Topic: Managed Service Provider (MSP) Service Provider Profile Compendium 2013

Transcription

1 Topic: Managed Service Provider (MSP) Service Provider Profile Compendium 2013 Recruitment Process Outsourcing (RPO) Market Report: July 2014 Preview Deck

2 Our research offerings for global services Subscription information The full report is included in the following subscription(s) Recruitment Process Outsourcing (RPO) Market Vista TM Global services tracking across functions, sourcing models, locations, and service providers industry tracking reports also available BFSI 1 information technology PricePoint TM In addition to published research, a subscription may include analyst inquiry, data cuts, and other services If you want to learn whether your organization has a subscription agreement or request information on pricing and subscription options, please contact us: BFSI 1 business process Healthcare information technology Information technology Cloud Vista TM Global sourcing Locations Insider TM Finance & accounting Procurement Human resources Recruitment process Contact center Transaction Intelligence Corporate Headquarters Office: info@everestgrp.com European Headquarters Office: unitedkingdom@everestgrp.com Custom research capabilities Benchmarking Pricing, delivery model, skill portfolio Peer analysis Scope, sourcing models, locations Locations Cost, skills, sustainability, portfolio plus a tracking tool Tracking services Service providers, locations, risk Other Market intelligence, service provider capabilities, technologies, contract assessment 1 Banking, financial services, and insurance 2

3 Background and scope of the research Background of the research The MSP Service Provider Profile Compendium is an add-on to Everest Group s latest study in the MSP space Managed Service Provider (MSP) Service Provider Landscape with PEAK Matrix Assessment This report provides comprehensive, fact-based snapshots of 13 major MSP service providers. Each profile highlights a service provider s MSP capability and strategy, delivery capability, technology prowess, and portfolio along various dimensions, such as industry, workforce managed, and deal size. In addition, each profile provides the positioning of the service provider on Everest Group s PEAK Matrix with an insightful analysis of its capabilities. This compendium of profiles tracks 13 MSP service providers including Allegis Global Solutions, AMN Healthcare, Capita Resourcing, Hays, Hudson RPO, KellyOCG, ManpowerGroup Solutions TAPFIN, nextsource, Randstad Sourceright, Superior Group, Xchanging, Yoh, and ZeroChaos. The scope and methodology of this report includes: Proprietary data collected from 13 MSP providers MSP deals that include a minimum of four core processes and a contract term of two years Scope of hires includes temporary/contingent hires, SoW consultants, and independent contractors Everest Group defines MSP as the transfer of ownership of all or part of the management of an organization s contingent/temporary staffing activities on an ongoing basis 3

4 Table of contents Topic Page no. Background and methodology 4 Section I: Snapshot of MSP provider landscape 7 Recap of MSP provider landscape 8 Everest Group PEAK Matrix framework 9 MSP provider PEAK Matrix 11 Section II: Profiles of MSP providers 12 Allegis Global Solutions 13 AMN Healthcare 17 Capita Resourcing 21 Hays 25 HudsonRPO 29 KellyOCG 33 nextsource 34 Randstad Sourceright 38 Superior Group 42 TAPFIN, Manpower Group Solutions 46 Xchanging 50 Yoh 54 ZeroChaos 58 Appendix 62 List of participants in the study 63 Glossary of terms 64 MSP/RPO research calendar 65 References 66 4

5 Overview and abbreviated summary of key messages The objective of this compendium is to provide key stakeholders a snapshot of the offerings and capabilities of the 13 major MSP 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 MSP will be able to assess service providers on their desired set of capabilities In this report we analyze the MSP service providers across the following dimensions: MSP service capability and strategy Includes company overview, MSP experience, technology portfolio, geographic focus, MSP engagement model, and global sourcing MSP portfolio Includes nature of workforce managed by job family and type of worker, buyer industry, deal size, and major clients MSP delivery locations Includes city level detail of key delivery locations across the world Detailed assessment of MSP capabilities Includes the position of the service provider on Everest Group PEAK Matrix, market success and delivery capability assessment, and overall remarks on the capabilities of the service provider 5

6 XYZ (page 1 of 4) MSP service capability and strategy Company profile Geography focus XYZ is a leading MSP provider offering comprehensive workforce management solutions worldwide. Leveraging its parent s global footprint and expertise, XYZ offers a fully integrated approach to workforce management. Headquarters: XXXXXXXXX Leadership: XXXXXXXXX, Chairman, President and CEO Ownership: XXXXXXXXX Parent company: XXXXXXXXX Stock exchange/symbol: XXXXXXXXX Website: XXXXXXXXX As percentage of managed spend North America MSP engagement model 1 Latin America EMEA Asia Pacific As percentage of managed spend MSP experience Total managed spend: US$XX billion Total number of current MSP clients: XX Total number of contingent workers managed: N/A Vendor-neutral Hybrid Mastersupplier Technology strategy Proprietary VMS Name: Econometrix Number of current deployments: XX Technology partnerships XXX Number of technology-related FTEs: XX Global sourcing 2 Total MSP delivery FTEs = XXXX Onsite In-country but offsite 1 MSP engagement model (based on percentage of requisitions filled by MSP (or subsidiary / sister company): Vendor-neutral (0 to 10% requisitions), hybrid (10 to 50% requisitions), and master-supplier (greater than 50% requisitions) 2 FTEs in low-cost offshore (such as India, China, and Southeast Asia) or nearshore locations (such as Eastern Europe and Latin America) and delivering services to high-cost locations such as North America or Western Europe Source: Everest Group (2014) 6

7 XYZ (page 2 of 4) MSP portfolio Major MSP clients Total clients = XX Nature of workforce managed Managed spend split by job family 100% = US$XX billion Accounting, finance, and legal Healthcare Call center Managed spend split by type of worker Independent contractors Sales & marketing 100% = US$XX billion SoW workers Blue collar Engineers / IT professionals / scientists Buyer industry Percentage of current clients 100% = XX clients Healthcare Media Retail Government & public sector Pharmaceuticals & life sciences Energy & utilities Financial services Deal size (based on spend managed) Percentage of current deals Large size (US$ million) 100% = XX deals Others Hi-tech & telecom Manufacturing Mega size (>US$300 million) Temporary Mid-size (US$ million) Small (<US$50 million) Source: Everest Group (2014) 7

8 XYZ (page 3 of 4) Key MSP delivery locations Offices / centralized delivery locations 1 Canada U.S. Mexico Colombia Germany Russia Finland Norway Netherlands Latvia Belgium UK Lithuania Ireland Czech Republic Slovakia Luxembourg France Hungary Romania Portugal Greece Turkey Japan Morocco Israel Kuwait Croatia United Arab Emirates Austria Taiwan Puerto Rico Slovenia Italy Vietnam Philippines Malaysia Australia 1: Includes on-site / client-site locations Source: Everest Group (2014) 8

9 XYZ (page 4 of 4) Detailed assessment of MSP capabilities XYZ is a Leader on Everest Group PEAK Matrix for MSP 75 th percentile High Leaders Market success 25 th percentile Low Low Major Contenders XYZ Emerging Players 25 th percentile High Delivery capability 75 th percentile Delivery capability assessment High Low Dimension Rating Remarks Scale Scope Technology capability Delivery footprint XXXXXXX XXXXXXX XXXXXXX XXXXXXX Overall remarks XYZ is one of the largest MSP firms. Built on the backbone of its staffing prowess, XYZ is a formidable presence in the MSP space, both in terms of scale as well as the breadth of scope across geographies, industries, and contract sizes Note: Based on contractual and operational information as of September 2013 Source: Everest Group (2014) 9

10 RPO research calendar Topic Global Location Insights: Sun Is Rising in the Middle East Enabling Business Agility How HR Organizations can Lead the Way and the Role of HR Outsourcing Managed Service Provider (MSP) Service Provider Landscape with PEAK Matrix Assessment 2013 Rise of RPO in Emerging Markets APAC Global RPO: Addressing Globalization Imperatives How Global RPO Helps Multi-National Corporations Slay the Global Talent Dragon Capturing Strategic Value in RPO Recruitment Process Outsourcing (RPO) Annual Report 2014 Published Current Release date October-2013 November-2013 December-2013 December-2013 January-2014 April-2014 June-2014 Managed Service Provider (MSP) Service Provider Profile Compendium 2014 RPO Service Provider Landscape with PEAK Matrix Assessment 2014 RPO Service Provider Profile Compendium 2014 MSP Annual Report 2014 MSP Service Provider Landscape with PEAK Matrix Assessment 2014 MSP Service Provider Profile Compendium 2014 RPO Service Provider Landscape for LATAM region with PEAK Matrix Assessment July 2014 Q Q Q Q Q Q

11 Additional research recommendations The following documents are recommended for additional insight into the topic covered in this research. These documents either provide additional details on the topic or complementary content that may be of interest 1. Managed Service Provider (MSP) Mastering the Winds of Change (EGR R-0958); Over the last few years, the Managed Service Provider (MSP) market has experienced steady growth as well as concurrent elementary changes that are altering the dynamics of the market. Not only are buyers expectations and drivers changing, but also are the buyers profiles. The service provider landscape is also morphing, as is the operating model of the providers. This flux in MSP space makes it imperative for buyers to understand what they can derive from the offerings there in the market. It is also relevant for service providers review the trends and update/upgrade their service portfolio 2. Managed Service Provider (MSP) Service Provider Landscape with PEAK Matrix Assessment 2013 (EGR R-1034); The global MSP market is estimated to be US$60 to 65 billion, based on managed spend and ~US$1.05 in terms of Net Fee Income (NFI). Its landscape is characterized by the juxtaposition of traditional and emerging drivers, which are shaping the MSP market in multiple ways. To maintain a competitive edge in this evolving space, service providers differentiate their offerings by specializing across various dimensions. However, only some players have the capability to execute deals with both depth and breadth of scope 3. Business Case for Procurement and HR Collaboration (EGR R-1098); In the current, challenging economic environment, taking an integrated Human Resource Outsourcing (HRO) and Procurement Outsourcing (PO) approach can reap significant benefits. An integrated approach to HRO and PO can ensure that the operational expertise on the HR side is effectively combined with the sourcing and vendor management expertise on the procurement side to unlock the full value of outsourcing. However, there are organizational, operational, and technological challenges that the companies need to manage while pursuing an integrated approach For more information on this and other researches published by Everest Group, please contact us: Rajesh Ranjan, Vice President: rajesh.ranjan@everestgrp.com Abhishek Menon, Practice Director: abhishek.menon@everestgrp.com Arkadev Basak, Senior Analyst: arkadev.basak@everestgrp.com Dhananjai Gaur, Analyst: dhananjai.gaur@everestgrp.com Everest Group Two Galleria Tower Noel Road, Suite 2100 Dallas, TX Phone: info@everestgrp.com 11

12 At a glance With a fact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use and delivery of the next generation of global services Through its practical consulting, original research, and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and sourcing models, technologies, and management approaches Established in 1991, Everest Group serves users of global services, providers of services, country organizations, and private equity firms in six continents across all industry categories Dallas (Headquarters) info@everestgrp.com New York info@everestgrp.com Toronto canada@everestgrp.com London unitedkingdom@everestgrp.com Delhi india@everestgrp.com Stay connected Websites Blogs