility


 Strategy  Strategy  Strategy  Strategy  Strategy  Strategy and policy
 Payroll preparation  Healthcare plans  Job analysis/descriptions  Sourcing  Curriculum development development
(build to gross)  Defined benefit plans  Job pricing  Screening  Content design  Assignment package
 Payroll calculation  Defined contribution  Base pay adjustments  Applicant tracking  Content development  Pre-departure activities
(gross to net) plans  Salary administration  Interview scheduling  Content management  On-assignment activities
 Payroll distribution  Workers’  Bonuses/incentives/awards  Assessment  Registration  Property services
 Reconciliation compensation  Stock options/purchase  Background checking management  Moving services
 Third-party payments  Leave programs program  Offer letter management  Scheduling  Policy exceptions
 Payroll tax reporting (e.g., LOA)  Commissions/draws  Onboarding  Evaluation management  Tax planning
and filing  Health and safety  Compensation statement  Vendor management  Vendor management administration
 Vendor management  Vendor management  Vendor management  Vendor management

Copyright © 2016, Everest Global, Inc.


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Contents

 Summary of key messages

 Everest Group PEAK Matrix for MPHRO

 Everest Group’s remarks on service providers

 Appendix

Copyright © 2016, Everest Global, Inc.


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Summary of key messages

Everest Group PEAK Matrix for MPHRO


 Everest Group classifies 20 MPHRO service
providers on the Everest Group Performance |
Experience | Ability | Knowledge (PEAK) Matrix Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for MPHRO
into the three categories of Leaders, Major
Leaders Major Contenders Aspirants Star Performers
Contenders, and Aspirants
75th percentile
 Based on the 2016 MPHRO PEAK Matrix, the High Leaders
Aon Accenture

(Revenue, growth, and number of active clients


segmentation of service providers is as follows Hewitt
(in alphabetical order within each category): Major Contenders
ADP IBM
– Leaders: Accenture, ADP, Aon Hewitt, IBM, and

75th percentile
NGA Human
NGA Human Resources (NGA) Resources
– Major Contenders: Ascender, Capita,

Market success
Xerox

and new deals)


Capgemini, CGI, Hexaware, HPE, Infosys, HPE Capgemini
Neeyamo, TCS, Wipro, WNS, Xerox, and Zalaris CGI
Zalaris

25th percentile
– Aspirants: MHR and OneSource Virtual Ascender
Capita Wipro
Neeyamo TCS
 Based on the relative Year-on-Year (YOY) Infosys
OneSource Virtual
movement of service providers on the PEAK Hexaware
Matrix, Everest Group identified four service MHR WNS
providers as the “2016 MPHRO Market Star
Low Aspirants
Performers” – Accenture, Hexaware, IBM,
and Zalaris Low 25th percentile High
Delivery capability
(Scale, scope, technology solutions and innovation, delivery footprint, and buyer satisfaction)

Copyright © 2016, Everest Global, Inc.


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Contents

 Summary of key messages

 Everest Group PEAK Matrix for MPHRO

 Everest Group’s remarks on service providers

 Appendix

Copyright © 2016, Everest Global, Inc.


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Everest Group PEAK Matrix for MPHRO

 Everest Group classifies 20 MPHRO service providers on the Everest Group Performance | Experience |
Ability | Knowledge (PEAK) Matrix into the three categories of Leaders, Major Contenders, and Aspirants

 The PEAK Matrix is a framework to assess the market success and delivery capability of service providers

 Based on the 2016 MPHRO PEAK Matrix, segmentation of service providers is as follows (in alphabetical
order within each category):
– Leaders: Accenture, ADP, Aon Hewitt, IBM, and NGA Human Resources
– Major Contenders: Ascender, Capgemini, Capita, CGI, Hexaware, HPE, Infosys, Neeyamo, TCS,
Wipro, WNS, Xerox, and Zalaris
– Aspirants: MHR and OneSource Virtual

 Based on the relative Year-on-Year (YOY) movement of different service providers on the PEAK Matrix,
Everest Group identified four service providers as the “2016 MPHRO Market Star Performers” – Accenture,
Hexaware, IBM, and Zalaris

Copyright © 2016, Everest Global, Inc.


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Everest Group classifies MPHRO service providers into
Leaders, Major Contenders, and Aspirants on the
Everest Group PEAK Matrix
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix 1 for MPHRO
75th percentile
High
Leaders
and number of active clients and new deals)

Top quartile performance

75th percentile
Major Contenders across market success
and delivery capability
2nd or 3rd quartile
performance across market
Market success2
(Revenue, growth,

success and delivery


capability
25th percentile

Aspirants
4th quartile performance
across market success
and delivery capability
Low
Low 25th percentile High
MPHRO delivery capability
(Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)
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)

Copyright © 2016, Everest Global, Inc.


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Service providers are positioned on Everest Group
PEAK Matrix based on evaluation of two key
dimensions

Leaders

Market success
Measures success achieved in the Major Contenders
MPHRO market. Captured through
MPHRO revenue, number of active
clients, number of new deals signed,
and year-on-year growth of MPHRO
revenue

Aspirants

Measures ability to deliver services effectively.


Delivery capability
Captured through five subdimensions

Technology solutions
Scale Scope Delivery footprint Buyer satisfaction
and innovation

Measures the scale of Measures the scope of Measures technology Measures the delivery Measures the satisfaction
operations based on services provided based on capability and innovation on footprint based on levels2 of buyers across
 Overall company distribution of the basis of  Number of delivery  Business driver
revenue  Processes  Technology model centers across the seven  Process expertise
 Percentage contribution  ACV in geographies employed major regions1  Implementation
of MPHRO revenue to  Coverage of  HR platform experience  Balance of the shoring  Technology and
the overall company geographies  Innovation in Cloud, mix innovation
revenue  Industries BPaaS, social, mobility,  Relationship
 Buyer size analytics, and robotic management
automation  Overall satisfaction

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

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Additionally, Everest Group confers the “Star
Performers” title to providers that demonstrate the
strongest forward movement over time on the PEAK Matrix
Everest Group selects Star Performers based on the relative Year-on-Year (YOY)
movement of each service provider on the PEAK Matrix.

Market success dimension


In order to assess advancements on market
Market success

Year 1
success, we evaluate the performance of each
Service service provider on the PEAK Matrix across a
provider number of parameters including:
Year 0  Yearly ACV growth
 Number of new contract signings
 Value of new contract signings

Delivery capability
2016 MPHRO Star
Delivery capability dimension The top quartile performers on each of the Performers
In order to assess advancements on specified parameters are identified and the “Star
capability, we evaluate the performance of Performer” rating is awarded to the service
each service provider on the PEAK Matrix providers with
across a number of parameters including:  The maximum number of top quartile
 Annual growth in scale performances across all of the above
 Increase in scope of services parameters, and
 Expansion of delivery footprint  At least one area of top quartile performance
 Increase in technology leverage and advancement in either dimensions of market
investment in innovation success or delivery capability
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”.

Capgemini and OneSource Virtual are not considered for Star Performer analysis due to non-participation in the PEAK Matrix analysis in 2015

Copyright © 2016, Everest Global, Inc.


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Everest Group PEAK Matrix 2016 for MPHRO market
Performance | Experience | Ability | Knowledge (PEAK)

Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for MPHRO
Leaders
75th percentile Major Contenders
(Revenue, growth, and number of active clients and new deals)

Aspirants
High Leaders Star Performers
Aon Accenture
Hewitt
Major Contenders
ADP IBM

75th percentile
NGA
Human Resources
Market success

Xerox

HPE Capgemini
Zalaris
CGI
25th percentile

Ascender
Wipro
Capita
Neeyamo TCS
OneSource Virtual
Infosys
Hexaware

MHR WNS

Low Aspirants
Low 25th percentile High
Delivery capability
(Scale, scope, technology solutions and innovation, delivery footprint, and buyer satisfaction)

Source: Everest Group (2016)

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Assessment of service providers’ MPHRO market success and
delivery capabilities1,2
Leaders
Measure of
Best-in-class Very high High Medium high Medium Medium low Low Not matured
capability /
market success: Leaders Major Contenders Aspirants

Delivery capability
Technology
Service solutions and Delivery Buyer Market
provider Scale Scope innovation footprint satisfaction3 Overall success

Accenture

ADP

Aon Hewitt

IBM

NGA Human
Resources

1 Service providers scored using Everest Group’s proprietary scoring methodology given on page 15
2 For a detailed profile of each service provider, refer to the upcoming report - MPHRO Service Provider Compendium 2016
3 Buyer satisfaction score and overall PEAK Matrix positioning adversely impacted for those service providers who provided inadequate number of buyer references

Copyright © 2016, Everest Global, Inc.


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Assessment of service providers’ MPHRO market success and
delivery capabilities1,2
Major Contenders (page 1 of 2)
Measure of
Best-in-class Very high High Medium high Medium Medium low Low Not matured
capability /
market success: Leaders Major Contenders Aspirants

Delivery capability
Technology
Service solutions and Delivery Buyer Market
provider Scale Scope innovation footprint satisfaction3 Overall success

Ascender

Capgemini

Capita

CGI

Hexaware

HPE

Infosys

1 Service providers scored using Everest Group’s proprietary scoring methodology given on page 15
2 For a detailed profile of each service provider, refer to the upcoming report - MPHRO Service Provider Compendium 2016
3 Buyer satisfaction score and overall PEAK Matrix positioning adversely impacted for those service providers who provided inadequate number of buyer references

Copyright © 2016, Everest Global, Inc.


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Assessment of service providers’ MPHRO market success and
delivery capabilities1,2
Major Contenders (page 2 of 2)
Measure of
Best-in-class Very high High Medium high Medium Medium low Low Not matured
capability /
market success: Leaders Major Contenders Aspirants

Delivery capability
Technology
Service solutions and Delivery Buyer Market
provider Scale Scope innovation footprint satisfaction3 Overall success

Neeyamo

TCS

Wipro

WNS

Xerox

Zalaris

1 Service providers scored using Everest Group’s proprietary scoring methodology given on page 15
2 For a detailed profile of each service provider, refer to the upcoming report - MPHRO Service Provider Compendium 2016
3 Buyer satisfaction score and overall PEAK Matrix positioning adversely impacted for those service providers who provided inadequate number of buyer references

Copyright © 2016, Everest Global, Inc.


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Assessment of service providers’ MPHRO market success and
delivery capabilities1,2
Aspirants
Measure of
Best-in-class Very high High Medium high Medium Medium low Low Not matured
capability /
market success: Leaders Major Contenders Aspirants

Delivery capability
Technology
Service solutions and Delivery Buyer Market
provider Scale Scope innovation footprint satisfaction3 Overall success

MHR

OneSource
Virtual

MHR and OneSource Virtual are niche players with major focus on United Kingdom and North America, respectively. The
narrow geographic scope is a major reason for them being declared as Aspirants on the MPHRO PEAK Matrix.

1 Service providers scored using Everest Group’s proprietary scoring methodology given on page 15
2 For a detailed profile of each service provider, refer to the upcoming report - MPHRO Service Provider Compendium 2016
3 Buyer satisfaction score and overall PEAK Matrix positioning adversely impacted for those service providers who provided inadequate number of buyer references

Copyright © 2016, Everest Global, Inc.


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2016 MPHRO Star Performers (page 1 of 2)
Distinguishing features

2016 MPHRO market Distinguishing features of market Distinguishing features of


Star Performers success in 2015 capability enhancements in 2015

 It has been able to sign a healthy  It has strengthened its cloud and mobility
number of new deals totalling eight, credentials by acquiring Cloud Sherpas and
maintaining its position as one of the Solium
dominant players in the MPHRO  It has bolstered its analytics capabilities not
market only through organic investments but also
through acquisitions such as i4C analytics

 It has shown a remarkable increase in  It is one of the few players to strategically


its overall MPHRO revenue invest in RPA to improve process efficiency. It
 It has been able to break into a new also has an existing partnership with
geography, the Middle East, through its BluePrism
new deal with a huge logistics player  It is one of the first players in the MPHRO
market to establish a partnership with Oracle
Fusion HCM

Star Performers 2016

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2016 MPHRO Star Performers (page 2 of 2)
Distinguishing features

2016 MPHRO market Distinguishing features of market Distinguishing features of


Star Performers success in 2015 capability enhancements in 2015

 It has signed a healthy number of large  It continues to invest in its proprietary Watson
new deals with complex process and technology and the Kenexa acquisition
geographic scope strengthening its  It recently acquired Meteorix, a leading
position among Leaders Workday services partner to further strengthen
 The new deals signed were much its Workday capabilities
larger than the ones signed in 2014  It has also seen increased adoption of its
mobility solutions

 It has been able to capture a healthy  It strengthened its partnership with


number of new deals, expanding its SuccessFactors. It became a value-added
scope into new industries reseller of SuccessFactors in Sweden
 It has extended its geographic scope  It has invested in developing language
to include the Baltics and Eastern capabilities in German
Europe

Star Performers 2016

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Contents

 Summary of key messages

 Everest Group PEAK Matrix for MPHRO

 Everest Group’s remarks on service providers

 Appendix

Copyright © 2016, Everest Global, Inc.


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Accenture
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 Accenture is a Leader and a Star Performer in the MPHRO PEAK  Accenture’s favorite turf – the large markets in
matrix, with one of the highest revenues in the industry. It is very developed economies is mature and slow-growing.
successful in the large market segment in North America and Europe Its recent strategy to target the faster growing mid-
 It has the ability to combine HRO with other services such as FAO and market buyers whose needs fit its value proposition
PO, to offer a single back-office partnership to its clients – consultative and wide scope HR outsourcing, is a
 It has good synergies among its consulting, technology, and services step in the right direction
organizations, with a considerable share of new services deals getting  While it has invested heavily in analytics, on-the-
sourced through consulting and technology ground implementation has scope to improve
 It has strong partnerships with, and multiple clients on Workday and  Buyers feel that its responsiveness to clients is
SuccessFactors. It also strengthened its cloud and mobility credentials sometimes impeded by the lack of flexibility of its
by acquiring Cloud Sherpas and Solium internal processes. They also opine that it should
 It is investing on the ServiceNow platform to enhance employee be more proactive in looking for efficiencies and
experience. It is also improving coverage of contingent workers savings
 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
Source: Everest Group (2016)

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ADP
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 With one of the highest revenues and number of active deals in the  ADP needs to be vigilant of the increasing
market, ADP is a Leader on the MPHRO PEAK Matrix competition on its favorite ground, the U.S. mid-
 The U.S. mid-market (3,000 to 15,000 employees), served through its market, from technology vendors that offer SaaS
proprietary BPaaS model, is its sweet spot plus basic services, as well as from BPO providers
 Its proprietary analytics solution, ADP DataCloud, is powered by actual  It has the potential to reap greater success in the
operational data, especially in North America. The technology has Asia Pacific (APAC) region. Though the strategy of
improved in functionality and intuitiveness and is likely to be a game putting forth a spectrum of offerings from SaaS to
changer in benchmarking and predictive analytics, particularly around hybrid to managed services is in place, a more
attrition management focused execution is the need of the hour
 It leverages its strength in payroll outsourcing, RPO, and BAO to  While it has improved focus on a consultative
acquire HRO customers and to provide holistic services approach to HR services, there is scope for further
 The ADP Mobile App, which is comparable to B2C apps in terms of its improvement on that front
intuitiveness, continues to be heavily adopted  It should focus on expanding the scope of ADP
 It is expanding its ecosystem through ADP Marketplace which gives DataCloud to geographies beyond North America
clients, developers, and partners access to ADP’s APIs and enables  Reference clients feel that it needs to share HR
them to connect their systems with those of ADP best practices more proactively with them
 Buyers opine that consistent high quality of services and relationship
management are its key areas of strength
Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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Aon Hewitt
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 Aon Hewitt is a Leader on the MPHRO PEAK Matrix with the highest  Aon Hewitt’s target market is mature and slow-
revenue in the MPHRO market growing. Its strategy of partnering with Workday to
 It is a strong player in the North American large market segment. It target the faster growing mid-market is the right way
also has a clearly defined strategy to focus on the mid-market going ahead
forward  It has an opportunity to target Europe more
 It has comprehensive end-to-end HRO offerings and a proven aggressively by leveraging its expertise in serving
capability to execute large, complex, and multi-continent deals mature geographies
 It has strong partnerships with major SaaS providers, especially  Its analytics capabilities lag behind those of its
Workday, and has a large number of deals on that platform. It peers. It also has scope to improve its social and
strengthened its Workday capabilities in Europe by acquiring Kloud, mobility capabilities
the largest Workday deployment consultancy in that market  Buyers feel it should better assess the customer’s
 It increased its laser sharp focus on cloud-driven HRO by selling its readiness before implementing its solutions. It
RPO business to PeopleScout and absence administration business to should be more proactive in identifying quality
Reed Group issues and responding to them
 Its offerings seem to particularly suit buyers in the financial services
industry which contributes almost 50% of its revenue
 Reference customers have appreciated its domain knowledge, breadth
of offerings, and implementation capabilities
Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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Ascender
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 A focused HRO provider, Ascender is one of the Major Contenders on  Ascender, with its exclusive focus on Asia Pacific,
the MPHRO PEAK Matrix, and a strong force in the Asia Pacific region has to be prepared for tough turf battles when
 It is known for delivering transactional HR services exclusively in the global providers begin to focus on this high-growth
APAC region. Its strength in the payroll outsourcing market helps it market
acquire new customers in HRO as well  Limited capability in HR analytics and social &
 It has good delivery capabilities and market success in the learning mobile technology is a key gap
outsourcing market as well  Buyers feel that it should communicate better with
 It has capabilities to deliver large and complex multi-country deals its customers, especially during problem resolution.
 It announced a partnership with Workday, thus becoming one of They also opine that it has scope to improve its
Workday’s earliest APAC-focused payroll partners transition/implementation skills
 Its partnership with Ceridian strengthens its capability to cater to multi-
country payroll requirements of buyers with operations in Western
nations and APAC
 It has a balanced sourcing mix of offshore and onshore locations which
aids effective delivery
 Reference clients have cited its HR domain expertise, robust
escalation procedures, and flexibility as the key areas of strength

Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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Capgemini
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 Capgemini is a Major Contender on the MPHRO PEAK Matrix, with a  Capgemini’s planned shift towards stand-alone
good presence in the fast-growing APAC region MPHRO will require more focus on next-generation
 It thrives on multi-tower constructs where it combines HRO with FAO, technology capabilities specific to HRO in areas
PO, or ITO, though a strategic shift towards stand-alone MPHRO is on such as analytics, social, and mobility. A well-
the cards defined strategy, followed by execution, is the need
 It is investing heavily in RPA capabilities in multiple BPO areas, of the hour
including HRO, to drive process efficiency. Further, it has partnered  It should focus on strengthening its BPaaS
with UiPath to bolster its credentials in this area capabilities, which is increasingly becoming a
 It delivers a wide scope of HR processes and has a good delivery differentiator in the HRO market
presence across major onshore and offshore locations  Buyers feel that it should be proactive in sharing
 It is a service partner for Workday (Finance / HCM) implementation. It best practices and areas of improvements with
has also formed partnerships with ADP for payroll services and Unit4 them, and that it should improve standardization in
for ERP technology capabilities delivery
 Its offerings seem to particularly suit the manufacturing industry, with
almost 50% of its revenue accruing from that sector
 Clients value its relationship management capabilities, flexibility in
solution development, quality control, and responsiveness

Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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Capita
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 Capita is a Major Contender on the MPHRO PEAK Matrix and is  Capita’s target market is facing growth challenges.
primarily focused on the UK market Its strategy to start focusing on Continental Europe
 Its offerings seem to particularly suit the government sector in UK, with and the private sector to reduce concentration risks
more than 75% of its revenue accruing from that sector is a step in the right direction, though actual results
 Its recent spate of acquisitions in the RPO space such as those of have not yet materialized substantially
ThirtyThree, G2G3 and Security Watchdog, and in analytics such as  Its focus on social and mobility solutions is low
those of Barrachd and Write Research Company have strengthened its compared to peers
capabilities. They are also likely to help it target the private sector in  It has scope to become more cost-competitive by
the near future leveraging nearshore/offshore delivery locations
 It has innovated in pricing with a focus on outcome-based pricing. It  Buyers feel that it can improve management of
has experimented with constructs such as gainsharing based on third-party suppliers and be more proactive in its
reduced agency use. It also considers focus on outcomes rather than approach to innovation
cost savings as a key proposition of its HRO business case
 It leverages its position of strength in MSP and RPO to acquire new
HRO customers
 Reference clients have appreciated its customer service orientation,
flexibility, and high quality of staff

Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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CGI
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 CGI is one of the Major Contenders in the MPHRO PEAK Matrix with a  CGI needs to increase its visibility in the market
focus on Western Europe and North America with a clearly defined strategy and value proposition
 A key strength is its ability to serve the large market buyers, which is  Investment in analytics and social & mobility
borne out by the fact that more than 80% of its deals cover more than solutions is low, with existing offerings not gaining
15,000 buyer employees much traction
 U.S. state and local governments will likely find CGI’s offering  Its abilities to handle complex, multi-country, or
interesting, given its efforts to create tailored offerings for them multi-continent deals have not yet been proven with
 It delivers a wide scope of HR services from transactional to judgment- more than 85% of its deals being local and single-
intensive ones country
 It has partnerships with Workday, SuccessFactors, and Oracle Fusion

Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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Hexaware
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 Hexaware is a Major Contender and a Star Performer on the MPHRO  Hexaware seems to be heavily dependent on the
PEAK Matrix that grew considerably in the last year due to a major logistics industry in MPHRO. It has the potential to
deal signing target other similar industries to drive growth
 It has a well-balanced portfolio of large and mid-sized buyers in Asia  Investment in social & mobility solutions and
Pacific, Middle East, and United States analytics are found lacking
 It specializes in delivering multi-country deals, spanning both  Onshore support is extremely low which could
transactional- and judgment-intensive processes adversely impact effective delivery
 It has considerable experience serving the logistics industry  Lack of scale and lower capability in judgment-
 It has a strong partnership with Oracle Cloud. It is also an application oriented processes are its key gaps
management services-only partner of Workday
 It has strong ERP implementation and support capabilities, especially
on PeopleSoft
 It is one of the few players that is investing strongly in RPA in HRO
with a view to translate it to a strategic advantage

Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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HPE
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 HPE is a Major Contender on the MPHRO PEAK Matrix, with primary  HPE should start focusing more on growth
focus on Europe, earning almost 50% of its MPHRO revenue from that segments within HRO for which it has the potential
market to profitably serve, such as the mid-market in
 Buyers looking to bundle HR services either with multi-country payroll developed economies and BPaaS market. This can
or F&A services will find its offerings appealing help counter slowing growth in the large market in
 It has the capability to handle fairly large and complex deals, with developed markets
almost 90% of its deals being multi-country in nature  It lags in emerging areas in HR outsourcing, with
 It has strengthened its cloud and BPaaS capabilities by forging nascent capabilities in social, mobility, and HR
partnerships with Workday and CloudPay analytics
 It bolstered its HR contact center capabilities by developing a  It can enhance its offshoring/nearshoring leverage
partnership with Dovetail Software to improve cost competitiveness
 Its offerings seem to particularly appeal to the manufacturing industry,
which contributes about 50% of its MPHRO revenue

Note: The data used for this analysis was collected before the HPE-CSC merger
Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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IBM
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 IBM is a Leader and a Star Performer on the MPHRO PEAK Matrix  IBM should be wary of slowing growth in its major
and has one of the highest revenues in the market markets of North America & Europe and start
 It has a relatively balanced client portfolio across major geographies exploring faster growth areas. It has the opportunity
and is one of the most successful global majors in the APAC region to leverage its strong footprint in APAC to drive
 It remains one of the few providers with experience and capability to growth there. It can also target the U.S mid-market
manage wide-scope regional and global deals as well as local, single- after tweaking its delivery and commercial models
country deals to match the requirements of such buyers
 It continues to invest in its proprietary Watson technology and the  It should invest more in strengthening social and
Kenexa acquisition mobility capabilities
 It has partnerships with, and multiple customers on Workday and  While it has invested heavily in analytics, on-the-
SuccessFactors. It recently acquired Meteorix, a leading Workday ground implementation has scope to improve
services partner to further strengthen its Workday capabilities  Reference clients opine that the lack of flexibility
 Ability to combine process expertise with effective technology, and nimbleness of its internal organization
proactive attitude towards innovation, and relationship management sometimes prevents quick response to issues
are its strengths according to its buyers

Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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Infosys
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 Infosys is a Major Contender on the MPHRO PEAK Matrix, which  Relatively lower scale of business and limited
provides platform-based solutions primarily to buyers in the Asia process & geographic scope are some of its key
Pacific region. Australia is a key market gaps
 It has been fairly successful in combining its FAO and ITO deals with  Innovation in social and mobility solutions is found
HRO to offer multi-tower services lacking
 It has made initial investments in HR analytics, especially around  While it has been successful in smaller-sized
recruitment & payroll and also in RPA opportunities, its ability to win and execute large
 It has a good network of partners to strengthen delivery, the most deals (TCV > US$50 million) is still unproven
notable ones being SuccessFactors and Oracle Fusion for BPaaS  Buyers feel it needs to prioritize innovation, and
delivery generate new ideas to go beyond expected results
 It has found considerable success in the financial services industry,
deriving more than 60% of its MPHRO revenue from that sector
 Implementation capabilities and effective relationship management are
its key strengths according to reference clients

Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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MHR (formerly MidlandHR)
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 MHR formerly known as MidlandHR, is an Aspirant on the MPHRO  MHR currently has a completely onshore-based
PEAK Matrix, providing focused HRO services in the UK market delivery model which might place it at a competitive
 It offers services to mid- as well as large-market clients but its sweet disadvantage against players with a more balanced
spot lies in the lower-end of the mid-market segment shoring approach
 Its proprietary HRIS, that is bundled as part of MPHRO, covers the  Almost total dependency on the UK market
entire HR process pyramid, including transactional processes and exposes it to considerable concentration risks
more judgmental talent management processes  It has an opportunity to support UK-based clients
 While its overall portfolio of clients is skewed towards the public expand internationally and thus diversify its portfolio
sector in the United Kingdom, its portfolio for MPHRO is more
diversified in terms of industry and geography

Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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EGR-2016-3-R-1831
Neeyamo
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 A pure-play HR provider which grew considerably last year, Neeyamo  Neeyamo has scope to better market its technology
is a Major Contender on the MPHRO PEAK Matrix capabilities and merge it into its value proposition
 It has clients in all the major geographies of North America, Europe, more effectively
Asia Pacific, and Latin America  It should invest more to improve its social and
 Focused mainly on the mid-market, it has been able to deliver complex mobility solutions portfolio
and multi-country deals as well as local single-country ones  Buyers feel that it can improve process
 Its portfolio of augmentation solutions called HR discrete apps (which standardization and also focus on delivering results
include solutions such as onboarding management, HR letter beyond expected cost savings
generation) complements its HRO delivery effectively  Some buyers have also opined that it can work on
 It is pursuing a “long-tail HRO” strategy. Through virtualized HR bettering the stability of its tools and technologies
service delivery and flexible technology & pricing options, it provides
services to MNCs with a geographically dispersed workforce
 It has a strong global partnership with SuccessFactors for cloud-based
delivery, and also has a global platform for payroll services
 Reference clients consider relationship management, domain
knowledge, and high focus on security as its major strengths

Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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NGA Human Resources
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 NGA Human Resources is a Leader on the MPHRO PEAK Matrix and  Growth of MPHRO revenue has been a challenge
has one of the highest MPHRO revenues for NGA Human Resources over the past few
 The mature geographies of North America and Europe are its favorite years. To drive growth, it should focus on the faster
grounds with more than 85% of its revenue coming from them growing U.S mid-market as well as the Asia Pacific
 It caters to different buyer segments (mid-market, single-country, large market, possibly by using payroll services as the
market, multi-country, etc.) through targeted solutions starting point
 It primarily focuses on core HR processes – payroll, employee data  It has scope to further strengthen partnership with
management, workforce administration, and contact center. It is a Workday to drive cloud-based revenue
leader in the delivery of single-country as well as multi-country payroll  It should invest more in next-generation
services capabilities, especially around HR analytics
 It is actively investing in RPA to improve internal efficiency  Buyers feel its delivery is not consistent across
 Strong proprietary technology capabilities (Payroll Exchange and countries, with the cost of services varying widely.
euHReka), proven BPaaS solutions (especially on SuccessFactors), They also feel that there is potential to improve
and enabling augmentation tools are its key strengths focus on cost reduction
 It formed partnerships with Thomsons Online Benefits, thus
strengthening benefits capabilities
 Reference clients consistently praise its responsiveness, process
excellence, quality of talent, and focus on compliance & controls
Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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EGR-2016-3-R-1831
OneSource Virtual
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 OneSource Virtual is an Aspirant on the MPHRO PEAK Matrix that  OneSource Virtual has predominantly seen
has seen explosive growth over the past few years adoption of transactional HR services as part of
 Its business model is totally geared towards BPaaS delivery on MPHRO. It can target expanding the scope of
Workday. It has extensive experience on the platform and provides a services delivered, as Workday expands its scope
gamut of services on it including consulting, implementation,  Its delivery centers are all either in the U.S or UK. It
workforce administration, benefits, payroll, and finance & accounting has the potential to improve the cost effectiveness
 It primarily targets mid-market customers in the United States of delivery by leveraging nearshore/offshore
 It has a wrapper technology called Atmosphere that uses Workday centers
as the underlying System of Records and provides a suite of  Buyers feel that due to the rapid growth of the
augmentations that connect to Workday through APIs provider, the contact matrix has been in a state of
 It extensively leverages Workday’s analytics including predictive flux, which makes it difficult for them to reach the
analytics capabilities right person and solve issues quickly
 Reference clients have praised its customer service orientation and
relationship management

Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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TCS
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 One of the few Indian-heritage providers with the expertise to serve  TCS’ multiple technologies with overlapping scopes
mature as well as emerging geographies, TCS is a Major Contender seems to suggest a lack of coherent technology
on the MPHRO PEAK Matrix strategy. It has found limited success with platform-
 It has the capability to deliver multi-tower deals that combine based delivery models, primarily depending on the
ITO/FAO/PO with HRO client’s systems for delivery
 It has experience delivering services on on-premise platforms such as  Its ability to sign large deals (TCV > US$50 million)
SAP and PeopleSoft as well as on new-age SaaS such as Workday is still unproven
 It has multiple proprietary platforms such as TCS HCM Cloud and TCS  Though it has invested in analytics and social &
SAP HRMS for the broader HRO market, and DigiCorp for the public mobility solutions, on-the-ground implementation
sector market has potential to improve
 Its HR analytics capabilities have improved and includes both event-  Buyers feel that TCS needs to improve the
driven and ongoing offerings responsiveness of the mid-management and be
 It is actively investing in RPA in multiple BPO segments, including proactive in training associates
HRO, with a view to improve process efficiency
 Partnerships with varied vendors have helped it propel growth and
strengthen its HR technology portfolio
 Reference clients cite its process standardization, domain knowledge,
flexibility, and technology capability as key strengths
Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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EGR-2016-3-R-1831
Wipro
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 A Major Contender on the MPHRO PEAK Matrix, Wipro has found  Wipro has the potential to better leverage its
success in all the major geographies – North America, Europe, Middle foothold in the faster growing APAC region
East, & Africa (EMEA), and Asia Pacific  Its investment in social and mobility solutions can
 It has the capability to manage complex and multi-country deals as be improved
well as local single-country ones, mostly for large market buyers  Clients think that it needs to improve its internal
 Partnerships with major SaaS vendors, such as Workday and talent retention. They also feel that its account
SuccessFactors, have strengthened its HR technology capabilities management unit is spread too thin, which
 It leverages its Base))) technology to offer HR analytics. It also sometimes impacts relationship management
considers Base))) Harmony, the technology for knowledge capture
during transition, as an important part of their technology strategy
 Its strategy of opportunistically signing HRO services as part of multi-
tower deals continues to work
 Clients are particularly pleased with its ability to provide a transparent
view of their operations and improve cost effectiveness and flexibility

Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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WNS
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 WNS is a Major Contender on the MPHRO PEAK Matrix, and grew  WNS, being an Indian-heritage provider, has scope
considerably in the last year to further exploit the growth potential of the APAC
 It has found significant success in Europe and Middle East, with more region
than 90% of its revenue coming from these regions  It has scope to improve its cloud/BPaaS, social,
 It has made analytics a key piece of its strategy and has used it as a and mobile capabilities to differentiate offerings
precursor to full-blown HRO contracts. Besides analytics as part of  Buyers report a need for more focus on platform
HRO, it also offers stand-alone analytics as a service automation and more proactiveness in identifying
 It has the capability to deliver a considerably wide scope of processes issues and handling escalations
cost-effectively by leveraging traditional offshoring locations as well as
new ones such as Sri Lanka
 It has partnerships with varied technology vendors, especially
Workday, ADP, and Ramco
 Reference clients praise its flexibility and high accuracy with
transactional HR services

Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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EGR-2016-3-R-1831
Xerox
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 Xerox, a Major Contender on the MPHRO PEAK Matrix, has the  Xerox’s target markets are mature and growth will
experience and expertise to offer a wide scope of HR services increasingly become challenging there. Leveraging
 Its ability to deliver complex and multi-continent deals for the large its strength in North America, it should start
market in North America and Europe is a key strength focusing on the faster growing U.S mid-market
 It has built on a relationship with Oracle to develop a partnership with  Though it is investing in analytics, RPA, and social
cloud-based Fusion HCM. It also has experience delivering on & mobility solutions, on-the-ground implementation
Workday and SuccessFactors, as well as traditional platforms such as has scope to improve
SAP and PeopleSoft. It also offers an HR-as-a-Service solution that  It has the potential to increase the cost
has outcomes and not just cost savings as part of the business case competitiveness of its delivery model by improving
 It is investing strategically in developing HR analytics and RPA its offshoring leverage
solutions
 The manufacturing industry is its forte, with multiple large clients in this
industry constituting more than 50% of its MPHRO revenue
 It has established a partnership with Thomsons Online Darwin (for
benefits) and developed a slew of technologies such as Benefit Wallet,
Right Opt, and Savings Insight, which complements its portfolio of HR
solutions well

Source: Everest Group (2016)

Copyright © 2016, Everest Global, Inc.


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EGR-2016-3-R-1831
Zalaris
Everest Group assessment

Measure of capability: Best-in-class Not matured Leaders Major Contenders Aspirants

Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success

Strengths Areas of improvement


 Zalaris is a Major Contender and a Star Performer on the MPHRO PEAK  To drive further growth, Zalaris has the potential to
Matrix that targets the Nordic countries and has found significant success target a larger market. The strategy to expand its
there in the last few years coverage to Western Europe is a step in the right
 Buyers in this region, both mid-market and large-market ones, with multi- direction
country payroll and broader HR requirements will find its offering  Though centers in Eastern Europe and India are
appealing helping it reduce cost of delivery, it has scope to
 It has abilities to handle fairly complex, multi-country deals in the Nordics, offshore further
with a wide scope of processes including both transaction-oriented and  Its investment in emerging areas such as HR
judgment-oriented ones analytics and social & mobile technology is found
 It has a strong partnership with SAP and SuccessFactors and has lacking
established a SuccessFactors Center of Excellence. It is also open to
working on other SaaS platforms as well

Source: Everest Group (2016)

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Contents

 Executive summary

 Everest Group PEAK Matrix for MPHRO

 Everest Group’s remarks on service providers

 Appendix
– Glossary of key terms
– HRO research calendar
– References

Copyright © 2016, Everest Global, Inc.


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EGR-2016-3-R-1831
Glossary of key terms used in this report (page 1 of 2)

Term Definition
ACV Annualized Contract Value is calculated by dividing the Total Contract Value (TCV) by the term of the contract
Augmented model Service provider provides “add-on” tools to address specific gaps
Buyer The company/entity that purchases outsourcing services from a provider of such services
ERP An Enterprise Resource Planning software package integrates the functions of an enterprise to enable optimal
operations. These packages have functions for human resources, finance & accounting, purchasing, production
planning and scheduling, etc.
FTEs Full-time employees
Global buyers Buyers with operations and employees in multiple continents
Global deal Global deal refers to an RPO deal where delivery occurs in multiple continents
HRIS HR Information Systems are systems that enable a company to track employees and employee-related information
(e.g., name, contact information, department, and salary). HRIS includes reporting capabilities and some systems
that are interfaced to payroll or other financial systems
HRO Human Resources Outsourcing is the transfer of ownership of some or all human resource processes or functions to
a service provider. This could include administrative, delivery, or management-related processes or functions. HRO
deals include a minimum of three HR functions (e.g., payroll, benefits, and HRIS) covering 3,000 or more employees
LOA Leave of absence refers to an extended period of time during which an employee is out of the workplace (and the
employee’s related entitlements during that period)

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Glossary of key terms used in this report (page 2 of 2)

Term Definition
Local buyers Buyers with operations and employees in only a single country
MPHRO Multi-process HRO includes the transfer of a minimum of three HR functions (e.g., payroll, benefits, and HRIS)
covering 3,000 or more employees to a service provider
Platform model Pre-configured applications owned by the service provider, pricing built into the contract
PO Procurement Outsourcing is the transfer of ownership of some or all procurement processes or functions to a service
provider. This could include administrative, delivery, or management-related processes or functions
Regional buyers Buyers with operations and employees in a single continent
RPO Recruitment Process Outsourcing
SaaS Software-as-a-Service is a software that is deployed on Internet and/or is run behind a firewall in the local area
network or personal computer
Service provider A company/entity that supplies outsourcing services to another company/entity
SPHRO Single-process HRO. It includes the transfer of a single process or individual HR processes or functions
(e.g., benefits, compensation) to a service provider
Talent management Talent management includes recruiting, compensation, learning, and performance management
TCO Total Cost of Ownership
TCV Total Contract Value is the potential revenue associated with the transaction, and estimated at the commencement of
the contract (e.g., sum total of revenue accrued to the service provider from the transaction over the entire
transaction term, usually measured in millions of dollars)
Tie-and-run model Service provider plugs into buyer’s existing systems to deliver services

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HRO research calendar

Published Current

Topic Release date

MPHRO – Service Provider Profile Compendium 2015 December 2015

Analytics Business Process Services (BPS) – Analytics Goes Mainstream – Scope Expands Beyond
Traditional Clients and Offerings April 2016

Multi-Country Payroll Outsourcing (MCPO): A Must-check Buffet for MNCs in Asia Pacific April 2016

Robotic Process Automation in HR Outsourcing: Not the Same as Other Business Process Service Lines April 2016

Heralding a New Era of Transformative Business Process Services through Technology April 2016

Multi-Country Payroll Platform Assessment June 2016

Benefits Administration Outsourcing (BAO) – Service Provider Landscape with PEAK Matrix™ Assessment 2016 June 2016

Multi-Process Human Resources Outsourcing (MPHRO) – Service Provider Landscape


with PEAK Matrix™ Assessment 2016 August 2016

Benefits Administration Outsourcing (BAO) – Market Report Q3 2016

Benefits Administration Outsourcing (BAO) – Service Provider Profile Compendium Q3 2016

Technology in BPS - Service Provider Compendium 2016 Q3 2016

Technology in Business Process Services (BPS) – Service Provider Landscape Q3 2016

Global HR Trends Handbook 2016 - Innovation, technology, outsourcing, and vendors Q4 2016

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Additional HRO research recommendations

The following documents are recommended for additional insight into the topic covered in this report. The recommended documents provide
either additional details on the topic or complementary content that may be of interest:

1. Analytics Business Process Services (BPS) – Service Provider Landscape with PEAK Matrix™ Assessment 2016 (EGR-2016-10-R-1751);
2016. This study assesses the analytics business process capabilities of different service providers (legacy BPO providers and analytics specialists)
and evaluates their positioning on the Everest Group PEAK Matrix. It focuses on service provider position & growth in the market, changing market
dynamics & emerging service provider trends, and assessment of service provider delivery capabilities

2. Multi-Country Payroll Outsourcing (MCPO): A Must-check Buffet for MNCs in Asia Pacific (EGR-2016-3-R-1725); 2016. In this report, we look at
the maturation of MCPO – globally and within the Asia Pacific region – offering details regarding the circumstances driving growth and development. In
particular, we look at challenges enterprises in Asia Pacific face in implementing MCPO and specific steps organizations can take to create successful
MCPO outcomes in Asia Pacific

3. Multi-Process Human Resources Outsourcing (MPHRO) – Service Provider Profile Compendium 2015 (EGR-2015-3-R-1669); 2015. The
objective of this compendium is to provide key stakeholders a snapshot of the offerings and capabilities of the 20 major MPHRO service providers.
While service providers will be able to benchmark their areas of strength and those of development vis-à-vis other service providers in the marketplace,
buyers and potential buyers of MPHRO will be able to assess service providers on their desired set of capabilities

For more information on this and other researches published by Everest Group, please contact us:

Rajesh Ranjan, Partner: rajesh.ranjan@everestgrp.com


Anil Vijayan, Practice Director anil.vijayan@everestgrp.com
Arkadev Basak, Practice Director: arkadev.basak@everestgrp.com
Harsh Kundulli, Senior Analyst: harsh.k@everestgrp.com
Priyanka Mitra, Senior Analyst priyanka.mitra@everestgrp.com
HRO Team: HROresearch@everestgrp.com

Website: www.everestgrp.com | Phone: +1-214-451-3000 | Email: info@everestgrp.com

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About Everest Group

Everest Group is a consulting and research firm focused on strategic IT, business
services, and sourcing. We are trusted advisors to senior executives of leading
enterprises, providers, and investors. Our firm helps clients improve operational
and financial performance through a hands-on process that supports them in
making well-informed decisions that deliver high-impact results and achieve
sustained value. Our insight and guidance empowers clients to improve
organizational efficiency, effectiveness, agility, and responsiveness. What sets
Everest Group apart is the integration of deep sourcing knowledge, problem-
solving skills and original research. Details and in-depth content are available at
www.everestgrp.com and research.everestgrp.com.

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