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1 People Making Technology Work The HRO impact on Corporate Relationships RDC September 2005

The HRO impact on Corporate Relationships RDC September 2005

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The HRO impact on Corporate Relationships RDC September 2005. Speakers: Paul DeBeor,CRPACS Mike Brannan,CRP CENDANT Mobility Moderator : Tracy Hutton, CRP CENTURY 21 Scheetz. Topics for Discussion. What are your concerns ? Who is ACS and other HRO players? What is BPO vs. HRO? - PowerPoint PPT Presentation

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Page 1: The HRO impact on Corporate Relationships RDC September 2005

1

People Making Technology Work™

The HRO impact on Corporate Relationships

RDC September 2005

Page 2: The HRO impact on Corporate Relationships RDC September 2005

2

People Making Technology Work™

Speakers:

Paul DeBeor,CRP ACS

Mike Brannan,CRP CENDANT Mobility

Moderator :

Tracy Hutton, CRP CENTURY 21 Scheetz

Page 3: The HRO impact on Corporate Relationships RDC September 2005

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People Making Technology Work™

Topics for Discussion

What are your concerns ?

Who is ACS and other HRO players?

What is BPO vs. HRO?

Scope of Services

Benefits of an HRO

Why an HRO?

Page 4: The HRO impact on Corporate Relationships RDC September 2005

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People Making Technology Work™

Founded in 1988

More than $4 billion in annual revenues

Fortune 500 Company

Diverse clients and industries

More than 50,000 employees

NYSE symbol: ACS

www.acs-inc.com

ACS & Business Process Outsourcing

Revenue Mix3/4 of revenue from BPO services Good mix of public and private sector business Revenues balanced across segments

Revenue Mix3/4 of revenue from BPO services Good mix of public and private sector business Revenues balanced across segments

Business Process Outsourcing

76%IT Outsourcing

24%

State and Local 51%

Federal6%

Commercial43 %

Page 5: The HRO impact on Corporate Relationships RDC September 2005

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People Making Technology Work™

Other HRO Players

Accenture HR Service

Aon Consulting

Ceridian

Convergys

Fidelity

Hewitt Associates (Exult)

IBM

Many Others (Industry in its Infancy)

Page 6: The HRO impact on Corporate Relationships RDC September 2005

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People Making Technology Work™

BPO vs. HRO

BPO = Business Process Outsourcing. This is a very broad term that refers to the outsourcing of any business function, not just HR related activities.

HRO or HRO-BPO = Human Resource Outsourcing. This can be broken down into 2 areas:

HR processing services which would include payroll processing, benefits admin, etc, but not with the transfer of management responsibility to the external vendor

HR BPO involves the comprehensive outsourcing of most, if not all, of the mgt and administration of all HR functions to a 3rd party.

There can be a 3rd step whereby an HRO becomes a true business partner by assisting in a client’s strategic HR focus and not just on transactional processing

Page 7: The HRO impact on Corporate Relationships RDC September 2005

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People Making Technology Work™

HRO Scope of ServicesVa

lue

Add

ed

HighLowComplexity of Interaction

High

Low

EmploymentServices

CorporateGovernance

Services

Recruitment, Assessment & Selection

Policy Inquiries & Resolution

International Service Personnel Admin.

Training Administration

Integrated Disability Case Management

Professional& Advisory

Services

Vendor Management

Labor Relations

Performance Management

Learning Management

Labor Relations Strategy

Overall HR Strategy

Relocation ServicesBenefits Administration

Job PostingEmployment Changes

PayrollBenefits Sign-up

Form Submission

Change Management Consulting

Transaction Services

HR Policy

Employee RecordkeepingHRIS

Employee Assistance Programs

Strategic Workforce Planning & AnalysisCompensation & Benefit Policy/Design

Employee Relations

Drug Testing

Compensation Administration

Page 8: The HRO impact on Corporate Relationships RDC September 2005

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People Making Technology Work™

HRO Benefits/Value

Financial/Cost Savings

Standardized processes

Measured and reported SLAs

Economies of scale

Avoidance of capital investments

Reduced headcount needs

Self service capabilities

Single point of contact

Off-Shoring Improved/consistent

employee satisfactionBetter able to effect

changes in policiesAccess to expertiseShift in HR focus

allowing retained employees to focus on strategic issues

Improved competitiveness

Risk mitigation

Page 9: The HRO impact on Corporate Relationships RDC September 2005

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People Making Technology Work™

Why an HRO ?

CLIENTS – Integration

Growth

Margin

Profitability

Increasing market share

Page 10: The HRO impact on Corporate Relationships RDC September 2005

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People Making Technology Work™

Why an HRO?

Of 122 surveyed companies with over $1Billion in Sales:

76% have already outsourced one or more major HR function (an increase form 62% in the prior year)

Another 15% have outsourcing in progress or plannedOnly 9% won’t outsource some HR function compared to 23%

the prior year (In the US it’s only 4%)More companies are looking at a single source HRO Two thirds of them are already in a shared services mode, with

more on the way – not a barrier to outsourcing44% of those that have outsourced have achieved their

objectives and 47% have partially met their objectives. Only 9% have not met their targets

Of those that have already outsourced, 45% will renegotiate, 26% will re-bid, and 29% will extend on the same terms and conditions…………0% will bring back in house.

Source: Accenture HR Services-The Conference Board, April 2004

Page 11: The HRO impact on Corporate Relationships RDC September 2005

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T H E A D V A N T A G E I S R E A L

September 28, 2005

Mike Brannan, CRP

Senior Vice President, Outsourcing Solutions

Page 12: The HRO impact on Corporate Relationships RDC September 2005

Topics for Discussion:Topics for Discussion:

Who is Cendant MobilityWho is Cendant Mobility Cendant Corporation overviewCendant Corporation overview Relocation is “in-scope” on most enterprise-wide Relocation is “in-scope” on most enterprise-wide

HRO engagementsHRO engagements HRO TrendsHRO Trends HRO Buyer CTQs (critical to quality HRO Buyer CTQs (critical to quality

measurements)measurements) Relationships with clients – past, present, futureRelationships with clients – past, present, future Open discussionOpen discussion

Cendant Mobility

5

Page 13: The HRO impact on Corporate Relationships RDC September 2005

Asia PacificThe Americas Europe, Middle East and Africa

Over 2,300 employeesOver 2,300 employees 13 office locations on 4 13 office locations on 4

continentscontinents 49 languages49 languages Globally linked on one Globally linked on one

platformplatform

Cendant Mobility Legend

Offices

Service Centers

Doing business in

Cendant Mobility | Reach & Expertise

Page 14: The HRO impact on Corporate Relationships RDC September 2005

Our Parent – Cendant CorporationOur Parent – Cendant Corporation

Vehicle Services• Avis• Budget

Travel Distribution Services• Galileo International• Highwire• Cheaptickets.com• Travelport• Orbitz

Real EstateServices

Financial Services• Trilegiant• Progeny• Cims

Hospitality Services• Days Inn• Howard Johnson• RCI• Cuendet• Wingate

• Ramada• Fairfield Resorts• Knights Inn• Holiday Cottages

Page 15: The HRO impact on Corporate Relationships RDC September 2005

Total HRO SolutionTotal HRO SolutionRelocation is “in-scope”Relocation is “in-scope”

Benefits Admin

Data Mgmt

Training

Employee Contact Centers

Mobility

Recruiting

Compensation

Payroll

HROSolution

Page 16: The HRO impact on Corporate Relationships RDC September 2005

Growth: Growth: HRO industry is expected to continue to grow. HRO industry is expected to continue to grow. Global HRO Market Global HRO Market growing and expected to reach over $80 billion by 2008growing and expected to reach over $80 billion by 2008

Mid Markets: Mid Markets: HROs will continue to focus on mid market (companies with HROs will continue to focus on mid market (companies with 20k employees and less). 20k employees and less).

Year of the Skeptic: Year of the Skeptic: Due to market maturation, former buyers who Due to market maturation, former buyers who were skeptics are entering the market were skeptics are entering the market

Globalization:Globalization: Through consolidationThrough consolidation and partneringand partnering HROs will continue HROs will continue

to expand their global footprint to assist their clients in globalizing HRto expand their global footprint to assist their clients in globalizing HR

Standardization:Standardization: No more “mess for less”; now vision with standards. No more “mess for less”; now vision with standards. HROs are cross pollinating best practices amongst their clients and actually HROs are cross pollinating best practices amongst their clients and actually transforming HR servicestransforming HR services

Sources: HRO Today and The Yankee GroupSources: HRO Today and The Yankee Group

Projected 2005 HRO Trends

5

Page 17: The HRO impact on Corporate Relationships RDC September 2005

1. Execute on Buyer’s Vision of the Future State1. Execute on Buyer’s Vision of the Future State

• Capabilities – self service applications, automation & productivity Capabilities – self service applications, automation & productivity

• Flexibility – global reach and IT infrastructure Flexibility – global reach and IT infrastructure

• Capacity - ability to handle growth (geographic, M&A, JV etc..)Capacity - ability to handle growth (geographic, M&A, JV etc..)

2. Cultural Fit and Chemistry of HRO’s Delivery Team2. Cultural Fit and Chemistry of HRO’s Delivery Team

• Six Sigma/Process Improvement TechniquesSix Sigma/Process Improvement Techniques

• Service CentersService Centers

3. Cost Savings3. Cost Savings

• Now an expectation Now an expectation

Sources: Equaterra ConsultingSources: Equaterra Consulting

2005 HRO Buyer’s Top 3 CTQs

6

Page 18: The HRO impact on Corporate Relationships RDC September 2005

Relocation Supplier Support Relocation Supplier Support Structure (early 1990’s)Structure (early 1990’s)

Client Contact

3rd Party Relocation Company

Household Good Providers

MortgageProviders

Real Estate Community

Page 19: The HRO impact on Corporate Relationships RDC September 2005

Impact of Relocation Outsourcing Impact of Relocation Outsourcing (late 1990’s to present)(late 1990’s to present)

Client Contact

3rd Party Relocation Company

MortgageProvider

Household GoodsProvider

Real EstateCommunity

Select Preferred Suppliers

Page 20: The HRO impact on Corporate Relationships RDC September 2005

Impact of HR BPO Impact of HR BPO (immediate future state)(immediate future state)

Client Corporationclient contact

changes

HR BPO Provider

3rd Party Relocation Provider

Real Estate Community Other Service Providers

HRO Provider might work directly with Real Estate Community and Other Service Providers

Page 21: The HRO impact on Corporate Relationships RDC September 2005

How can Relocation Director’sHow can Relocation Director’sstrategically position their strategically position their

departments for the future ?departments for the future ?