HfS Blueprint Report - Accenture · The Talent Acquisition Services HfS Blueprint Report is the...

Architects of Global Business

HfS Blueprint ReportTalent Acquisition Service Providers – Partners on the Path to Total Talent ManagementExcerpt for Accenture

August 2014

A Comparative Analysis of the Evolving Global Recruitment Process Outsourcing (RPO) and Contract Labor Vendor Managed Service Provider (MSP) Marketplace

Christa Degnan ManningSenior Vice President, Global Workforce and Talent Strategies [email protected]

© 2014 HfS Research Ltd. Proprietary │

Table of Contents

Topic Page

Executive Summary and Scope 3

Research Methodology 18

Service Provider Capabilities 25

Service Provider Profile 32

About the Author 34

Executive Summaryand Scope


Introduction to the HfS Blueprint Report: Talent Acquisition Services

The Talent Acquisition Services HfS Blueprint Report is the second application of HfSBlueprint methodology in the Workforce Support Services arena. Going beyond theadministration of traditional human resource functions and processes, Workforce SupportServices include the acquisition, development, reward and recognition, and collaborationand connection of workers today, regardless of employment status (i.e. full time, contingent,outsourced staff.) This reorientation from HR function and processes to supporting theworker is to help companies improve peoples’ productivity, engagement, and overallcontributions to achieving business outcomes today.*

Unlike other quadrants and matrices, the HfS Blueprint identifies relevant differentialsbetween service providers across numerous facets in two main categories: innovation andexecution.

HfS Blueprint Report ratings depend on a broad range of stakeholders with specificweightings based on 1,355 crowd-sourced responses. Stakeholders include:

Enterprise Buyers Service Providers Industry Influencers (sourcing advisors) HfS Analysts

* For more information, see “Reorienting HR to Create the Employee Experience,” HfS Research May 2014.

http://www.hfsresearch.com/reorienting-hr-to-create-the-employee-experience


Talent Acquisition Services Definition

HfS defines Talent Acquisition Service providers as those third-party firms that support companies in thestrategy, sourcing, and engagement programs and processes required to attract and activate workers asbusinesses desire today.

Talent Acquisition Service delivery is evolving from the traditional recruitment process outsourcing (RPO) andcontingent or contract work managed service providers (MSP) worlds as companies seek access to more flexiblelabor pools and talent sourcing and management support models as well.

This market did not emerge from a vacuum, however, so the service provider relationships in place for talentacquisition evaluated for this study may have been intertwined with BPO arrangements in multi-process humanresource outsourcing (HRO), indirect procurement service delivery, or broader back office arrangements led byfinance or IT. Some relationships come from traditional recruiting and staffing firm client expansions.

Neverthetheless, the competitive skills and geographic dynamics of today’s labor markets as well as thecomplexity of matching people to the right roles in the right company at the right time is requiring new formsof sophisticated specific Talent Acquisition capabilities expertise, technologies, and staff.

This means some early multi-HRO service providers are opting out of the Talent Acquisition marketplace, whileothers are doubling down. New entrants are also emerging specifically to deliver technology-enabled talentacquisition services that support overall talent management excellence and agile business outcomes.

This report seeks to put a stake in the ground around this evolving space and to help define what progressiveTalent Acquisition Service delivery will mean and how it fits in with in the context of Workforce SupportServices and technology-enabled business services overall moving forward.


The Workforce Support Services Map: Engaging and Empowering Workers

This Blueprint Focuses on Talent Acquisition Services

“EMPLOYEE”EXPERIENCE

• Central support with omnichannelcommunication mechanisms

ACQUIRE

ENABLECONNECT

REWARD

• Collaboration• Travel• Mobility

• Knowledge Management

• Development• Assessment

• Payroll• Benefits• Other Rewards

• Strategy• Source• Engage

RELATIONSHIPS

PRODUCTIVITY

MISSION

MOTIVATION

What am I doing?

Why am I doing it?

Who am I doing it with?

How am I getting it done?


Acquiring Talent Today Involves Attraction and Retention

Strategy Source Engage

Acquire

Progressively supporting a company in talent acquisition services todayrequires service providers be involved in labor strategy – from understandingwhat the business needs and where and how workers are available to meetthose needs – through finding and securing the talent through modernsourcing methods. Increasingly identifying the factors that make sure a workeris a good match and will be motivated to ultimately support the business indelivering results – engaged – is also a key part of the capabilities anddifferentiation delivered by service providers today.


The Candidate Experience Leads to the Employee Experience

As the workplace and the workforce have been changing dramatically, companies are desperateto acquire engaged, productive, and resilient workers. To attract people to open positions andwin the best talent, organizations have increasingly been focused on their “employer brands,”“employer value propositions” and “the candidate experience” during the recruiting and hiringprocesses. This calls for new roles and skills in marketing and communication, creative sourcingsolutions, and compelling change management capabilities.

Yet this also means companies increasingly need to worry about the experience of what it is liketo actually work for and within their companies as well. This is pulling service providers whosupport talent acquisition processes further into talent management operational supportservices. It also leaves internal HR staff the need to focus on the key things they can influence todeliver a good employee experience:

Workforce strategy Company culture Leadership and career development

This means more companies are looking to third-party service providers to support them inthese higher value talent acquisition and talent management activities and initiatives beyondsimple candidate sourcing and requisition filling today.


Workforce Support Services Details – Elements of Acquire

HfS Value Chain Definition: The Workforce Support Services value chain refers to the series of functions, departments, or programs that carry out value-creating activities to support a company’s workforce, from talent acquisition through day to day productivity enablement, as well as on-going motivation, engagement, and retention or relationship with the worker over time. In this Blueprint evaluative usage, we refer to the value chain as the range of processes and support services that providers offer to their clients, in this case across the talent acquisition sub-spectrum of Workforce Support Services.

Plan

• Workforce planning• Hiring strategy• Labor type decision

support• Employer brand value

proposition development

• Risk mitigation and compliance

• Diversity planning• Change management• Role development and

administration• Career progression

mapping • Succession planning• Continuous

improvement

Search

• Recruitment marketing• Social media marketing• Full time staff search• Specialty role search (IT,

finance, craft, etc.)• Contract labor search• Freelance self-employed

labor search• College recruiting• Intern recruiting• Consultant (statement

of work) search• Executive search • Board member search• Candidate solicitation• Referral program

management

Coordinate

• Applicant tracking• Candidate

management• Assessment

refinement• Interview scheduling• Audio/video

interview facilitation• Candidate in-person

travel administration• On-site facilitation• Reference checking• Background checking• Compliance

reporting• Offer development• Contracts

Assign

• On-boarding• Start date

readiness• Company

culture indoctrination

• Internal social network facilitation

• External social network facilitation

• Quality of hire evaluation

• SOW milestone monitoring

Supply

• Alumni talent pool administration

• Passive candidate cultivation

• Passive candidate pool administration

• Professional employment services

• Pre-qualified sub-contracted supplier community

Acquire

Identify

• Internal talent assessment

• External talent assessment

• Hard skills assessment

• Soft skills assessment

• Job description crafting

• Market mapping• Workforce

segmentation

Strategy Source Engage

Talent Acquisition – Key Areas of Service Provider Value


The Era of the Extended Enterprise Demands Broader Talent Acquisition Capabilities Across Types of Labor Too

Just as acquiring talent has expanded to cover strategy and engagement, it has also expanded to cover a broader segment of the workforce: contract and contingent workers.

More and more types of people contribute in organizations today, from contractors to consultants and even staff at outsourced service firms – HfS calls this the “extended enterprise.”

This means traditional HR “hire-to-retire” processes and a sole focus on the full time worker today are incomplete if not obsolete. Workforce Support Services including Acquisition must also take into account how the extended enterprise fits in with their activities as well.


The Workforce Support Services Map: Engaging and Empowering the Workforce of the Extended Enterprise as Well

This Blueprint Focuses on Contract and Traditional Staff Labor Acquisition

“EMPLOYEE”EXPERIENCE

• Central support with omnichannelcommunication mechanisms

Acquire

ENABLECONNECT

REWARD

• Collaboration• Travel• Mobility

• Knowledge Management

• Development• Assessment

• Payroll• Benefits• Other Rewards

• Strategy• Source• Engage

RELATIONSHIPS

PRODUCTIVITY

MISSION

MOTIVATION

What am I doing?

Why am I doing it?

Who am I doing it with?

How am I getting it done?

TheCrowd

SoWConsultants

OutsourcersPartners

Contractors

Traditional workersStaff

Increasingly different types ofworkers will be consumers ofworkforce support services.

Different types of staff will alsobe used to deliver workforceservices and require access tosystems and services as well.


The Workforce Support Services Map: Engaging and Empowering the Workforce of the Extended Enterprise

TheCrowd

SoWConsultants

OutsourcersPartners

Staff

Contractors

Increasingly different types ofworkers will be consumers ofworkforce support services.

Some different types of staff willalso be used to deliver workforceservices and will require access tocertain systems and services aswell.

This report looks at Talent Acquisition Services support areas for both traditional staff and

contract workers.

Look for these symbols in the Service Provider Profiles to understand what kind of labor the

service provider is able to support.


Key Highlights – State of Talent Acquisition Services

A Converging and Expanding Market Poised for Global Growth. Companies that cut back on hiringand related HR support staff during the recession now need to add people back to the business andare looking for service providers with workforce market supply and demand knowledge and expertiseto fill the gaps. While all buyers need a service provider to execute on finding, attracting, andretaining workers today, many want a firm to help advise on the right talent approaches – anincreasing number asking for permanent and contingent labor support – and to advise on theavailability of that labor in different places around the world to support business and workforceplanning.

A Heterogeneous yet Somewhat Hesitant Market. The 13 service providers we evaluated for thisBlueprint come to the Talent Acquisition in different ways. Some come from a multi-process HROorientation, some from broader ITO/BPO, and others are relatively new entrants who target globaltalent acquisition specifically. We also identified 8 service providers primarily from the traditionalstaffing arena that we include short profiles on as full market context. These service providers willhave to embrace new scrutiny as they ultimately compete against the breadth of technology-enabledbusiness service providers investing in this space.

Talent Acquisition Services Is Changing and Increasing Incrementally. While a number of long-termtraditional outsourcing type contracts were analyzed as a part of this research report, more and morecompanies are seeking to buy services in shorter contract durations, including flexible project-initiated ways, with an eye to expanding to broader on-going service delivery as their needs dictate.They are also having discussions with their partners to add additional capabilities and technologiesand many are open to new business and pricing models.



Talent Acquisition is Tip of the Spear to Workforce Transformation. To deliver value beyond costtake out through simple administrative labor arbitrage, talent acquisition service providers are nowbeing tasked with partnering with clients to acknowledge – and in many cases address –fundamental workplace and workforce issues beyond simply posting requisitions and screeningworkers that impact quality of hire and company performance through approaches such as culturematch and soft skills assessments. From competitive pay data benchmarks and labor mapping toidentifying employee engagement elements and career development initiatives, the bar is beingraised against which service providers are being evaluated, but it also means buyers have to changehow they may operate and treat people in order to secure and retain the best workers today.

Transparency and Trust across Talent Teams. With the stakes being raised to capture businesstransformation impact from talent acquisition services, more and more buyers say they arecollaboratively partnering with service providers who they see as an extension of their ownorganizations, in many cases in a way that is completely transparent to their candidates andemployees. In this way, talent acquisition buyer/service provider partnerships are exhibiting theacknowledgement and commitment to Workforce Support Service orientations, where they activelywork to culturally match the staff on their accounts with the client, find ways to motivate andreward extended teams based on a joint mission to drive business outcomes, and to provide waysthey can connect across their organizations and regions as an extended enterprise.



Two Takes on Technology. As most early RPO and MSP engagements were tactical andadministrative in nature, buyers of services often asked their service providers to use the buyer’sinternal enterprise applicant tracking systems (ATS) and contract labor vendor management systems(VMS); others were open to suggestions from their providers or to interact with their proprietarysystems if they had to. Today the market is still split on technologies, some not expecting muchbeyond what they offer to their service provider staff, others who want new technologies andinnovations brought to them part and parcel of the contract. Notably some of the latter are vocalabout who should pay for access to technologies if the service provider team can and should beable to benefit from their investments in new solutions across their customer bases. The use oftechnology will be a deciding factor in the future success of the Talent Acquisition space.

Who Owns the Candidates or Communities? As more technologies are brought to bear to collectand nurture individuals as passive talent and companies spend more in developing their“employment brands” and “employee value propositions” that will attract people to these talentcommunities, there is debate on who owns access to that talent. While companies traditionallywent to recruiting and staffing agencies for their “rolodexes” of contacts, as the market evolved intraditional outsourced business process fashion, there were relatively strict rules around candidatesand applicants being segregated by client. For altruistic reasons some buyers are allowing theestablishment of shared talent pools: for veterans, for example, or for hard to source or high turnover areas where it behooves them to share those people back into a community that they may beable to tap in the future. HfS expects this to be a continuing area of debate and concern but thatultimately social media will bring a level of transparency that favors candidates and workers andcompanies will have to offer real value to any closed talent pool.


Future of the Talent Acquisition Services Market – Current Trends and Likely Impacts for Buyers

Trends Impacting Talent Acquisition Today

What This Means for Buyers

Talent globalizing Will have to reorganize and realign to facilitate true global operations and allowmore internal talent mobility. Will have to address establishing equitable internal cross-region programs, policies, and practices.

Workforce fluidity increasing Will have to understand labor markets and be open to how workers want to engage with them either as traditional staff, contractors, or in other flexible ways such as contract to permanent. Will face increasing regulatory scrutiny.

Talent attraction challenging Will have to work on building and maintaining employer brand and value propositions and maintain integrity between those and the employee experience of working there, particularly over time and through company changes, such as merger and acquisitions and new region openings.

Technology innovation pace quickening

If they want to access it and/or stay current on it, will have to pay for it themselves or in higher service provider fees. Also will have to be prepared to help their own staff to understand its value to use and apply it, for example establishing and cultivating talent communities, with their service partners.

Workforce engagement and retention waning

Will have to be open to company change – including cultural – after understanding internal labor dynamics, the external marketplace, employee experience integrity, and what is needed to compete for talent and get results from people in a sustainable way. Will have to provide more seamless support.


Future of the Talent Acquisition Services Market –Current Trends and Likely Impacts for Service Providers

Trends Impacting Talent Acquisition Today

What This Means for Service Providers

Talent globalizing Will have to deliver broader, more complex, and seamless support experiences to align with new organizations and approaches from both the front office –candidate and hiring manager perspective – as well as the back office – account management, operational support, and billing.

Workforce fluidity increasing Will have to help customer build the internal bridges between HR, procurement, even finance and IT, as they offer technology-enabled business services to find and deploy traditional staff and contract labor across extended enterprises.

Talent attraction challenging Will have to invest in capabilities in employer branding, marketing, communications, and change management to help attract the right people and turn passive candidates into active applicants. Also be willing to offer flexibility in service delivery, even project-based support, to prove longer-term value.

Technology innovation pace quickening

Will have to negotiate with Software as a service (SaaS) solution vendors to use their new technologies broadly across clients or resell. They will also need to be very proactive trying new tools and partnerships to deliver efficiencies and/or incremental innovation clients can find value from to renew and expand accounts.

Workforce engagement and retention waning

Will have to bring new capabilities in terms of helping clients establish a desirable workplace environment and company culture as well as individual worker assessments and measurements of impacts on the business. To this end, will have to have the data, analytics, and expertise to back up their advice.

Research Methodology


Research Methodology

Data Summary More than 4,000 data points were collected from 250+ live

contracts from 13 major service providers, as well as secondary research on 8 additional service providers in talent acquisition services businesses worldwide.

Data was collected in Q2 of 2014, covering buyers, providers, advisors, and users of Talent Acquisition Services.

Participating Service Providers

Tales from the Trenches: Interviews with buyerswho have evaluated service providers andexperienced their services. Some are supplied byservice providers, but many are interviewedthrough interviews conducted with HfS ExecutiveCouncil members and participants in ourextensive market research.

Sell-Side Executive Briefings: Structureddiscussions with service providers were intendedto collect data necessary to evaluate theirinnovation, execution, market share, and dealcounts.

HfS “State of Outsourcing” Survey: Theindustry’s largest quantitative survey, conductedwith the support of KPMG, covering the views,intentions, and dynamics of 1,355 buyers,providers, and influencers of outsourcing.

Publicly Available Information: Financial data,website information, presentations given bysenior executives, and other marketing collateraland information in the public domain.

This Report Is Based On:

Additionally Profiled Service Providers


Key Factors Driving the HfS Blueprint

Evaluation Criteria

Two major factors:

• Execution represents service providers’ ability to deliver capabilities. It includes:

– Solutions in the Real World– Quality of Customer Relationships– Flexibility

• Innovation represents service providers’ ability to improve services. It includes:

– Vision for End-to-End Process Lifecycle

– Concrete Plans to Deliver Value Beyond Cost

– Leveraging External Drivers

Criteria Weighting

Criteria are weighed by crowdsourcing weightings from the four groups that matter most:

• Enterprise Buyers (revenues >$5B) (20%)• Buyers (20%)• Service Providers (30%)• HfS Research Analysts Team (20%)• Advisors, Consultants, and Industry

Stakeholders (10%)

Weightings from this report come from HfS’s 2013 State of Outsourcing Study


HfS Blueprint Scoring Percentage BreakdownEXECUTION 78.91%Quality of Customer Relationships 33.99%

Quality of Account Management Team 12.63%How Service Providers Engage Customers and Develop Communities 10.78%How Service Providers Incorporate Customer Feedback 10.58%

Real-World Delivery Solutions 21.06%Actual Delivery of Services for Each Sub-Process 8.23%

Strategy 1.53%Talent Identification 2.25%Source 2.25%Engage 1.10%Supply 1.10%

Geographic Footprint and Scale 3.18%Usefulness of Services to Specific Client Needs of All Sizes 8.01%

Flexibility to Deliver End-to-End Solutions and Point Solutions

3.79%

Experience Delivering Industry-Specific Solutions 4.58%

Flexible Pricing Models to Meet Customer Needs 23.86%

INNOVATION 21.09%Vision for End-to-End Process Lifecycle 5.76%

Concrete Plans to Deliver Value Beyond Cost and Investment in Future Capabilities 2.67%

Integration of Technology Into Business Process 2.02%Continuous Improvement Methodology and Capability 1.07%

Vision for Industry-Specific Solutions 9.72%Ability to Leverage External Value Drivers 5.62%

Leverage New Technology, Security, Social Media, Mobility, and Cloud Capabilities 3.98%

Incorporate Regulatory Requirements Quickly and Proactively 1.63%

TOTAL 100.00%


Execution Definitions

EXECUTION How well does the provider execute on it's contractual agreement and how well does the provider manage the client/provider relationship?

Quality of Customer Relationships How engaged are providers in managing the client relationship based on the following metrics: quality of account management, service provider / client engagement, and incorporation of feedback?

Quality of Account Management Team What is the quality level of professional skills in the account management team?

How Service Providers Engage Customers and Develop Communities

How well does the service provider engage clients and develop client communities?

How Service Providers Incorporate Customer Feedback

How have service providers taken feedback and incorporated that feedback into their product/solution?

Real-World Delivery Solutions Does the solution provided compare favorably to the service agreed upon when taking into account delivery of services for each sub-process and geographic footprint and scale?

Actual Delivery of Services for Each Sub-Process

Taking into account each sub process and the entire macro process, does each sub-process sum to successful delivery of the service being provided? For example in the Finance and Accounting macro process of Order to Cash, are all sub-processes being delivered upon successfully?

Geographic Footprint and Scale Specific to the category, to what degree do service providers have geographic locations that offer strategic value and do they have scale?

Usefulness of Services to Specific Client Needs of All Sizes

How flexible and experienced are providers when tailoring solutions based on client size, location, and type of solution (end-to-end and single point)?

Flexibility to Deliver End-to-End Solutions and Point Solutions

How flexible are providers with delivering multi-process end-to-end solutions vs. single point solutions?

Experience Delivering Industry-Specific Solutions

How well does the provider deliver industry-specific solutions? For example (Healthcare, Insurance, Financial Services)

Flexible Pricing Models to Meet Customer Needs How flexible are providers when determining pricing of contracts?


Innovation Definitions

INNOVATION Innovation is the combination of improving both services and business outcomes.

Vision for End-to-End Process Lifecycle The strategy for delivery services to each part of the processes "value chain". For example, in Finance and Accounting, the components of the value chain may include order to cash, record to report, and procure to pay. In Customer Relationship Management, the components may include outbound service, inbound service, quality, training,, call routing, self service, and customer insights/analytics.

Concrete Plans to Deliver Value Beyond Cost and Investment in Future Capabilities

Clear understanding of what value levers exist and how the service provider will deliver that value. Examples of value may include labor arbitrage, technology, analytics, quality, revenue, global scale, and flexibility.

Integration of Technology Into Business Process

How the service provider integrates applications with manual labor to improve value to clients. Service providers may provide cloud-enabled technology, SaaS, workflow, or analytics applications.

Continuous Improvement Methodology and Capability

How well does the provider execute on improving business process and capabilities of their solutions?

Vision for Industry-Specific Solutions Does the provider have a vision for services specific to certain industries?

Ability to Leverage External Value Drivers How well have providers integrated external value drivers into their services? Examples include: cloud solutions, security enhancements, incorporation of regulatory changes, and use of new collaborative tools.

Leverage New Technology, Security, Social Media, Mobility, and Cloud Capabilities

How well does the provider leverage new technologies / enhancements, mobility functionality, and cloud capabilities into their solutions?

Incorporate Regulatory Requirements Quickly and Proactively

How well does the provider incorporate the latest regulatory requirements and proactively integrates future regulatory requirements?


Winners Circle and High Performers MethodologyTo distinguish providers within a particular line of delivery, HfS awards a “Winner’s Circle” or “High Performer” designation. Below provides a brief description of the general characteristics of each designation:

Winner's Circle: Organizations that demonstrate excellence in both execution and innovation.

From an execution perspective, providers have developed strong relationships with clients,execute services beyond the scope of hitting green lights, and are highly flexible whenmeeting clients’ needs.

From an innovation perspective, providers have a strong vision, concrete plans to invest infuture capabilities, a healthy cross-section of vertical capabilities, and have illustrated astrong ability to leverage external drivers to increase value for their clients.

High Performers: Organizations that demonstrate strong capabilities in both execution andinnovation, but are lacking in an innovative vision or execution against their vision.

From an execution perspective, providers execute some of the areas with excellence, but notall areas: high performers have developed worthwhile relationships with clients, executetheir services and hit the green lights, and are flexible when meeting clients needs.

From an innovation perspective, providers typically execute some of the following areas withexcellence, but not all areas: have a vision and demonstrated plans to invest in futurecapabilities, have experience delivering services over multiple vertical capabilities, and haveillustrated a good ability to leverage external drivers to increase value for their clients.

Service Provider Capabilities


AccentureADP

Aon Hewitt

Cielo

HP

IBM

KellyOCGNeeyamo

Peoplescout

Seven Step RPO

TCS

WilsonHCG

WNS

INN

OVA

TIO

N

EXECUTION

HfS Blueprint 2014: Talent Acquisition Services

High Performers

Winner’s Circle


EXECUTION

• KellyOCG Targets Total Talent Acquisition Globally (Winner’s Circle)

– Across types of labor and around the world, KellyOCG was recognized by clients as far along the path to total talent acquisition support and services execution excellence worldwide.

– The greatest challenge for KellyOCG is in managing its own talent to consistently support clients’ new global talent acquisition service expectations.

• The RightThing! Represented Responsiveness (Winner’s Circle)

– Companies who worked with the RightThing cited the company’s customer-centricity and commitment to treating an outsourcing relationship like a mutual partnership to achieve consistently positive results.

– The RightThing’s big challenge is the perception of how it may change as a result of the ADP acquisition into a more bureaucratic or inflexible organization.

• Seven Step RPO Steps Up to High-touch (Winner’s Circle)

– Seven Step has been able to learn from early RPO mistakes made by others to craft a progressive advisory partnership model for talent acquisition.

– Its main challenge is taking this recognized high-touch model forward geographically, beyond traditional labor hires, and more fully into workforce strategy support.

INNOVATION

• Cielo Setting New Standards for Service (Winner’s Circle)– Client references recognized Cielo as visionary in the talent acquisition space,

clearly outlining new talent management ideas and acquisition solutions as it expands capabilities into additional regions and talent support areas that impact quality of hire and business objectives of internal mobility and retention.

– The greatest challenge for Cielo is to scale its own operational capabilities alongside its client services expansion and delivery innovations.

• Accenture Strategy Insights and Influence Redefine Success (Winner’s Circle)– Clients site Accenture’s ability to understand longer-term business and talent

needs and trends as instrumental in allowing it to deliver value beyond cost and impact improved business and talent goals alike such as company agility and worker time to productivity.

– Its challenge is to help clients consume its higher value-added services consistently in cost-containment or locked-down technology environments.

• WilsonHCG Hones in on Workforce Planning and Hiring Experience (Winner’s Circle)– WilsonHCG customers report its workforce planning approach is differentiating in

helping to drive talent acquisition transformation thinking in support of business objectives as well as achieving traditional hiring outcomes such as time to fill.

– Its biggest hurdle is to make sure that hiring managers and business partners think and act as progressively as it does in terms of talent acquisition service delivery and business partnership.

• Neeyamo Focused and Flexible (Winner’s Circle)– Neeyamo’s dedication to technology-enabled human resource outsourcing

services, coupled with its extreme flexibility and responsiveness with clients is what made it a leader on the Innovation axis.

– Its main challenges are establishing a global presence in both go to market and delivery capabilities and building credibility with larger companies over time.

Major Service Provider Dynamics – Highlights


1. Understanding Value Beyond Cost from Business Operations

Focusing less on the “How” and more on the “What” to achieve business outcomes

3. Reorienting and Redefining Operations Talent

Instilling a progressive approach to acquiring, developing, and motivating

talent

2. Integrating Services Across the Extended Enterprise

Achieving greater control and visibilityover operations across the extended

enterprise

4. Leveraging Technology to Enable Better Outcomes

Finding new value from collaborative, automated, analytical, mobile-enabled

business processes

HfS Four Principles of Progressive Operations

HfS Principles of Progressive Business Operations Today


Talent Acquisition Services Far on the Path to Value

What buyers are expecting in terms of:

Understanding Value Beyond Cost from Business Operations

Integrating Services Across the Extended Enterprise

Reorienting and Redefining

Operations Talent

Leveraging Technology to Enable Better Outcomes

Strategy Guidance on how labor is aligned with business strategy, operational plans, and external talent dynamics and markets

Decision support for traditional staff and contract labor approaches and optimal mixes

Subject matter expertise in labor markets, sourcinginnovations, regulatory environments, data

Data collection, cleaning,augmentation, analysis, and predictive recommendations, including new technologies to use for talent management

Source Cultivation of passive talent communities and competitive intelligence market maps and plans

Ability to access and deploy talentregardless of employment status

Industry, role, and geo-specific sourcing and recruiting experts

Access to latest social media and relationship management creative and communication capabilities and tools

Engage Identifying and/or validating how people want and like to work for a company and why, advising on trends in demographics, regions, etc.

Monitoring workforceperformance/progress after hire/contract and satisfaction with services/solutions

Engaged and motivated extended enterprise teams that reflect client culture, vision, and values

Seamless candidate to employee online experiences, including mobile and socialplatforms integrated with other enterprise systems/apps

Recruiting is one of the oldest “outsourced” business services, as for a long time companies have paid fees toexternal agencies when needing to hire new people. In the last decade, “recruitment process outsourcing” and“managed service providers” evolved in ways just like other forms of BPO to transfer talent specific andadministrative roles to third-parties. Today, however, the marketplace is evolving to more comprehensive yetflexible operational service delivery, with capabilities focused on delivering both cost-efficiency and effectiveness,increasingly through the use of new social sourcing, SaaS, mobile, and data analytics technologies.


Context: Operations Leaders Expect to Leap to Tech-enabled Ops – Talent Acquisition Partnerships are Reflecting this Adjustment

49%

23%28%

26% 26%

49%

A "lift and shift" of people and existingprocesses, with limited transformation ofprocesses or their enabling technologies

A genuine transformation of businessprocesses, but limited use of technology

A wide-scale transformation of businessprocesses enabled by new technology tools /

platforms

Today 2 Years' time

Progressive Shift in How Services are Delivered

State of BPO Engagements today and expectations for 2 years time

Source: HfS Research, 2014. Sample = 189 Major Enterprises


Context: BPaaS is Replacing Legacy Outsourcing Fastest in HR

2%

4%

6%

9%

11%

14%

15%

20%

22%

16%

13%

6%

9%

19%

12%

17%

8%

8%

37%

23%

29%

24%

28%

37%

37%

35%

39%

45%

60%

58%

59%

42%

37%

31%

37%

31%

Marketing

Legal

Supply Chain and Logistics

Sales

Procurement

Customer Service/Support

Finance and Accounting

Industry-specific Operations

Human Resources

We have at least one cloud-based service for this functionStarting to evaluate / test solutionsWe are interested but yet to find anything suitableNothing in place & see no value

Technology replacements are playing key role in future of Talent Acquisition marketplace.

Q. In what areas are you considering cloud / as-a-service options to augment / replace traditional outsourcing?

Source: HfS Research State of Industry Study June 2014, conducted in conjunction with KPMG (Sample 312 Enterprises)

Service Provider Profile


Winner’s Circle

Relevant Acquisitions/Partnerships Key Clients Global Operations Centers Technology Offered

• In 2013, Procurian acquisition brought expertise in manufacturing, consumer goods, high tech, and financial services as well as key analytics and tech assets to manage categories of spend, including labor.

• Also in 2013, ChangeTrack Research Pty Ltd brought analytics-based tools and services for change management.

53 clients• 50 large enterprise, including 24 ranked in

the Fortune 500• 3 mid-market ($100 M to $1 Billion in

revenue)

Headcount: 2,600

Locations:• Core centers in Brazil, China, Czech

Republic, India, UK, and US.• Supporting centers in Italy,

Romania, South Africa, and Spain.

• SAP SuccessFactors, Oracle Taleo Recruiting Cloud Service, Avature CRM, HireVue video interviewing, SearchAll resume search,

• IQNavigator, Fieldglass, and Beeline VMSs• Beta testing BoldChat to embed live chat into Taleo

career sites, Virtual IVR, and Interview App for interview logistics

• BPO Navigator, SaS, Tableau and Accenture RADIX for outsourcing and analytics support

Strengths Challenges

• Workforce strategy and planning. Even where Accenture has been contracted to fulfill what may be considered a tactical set of activities such as contract labor managed services, it is bringing market intelligence, savvy sourcing skills, and data, insights, and influence with contractors to help hiring managers and business partners understand longer term talent trends and impacts of their hiring decision making processes. This includes reducing overall hires, an outcome few rival staffing-driven firms are paid to pursue.

• Geographic Footprint And Scale. With one of the broadest delivery networks in the market, Accenture has built a global footprint that can provide resources from a breadth of locations.

• Continuous Improvement Approach. Clients recognized Accenture had rigorous methodologies (HfS identifies Lean Six Sigma, Operational Excellence, and We@Accenture, an internal employee suggestion program to harvest process improvement ideas to bring new value to clients and operations), whether or not the clients have been willing and able to consume them because of internal operational or resource constraints.

• Delivering Value Beyond Cost. Research for this report uncovered numerous examples where Accenture is driving traditional outsourced services for recruiting and labor contracting forward to reach business outcomes of quality of worker, increased revenues, and business agility.

• Jaded or jealous buyers. A number of clients that have been using Accenture for talent acquisition services for a long period have pulled back some of their more strategic workforce and talent work as they said service delivery became too transaction-oriented and they felt strategic hiring support and services were going to be costly to add or augment the existing agreement. Similarly, some of the additional value added services that Accenture can offer may start to overlap with internal team expected contributions so the company will have to tread carefully to not step on the toes of HR partners or buyer leads.

• No technology appetites amongst buyers. While Accenture certainly brings strong technical resources, tools, and packaged solution implementation capabilities to prospects, many enterprises interviewed for this report, including Accenture customers, noted they are not interested in buying the technology specifically, more the outcomes of those systems in terms of efficiencies and management information. Accenture will have to figure out how it can make its money and margins to keep both customers and shareholders happy.

• On-site support. In its own “industrialized” operational excellence orientation, Accenture has set up on-shore, near-shore, and off-shore capabilities to best serve customers, but some companies are demanding on-site support that may not work well in practice in Accenture’s own staffing models.

Blueprint Leading Highlights

• Quality of Account Management Team

• Incorporates Customer Feedback

• Geographic Footprint and Scale

• Experience Delivering Industry-Specific Solutions

• Flexibility to Deliver End-to-End Solutions and Point Solutions

• Integration of Technology into the Business Process

• Leverage New Technology, Security, Social Media, Mobility, and Cloud Capabilities

• Concrete Plans To Deliver Value Beyond Cost and Investment Into Future Capabilities

Accenture

Strategic Client Advisor with Technology, Global Footprint, and C-level Trust

Strategy Source EngageStaff Contractors


Christa Degnan Manning

Overview• More than twenty years’ experience in business to business services industries.• Leads HfS global workforce and talent strategies practice, documenting how companies are acquiring,

motivating, and managing all types of workplace contributors – from traditional full and part-time staff to contract workers and third-party service team members – through culture matching, optimal collaboration approaches, and shared outcome alignment strategies and execution mechanisms.

• Conducts Blueprint reports on the software and service providers supporting the workforce with a unique focus on workforce enablement and the employee experience.

• Creates case studies on global workforce transformation initiatives, including new global organizational constructs and roles, modern policy, procedure, and process changes, and digital technology implementations.

Previous Experience• Director, Research and Applied Business Intelligence consulting at American Express, Global Business

Travel.• Research Director at AMR Research (acquired by Gartner Group) covering employee self-service,

human capital management, and integrated talent management software and service providers.• Research Director at Aberdeen Group, establishing indirect procurement and category management

practice, including contract worker vendor management and travel and expense management. • Business technology journalist at Advance Publications and Ziff Davis.

Education• Christa holds bachelor and master of arts degrees in English from Barnard College, Columbia

University, and the University of Massachusetts, respectively. She also studied at University College, University of London, and The Wharton School, University of Pennsylvania.

[email protected]

Senior Vice President, Global Workforce and Talent Strategies, HfS Research – Scituate, MA


About HfS Research

HfS Research is the leading analyst authority and global network for IT and business services, with specific focus on global businessservices, digital transformation and outsourcing. HfS serves the research, governance and services strategy needs of business operationsand IT leaders across finance, supply chain, human resources, marketing, and core industry functions. The firm provides insightful andmeaningful analyst coverage of best business practices and innovations that impact successful business outcomes, such as the digitaltransformation of operations, cloud-based business platforms, services talent development strategies, process automation andoutsourcing, mobility, analytics and social collaboration. HfS applies its acclaimed Blueprint Methodology to evaluate the performance ofservice and technology in terms of innovating and executing against those business outcomes.

HfS educates and facilitates discussions among the world's largest knowledge community of enterprise services professionals, currentlycomprising 150,000 subscribers and members. HfS Research facilitates the HfS Sourcing Executive Council, the acclaimed elite group ofsourcing practitioners from leading organizations that meets bi-annually to share the future direction of the global services industry and todiscuss the future enterprise operations framework. HfS provides sourcing executive council members with the HfS Governance Academyand Certification Program to help its clients improve the governance of their global business services and vendor relationships.

In 2010 and 2011, HfS Research's Founder and CEO, Phil Fersht, was named “Analyst of the Year” by the International Institute of AnalystRelations (IIAR), the premier body of analyst-facing professionals and achieved the distinctive award of being voted the research analystindustry's Most Innovative Analyst Firm in 2012.

In 2013, HfS was named first in rising influence among leading analyst firms, according to the 2013 Analyst Value Survey, and second out ofthe 44 leading industry analyst firms in the 2013 Analyst Value Index.

Now in its seventh year of publication, HfS Research’s acclaimed blog “Horses for Sources” is widely recognized as the most widely-readand revered destination for unfettered collective insight, research and open debate about sourcing industry issues and developments.Horses for Sources today receives over a million web visits a year.

To learn more about HfS Research, please email [email protected].

http://www.hfsresearch.com/

http://www.hfsresearch.com/uploads/downloads/HfS_Services_Sourcing-Executive-Council.pdf

http://www.horsesforsources.com/

mailto:[email protected]

HfS Blueprint Report - Accenture · The Talent Acquisition Services HfS Blueprint Report is the...

Documents

Transcript of HfS Blueprint Report - Accenture · The Talent Acquisition Services HfS Blueprint Report is the...