Boost the utilization of your HCL environment by reevaluating use cases and f...
Perfect Storm: HR in the Cloud
1. Perfect Storm: HR in the Cloud
Market Trends and Key Considerations
October 30, 2012
Sponsored by: Wall Street Tech Conference & Expo
Produced and Presented by: The Outsourcing Institute
2. Today’s Speakers
Moderator
Dan Goodstein
Vice President
The Outsourcing Institute
Maribeth Sivak Stanton Jones
Principal Consultant Analyst, Emerging Technology
Business Advisory Services ISG
ISG
3. • Located at outsourcing.com – Largest Professional Association of
Outsourcers with 70,000 Members Globally
• Gateway to Resources, Trends, Best Practices, Case Studies
• Recently launched OTV, including new RPO Video Channel
• Outsourcing Jobs Opportunities and Recruiting Services Through CMS Inc.
• For Buyers:
– Training Through OI University
– Outsourcing RFP Builder Software and Related Tools
– Vendor Matchmaker Service
• For Providers:
– Sponsorship and promotions
– Marketing Campaigns for brand acceleration and exposure
– Performance-based Integrated Sales and Marketing Programs for lead
generation & business development
For more information contact us at:
info@outsourcing.com or 516-279-6850 ext. 712
3
4. Outsourcing Institute Fall Road Show: Outsourcing Governance and
Relationship Management
December 5, 2012 in NYC
Join over 80 senior outsourcing executives within both the ITO and BPO space to generate leads, relationships and
exposure for your brand and message.
Our Fall show will include panels and discussion on the following topics:
ITO Trends & Best Practices;
Onshoring and Rural Sourcing;
The True Power of BPO and How it Can Work for You;
Alternatives to India - All Key Alternative Destinations;
T5 Panel (Tech Related Trends All Executives Must be on Top of);
Opportunities in Latin America;
Innovation-Cost Save is Table Stakes -Why Settle- Innovation can be Game Changer you are Seeking
The Keys to Winning Relationships Cross Fire panel.
Wall Street Tech Conference & Exhibition
March 13, 1013 in NYC
CIOs, CTOs and Tech Sourcing Execs in Banking, Financial Services & Insurance to Explore "T-5": Sourcing, Cloud Computing, Big
Data, Mobility, Security & Compliance - also known as "T-5", or the five critical technology-related trends creating both
opportunities and risk for banking, financial services and insurance organizations - will be explored at the
Wall Street Tech Conference & Exhibition.
To learn more and register for events visit outsourcing.com.
5. Agenda
1. Cloud Level Set
2. HR SaaS: Market Trends
3. HR SaaS vs. HR BPO
4. Considerations for Prospective Buyers
5
6. Cloud Level Set: NIST
The National Institute of Standards and Technology (NIST) defines Cloud Computing as follows:
• A model for enabling convenient, on-demand network access to a shared
pool of configurable computing resources that can be rapidly provisioned
and released with minimal management effort or service provider
interaction.
• While this definition is hotly debated within the Cloud community, ISG
views it as a broadly accepted industry standard.
Characteristics Service Delivery Models Deployment Models
• On-demand self-service • Business Process as a • Public Cloud
• Broad network access Service • Private Cloud
• Resource pooling • Software as a Service • Hybrid Cloud
• Rapid elasticity • Platform as a Service • Community Cloud
• Measured service • Infrastructure as a Service
6
7. Cloud Level Set: Service Delivery Models
A useful way to evaluate Service Models is to define management responsibility.
Infrastructure Platform Software
as a Service (IaaS) as a Service (PaaS) as a Service (SaaS)
Customer
Managed
Customer
Managed
Configuration Configuration Configuration
Customer
Managed
Application Application Application
Middleware Middleware Middleware
Database Database Database
Managed
Provider
Operating System Operating System Operating System
Managed
Provider
Virtualization Virtualization Virtualization
Managed
Provider
Servers Servers Servers
Storage Storage Storage
Network Network Network
7
8. Cloud Level Set: Deployment Models
The deployment model, either shared or dedicated, has a significant impact on the maturity of
features, standardization of commercial terms and pricing, and data privacy/security.
Shared Dedicated
“Public Cloud” “Private Cloud”
• Nearly always shared (multi-tenant), with • Typically dedicated to smaller number of
frequent feature updates. customers, or single customer.
• Highly standardized in features, pricing • More easily customized for specific
and commercial terms. customers or requirements.
• Oftentimes fail to meet enterprise IT • Typically more robust, negotiable SLAs
security & service level expectations. that meet enterprise IT expectations.
• Most closely meets NIST definition. • Portions of NIST definitions likely do
not apply.
Provider logos a small sample of available market options; many suppliers have both shared and dedicated offerings.
8
9. Market Trends: HR ERP
Given the emergence of ERP offerings in the cloud, clients’ buying decisions over the next few years
will become more complex.
• ERP software vendors are leveraging cloud offerings for both survival and
predatory purposes. Oracle and SAP are expanding cloud offerings via both
organic and acquisition-related growth.
• Offshore service delivery and the tools/methods used by Systems
Integrators (SI) have become commoditized as a cost of entry.
• SIs are competing on their experience with new ERP SaaS offerings and
their library of proprietary best practices/accelerators to add-onto the core
ERP products.
• SI players and ERP vendors are pitching SaaS offerings with promises of
speed and increased time to value.
• SI partner selection criteria increasingly focused on program leadership
teams, vertical knowledge and business processes savvy.
9
10. Market Trends: HR SaaS
We expect HR’s movement to Software-as-a-Service to continue.
• SaaS solutions continue to gain traction:
– Workday’s native SaaS platform is rapidly evolving from a US-centric
mid-market core HR technology player into a strong competitor to Oracle and
SAP for large, complex global companies
– SaaS solutions delivered by Ultimate Ultipro, ADP Vantage , Ceridian Latitude
and Sapien address the needs of mid-market U.S. firms
• Acquisition activity:
– December 2011, SAP announces their intent to acquire SuccessFactors [March
2012 close]. Speculation is that SAP went down this path because of a serious
lag in their internal product development of Cloud and SaaS products
– February 2012, Oracle announces their intent to acquire Taleo [mid 2012 close].
Speculation is that this acquisition was driven by the goal to provide a complete
cloud offering via the integration of Oracle Fusion and Taleo
– August 2012, IBM announces their intent to acquire Kenexa
10
11. Market Trends: Workday
• Workday is providing a formidable challenge with a number of significant,
recent wins with large multi-national companies:
– Client base has grown from 105 clients at the end of 2010 to 300 clients now;
projecting 600 by the end of 2012
– US and Canadian payroll platforms are “live”; no further geographic expansion
planned
– Modules for Organization Management, Compensation, Absence, and Talent
each with robust business analytics
• HR SaaS technology does not address buyer’s desire to outsource routine
HR, Payroll, and Benefits administration
– Building “services” relationships with Aon Hewitt, Accenture and IBM. These
HRO Providers are furthest along in wrapping their portal, CRM, and services
solutions around Workday to deliver a fully outsourced solution
– Accenture, IBM and the Big 4 firms all have growing implementation groups
focused on Workday
11
12. HR SaaS vs HR BPO: What is the Difference?
The HR SaaS delivery model does not address buyer’s desire to outsource routine transaction
processing and call center support.
Software as a Service (SaaS) Business Process Outsourcing (BPO)
Employee Portal Employee Portal
Customer
Managed
Employee Contact Employee Contact
Transactions Transactions
Configuration Configuration
Application Application
Managed
Provider
Middleware Middleware
Managed
Provider
Database Database
Operating System Operating System
Infrastructure Infrastructure
12
13. HR SaaS vs. HR BPO: Qualitative Analysis of Alternative Models
If a client has no existing call center technology and portal, an HR BPO SaaS delivery model can get the
client to their desired future state faster, at a lower cost and lower risk than the SaaS only alternative.
Attributes of
HR SaaS HR BPO Comments
Alternative
• HR BPO is designed to scale to business needs by leveraging
Scalability
infrastructure and resources across the provider’s client base
• Both delivery models offer flexibility with HR BPO providing more
Flexibility
rigor in balancing process variations with quality
• HR BPO brings commercial grade call center technology, best practice
Customer Focus
employee portal, knowledgebase and workflow
Complexity to • HR BPO provides time tested implementation methodology, and
Implement established service center delivery environment
Speed to Future • HR BPO implementation experience and contractually committed
State implementation fixed fees drive meeting timelines
Demand on • HR BPO provides PMO and systems integrator resources as well as on
Resources going service center and technology FTEs
Cultural • Both models have risk associated with cultural acceptance. For some,
Acceptance outsourcing may be more controversial
• HR BPO provides HR process expertise and talent. Company may need
Skills & Talent
to build internal talent to support SaaS model
Legend =High Risk =Medium Risk = Low Risk
14. Sample Considerations for Prospective Buyers
Majority of time spent on SaaS evaluations: feature comparisons, evaluating standard
commercial & security terms, creating business case.
HR SaaS Vision Customers Should Verify
Global payroll capability How many clients are live; is there a global roadmap?
Point solution integration Any pre-built integrations with existing point solutions?
Rapid access to new features Do capabilities exist internally to configure and test?
Mobile support Includes iOS, Android, Blackberry & Windows apps?
Eliminate customizations Can internal organization configure?
Eliminate upgrades Are quarterly/seasonal released turned “off”?
Decrease reliance on internal IT Who will design, build and support interfaces?
Faster to implement Can legacy ERP be decommissioned?
Reduce TCO Is the business case long enough to avoid upgrade?
Pay per user How much of the TCV is required up front?
More secure than current Will IT accept reports over 1st person audits?
Employee data is safe Has Article 29 Working Party been considered?
14
15. Questions
Stanton Jones Maribeth Sivak
Analyst, Emerging Technology Principal Consultant, Business Advisory Services
ISG ISG
Tel: 281-795-2636 Tel: 630-659-5017
E-mail: stanton.jones@isg-one.com E-mail: maribeth.sivak@isg-one.com
Url: www.isg-one.com Url: www.isg-one.com
LinkedIn: http://www.linkedin.com/in/stantonjones LinkedIn:
Twitter: https://twitter.com/stantonmjones http://www.linkedin.com/pub/maribeth-
sivak/14/368/418
Dan Goodstein
Vice President
The Outsourcing Institute
Tel: 516-279-6850 x717
E-mail: dgoodstein@outsourcing.com
Url: www.outsourcing.com
LinkedIn:
http://www.linkedin.com/in/danielgoodstein
15
16. ISG Services Tools
The Power of One: ISG-One
ISG is a leading technology insights, market intelligence and advisory services company, offering
clients one source for support in driving operational effectiveness.
The world’s leading
sourcing data and
advisory firm.
the power
A premier independent
technology advisory
of One
serving the The premier independent
U.S. public sector provider of business and IT
benchmarking, performance
improvement, data and
analytics services.
16
17. ISG Services Tools
ISG Solutions Provided World-wide
With consultants across the globe we are in the locations that matter to you. Local market
knowledge and language support can be critical to success in major change programs.
Operating from 700 Professionals 1,000+ Clients
21 Countries Worldwide 10,000+ Engagements
17
18. ISG Services Tools
Unrivaled Depth of Experience
ISG focuses exclusively on helping clients achieve operational excellence. Our depth of experience
is unrivalled.
scale
We advise on over 25% of the Sourcing Markets Annual TCV Awarded.
Having advised on over $330 billion in contract value, no other advisory
firm comes close to our level of market engagement and experience.
value
75% of our clients are either repeat or direct referrals. Our clients come back
to us time and time again for critical market insight and advice around their
strategic operational imperatives.
clients
75% of the Forbes Global 100 are ISG clients. We advise the world’s largest
blue chip firms through some of their most critical business operations
transformation projects.
market voice
The TPI Index® is the premier source of quarterly insight and is considered
the authority on trends and developments in the global sourcing industry.
18
19. Thank you for joining
Perfect Storm: HR in the Cloud
Market Trends and Clarifying SaaS Myths
Dan Goodstein Maribeth Sivak Stanton Jones
Vice President Principal Consultant Analyst, Emerging Technology
The Outsourcing Institute Business Advisory Services ISG
ISG
This webinar was sponsored by the Wall Street Tech Conference & Exhibition
in conjunction with The Outsourcing Institute.
Notas do Editor
Client base has grown from 105 clients at the end of 2010 to 300 clients now; projecting 600 by the end of 201260 clients with 7,500+ employees; 22 clients with 25,000+Recent wins include Motorola (both Solutions and Mobility), AIG, Tyco, Thomson Reuters US payroll platform is “live”; Canada payroll platform being rolled out in 2012; no further geographic expansion plannedBuilding relationships with NgA, Safeguard World and Patersons for global payrollGlobal time management module available later this yearAccenture, IBM and the Big 4 firms all have growing implementation groups focused on WorkdayDeloitte just announced acquisition of Aggressor, a 100-employee firm focused exclusively on Workday consulting and implementation servicesWorkday only does about 30% of their implementations, relying on various partners to handle most of this workMost buyers interested in a fully outsourced solution based on Workday platform have contracted directly with Workday and then separately contracted with a services providerContrary to popular belief, Workday is not the only SaaS HRIS provider, but they have developed a commanding lead in this emerging market. Other alternatives include:NgA is the only provider capable of delivering a self-contained fully outsourced delivery model around their SaaS platform supported with their own contact center and back office processing capabilities NgA has the most mature model (euHReka) which has been used for yearsUltimate Software – North America focused SaaS competitor to Workday
Internal 9/7 = 1.25 = round down to 1 = Inadequate Outsourced 18/7 = 2.57 = round up to 3 = Good