HR Outsourcing has started to pick up again

The merger of AON Corporation and Hewitt Asaociates to form AON Hewitt as well as Northgate Arinso’s purchase of the HR capability of Convergsys made it the world’s largest outsourcer.

Everest Group is an advisor to business leaders on the next generation of global services with a worldwide reputation for helping Global 1000 firms dramatically improve their performance by optimizing their front-, mid-, and back-office business services. Established in 1991, Everest Group serve enterprises, providers of buiness services, country organizations and private equity firms in six continents across all industry categories.

Everest Group reported that spending on HR consulting in the first quarter of 2011 increased to 11% of the total amount spent on consulting.  Everest suggest that things are starting to pick up again in the multi-process HRO market and growth wil be in the range 8-10%.

One of their findings is that the market in Europe has moved towards more of a “best-of-breed” model.  So the likes of ACS, IBM and Accenture are being invited to do single process outsourcing versus bidding for large-scale opportunities.

The global multi-process HR Outsourcing [HRO] market is projected to grow to about $3.35 billion this year.

Everest Group’s Performance / Experience / Ability / Knowledge (PEAK) matrix classified Accenture, ADP, NorthgateArinso, Aon Hewitt and IBM as market leaders that further strengthened their positions. Everest classified ACS Xerox, Capgemini, Capita, Ceridian, HP, Infosys, Logica, TCS,Wipro, and Caliber Point as major contenders. Also classified in the report are emerging players Genpact, HCL, Neeyamo and Xchanging.

Everest Group also highlighted five service providers as 2010 MPHRO Market Star Performers: ADP, Accenture, NorthgateArinso, Aon Hewitt and Infosys. Last year, these service providers demonstrated the strongest movement forward across the following two dimensions:

  • Market success in 2010 based on ACV growth, number of contract signings and value of contract signings last year
  • Capability advancements in 2010 based on expansion of scale, scope, delivery footprint and technology investments
Dale Stara, Engagement Director, discusses Everest Group’s IT Transformation methodology

David Andrews – Xchanging

Many years ago I had the privilege of sitting next to David Andrews at a fund raising dinner for Glamorgan CC in the Long Room at Lords Cricket Ground. He was very engaging, extremely passionate about his work and he clearly had tremendous intellectual firepower.
Xchanging was founded in 1999, by David Andrews, a former partner in Andersen Consulting. Andrews came up with the idea to create joint ventures with large multinationals to outsource the processing of back-office transactions. Xchanging created a number of Enterprise Partnerships with blue chip clients [BAE Systems, Lloyd’s of London, Deutsche Bank, Allianz GI, Aon and SIA-SSB]. On 8 February 2011, David Andrews decided to step down from the Board and from the role of Chief Executive Officer taking on a new role as Senior Adviser to the Chairman to support the company’s business development initiatives.
David Andrews interview – July 2008

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