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Copyright © 2016 Everest Global, Inc. This document has been licensed for exclusive use and distribution by Accenture EGR-2016-3-E-1875 Focus on Accenture August 2016 Everest Group PEAK Matrix™ for MPHRO

Everest Group PEAK Matrix™ for MPHRO - Accenture · Everest Group PEAK Matrix 1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page

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Page 1: Everest Group PEAK Matrix™ for MPHRO - Accenture · Everest Group PEAK Matrix 1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page

Copyright © 2016 Everest Global, Inc.

This document has been licensed for exclusive use and distribution by Accenture

EGR-2016-3-E-1875

Focus on Accenture

August 2016

Everest Group PEAK Matrix™ for MPHRO

Page 2: Everest Group PEAK Matrix™ for MPHRO - Accenture · Everest Group PEAK Matrix 1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page

Copyright © 2016, Everest Global, Inc.

EGR-2016-3-E-18752

Introduction and scope

Everest Group recently released its Multi-Process Human Resources Outsourcing (MPHRO) – Service

Provider Landscape with PEAK Matrix™ Assessment 2016 report. This report analyzes the changing dynamics

of the MPHRO landscape and assesses service providers across several key dimensions.

As part of this report, Everest Group classified 20 service providers on the Everest Group Performance |

Experience | Ability | Knowledge (PEAK) Matrix for MPHRO into Leaders, Major Contenders, and Aspirants.

The PEAK Matrix is a framework that provides an objective, data-driven, and comparative assessment of

MPHRO service providers based on their absolute market success and delivery capability.

Buyers can use the PEAK Matrix to identify and evaluate different service providers. It helps them understand

the service providers’ relative strengths and gaps. However, it is also important to note that while the PEAK

Matrix is a useful starting point, the results from the assessment may not be directly prescriptive for each

buyer. Individual buyers will have to consider their unique situation and requirements, and match them against

service provider capability for an ideal fit.

This document focuses on Accenture’s market success and delivery capabilities. It includes:

Accenture’s positioning on the MPHRO PEAK Matrix

Detailed MPHRO profile of Accenture

Page 3: Everest Group PEAK Matrix™ for MPHRO - Accenture · Everest Group PEAK Matrix 1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page

Copyright © 2016, Everest Global, Inc.

EGR-2016-3-E-18753

Everest Group PEAK Matrix 2016 for MPHRO market

Performance | Experience | Ability | Knowledge (PEAK)

Leaders

Major Contenders

Aspirants

Star Performers

Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for MPHRO

Delivery capability

(Scale, scope, technology solutions and innovation, delivery footprint, and buyer satisfaction)

Mark

et

su

ccess

(Re

ve

nu

e, g

row

th, and n

um

ber

of a

ctive

clie

nts

and

new

dea

ls)

High

Low

75th percentile

Low High

25

thp

erc

en

tile

25th percentile

75

thp

erc

en

tile

Leaders

Major Contenders

Aspirants

Capgemini

Aon

Hewitt

ADP

NGA

Human Resources

IBM

Xerox

HPE

WiproTCSNeeyamo

Infosys

WNSMHR

OneSource Virtual

Capita

Ascender

CGIZalaris

Hexaware

Accenture

Source: Everest Group (2016)

Page 4: Everest Group PEAK Matrix™ for MPHRO - Accenture · Everest Group PEAK Matrix 1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page

Copyright © 2016, Everest Global, Inc.

EGR-2016-3-E-18754

Accenture

Everest Group assessment

Delivery capability

Market successScale Scope

Technology and

innovation

Delivery

footprint

Buyer

satisfaction Overall

Leaders Major Contenders AspirantsMeasure of capability: Best-in-class Not matured

Accenture is a Leader and a Star Performer in the MPHRO PEAK

Matrix, with one of the highest revenues in the industry. It is very

successful in the large market segment in North America and Europe

It has the ability to combine HRO with other services, such as FAO

and PO, to offer a single back-office partnership to its clients

It has good synergies among its consulting, technology, and services

organizations, with a considerable share of new services deals

getting sourced through consulting and technology

It has strong partnerships with, and multiple clients on Workday and

SuccessFactors. It has also strengthened its cloud and mobility

credentials by acquiring Cloud Sherpas and Solium

It is investing on the ServiceNow platform to enhance employee

experience. It is also improving the coverage of contingent workers

It improved its analytics capabilities through organic investments as

well as acquisitions such as that of i4C analytics. It also offers

analytics-as-a-service through its Insights Platform

Reference clients cite deep HR domain knowledge, relationship

management, and project management as its major strengths

Accenture’s favorite turf – the large markets in

developed economies – is mature and slow-growing.

Its recent strategy to target the faster growing

mid-market buyers whose needs fit its value

proposition – consultative and wide scope HR

outsourcing, is a step in the right direction

While it has invested heavily in analytics, on-the-

ground implementation has scope for improvement

Buyers feel that its responsiveness to clients is

sometimes impeded by the lack of flexibility of its

internal processes. They also opine that it should be

more proactive in looking for efficiencies and savings

Strengths Areas of improvement

Source: Everest Group (2016)

Page 5: Everest Group PEAK Matrix™ for MPHRO - Accenture · Everest Group PEAK Matrix 1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page

Copyright © 2016, Everest Global, Inc.

EGR-2016-3-E-18755

Accenture

MPHRO service capability and strategy

1 FTEs located in offshore (India, China, and Southeast Asia) or nearshore locations (Eastern Europe and Latin America) and delivering services for North America

or Western Europe

Source: Everest Group (2016)

Current MPHRO market segment focus

Buyer segment: Targets buyers interested in a broader value proposition in terms

of return on investment in workforce performance and productivity

Geography: North America, EMEA, Latin America, and Asia Pacific

Company profile: Accenture is a leading global professional services company,

providing a broad range of services and solutions in strategy, consulting, digital,

technology, and operations. With approximately 373,000 people serving clients in

more than 120 countries, Accenture drives innovation to improve the way the world

works and lives.

Headquarters: Dublin, Republic of Ireland

Key leaders (BPO/HRO business): Michael J. Salvino, Group Chief Executive –

Accenture Operations; Jill Goldstein, Global Practice Lead, Talent and HR

Operations

Website: www.accenture.com

Offered as MPHRO solution Offered on a stand-alone basis Not offered

Recent HRO-related developments/investments

Current MPHRO technology strategy

Overview: Accenture is a technology-agnostic service provider. It supports

traditional on-premise systems, such as SAP and PeopleSoft, as well as SaaS

technology providers such as Workday and SuccessFactors. Solutions are

supplemented with proprietary technologies such as HR portal and BPO

navigator

Technology models supported:

Tie-and-run

Support/

augmentation

Customized

replacement/

implementation

Platform-based

solution

Areas Developments/investments

M&A /

partnership

Accenture acquired FusionX to strengthen cybersecurity services,

which are critical for smart grids and protecting infrastructure

Accenture has acquired Cloud Sherpas to strengthen its as-a-

Service capabilities

Accenture’s employee experience platform, ServiceNow, provides

a portal with advanced digital & social capabilities, HR case

management, and content management. It integrates with other

platforms via web services, Workday Foundation Data, and HRSS

agents’ phone system

HR

technology-

related

Refined the cornerstone Accenture Operations Navigator

Has made significant investments in automation, robotic process

automation, virtual assistants, and artificial intelligence. In the

past 15 months, 4,900+ automation solutions have been deployed

across the delivery network, driving time-saving benefits equal to

12 million annualized work hours

Analytics

and mobile

Developed Accenture Online Referral Tool, which is a recruiter

dashboard

Developed digital tools such as interview app for improved

interview experience and miniBots for automation

Recruitment

and selectionBenefits Payroll HRIS

Contact

center

Global

mobilityLearning

Compen-

sation

Regulatory

and

compliance

Performance

management

Employee

relations

Total HRO delivery FTEs = ~5,050

Offshore1 Nearshore1 Onshore

~2,800 ~750 ~1,500

SERVICE SUITE

Page 6: Everest Group PEAK Matrix™ for MPHRO - Accenture · Everest Group PEAK Matrix 1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page

Copyright © 2016, Everest Global, Inc.

EGR-2016-3-E-18756

Accenture

MPHRO client portfolio

1 Based on Everest Group’s definition of MPHRO and analyst estimates

Source: Everest Group (2016)

Major MPHRO clients

Large U.S. consumer products retailer

Leading health and hygiene company

Leading UK - based construction and services company

Large global consumer products company

MPHRO revenue (ACV) geography mix MPHRO revenue (ACV) industry mix MPHRO buyer size mix

51%

23%

18%

7%

100% = US$443 million1

EMEA

North America

Latin America

31%

17%13%

10%

8%

7%6%

4%4%

100% = US$443 million1

67%

33%

100% = 48 deals

Manufacturing

Financial servicesHealthcare

Mid-market

Large

market

Asia Pacific

Services

TelecomEnergy

MPHRO experience

Total number of current MPHRO clients – 48

Recent MPHRO wins

Signed large new deals with a Japanese electric utility company, an aerospace and defence service provider, and a multinational

beverage and brewing company

Others

Retail

Hi-tech

Government (1%)

Page 7: Everest Group PEAK Matrix™ for MPHRO - Accenture · Everest Group PEAK Matrix 1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page

Copyright © 2016, Everest Global, Inc.

EGR-2016-3-E-18757

Accenture

Key MPHRO delivery locations

Niagara

Charlotte

Manila

Chengdu

Dalian

Kumamoto

ShenzhenShanghai

Cebu

Delhi

MumbaiBangalore Chennai

Johannesburg

Buenos Aires

Belo Horizonte

Rio de Janeiro

Sacramento

San Antonio

Prague

Timisoara Bucharest

Ilocos

Source: Everest Group (2016)

Page 8: Everest Group PEAK Matrix™ for MPHRO - Accenture · Everest Group PEAK Matrix 1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page

Copyright © 2016, Everest Global, Inc.

EGR-2016-3-E-18758

Appendix

Page 9: Everest Group PEAK Matrix™ for MPHRO - Accenture · Everest Group PEAK Matrix 1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page

Copyright © 2016, Everest Global, Inc.

EGR-2016-3-E-18759

Everest Group classifies MPHRO service providers into

Leaders, Major Contenders, and Aspirants on the

Everest Group PEAK Matrix

1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page

2 Based on a combination of MPHRO revenue, number of active clients, number of new deals signed, and year-on-year growth of MPHRO revenue

Source: Everest Group (2016)

Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix1 for MPHRO

Top quartile performance

across market success

and delivery capability2nd or 3rd quartile

performance across market

success and delivery

capability

4th quartile performance

across market success

and delivery capability

High

Low

25

thp

erc

en

tile

75

thp

erc

en

tile

75th percentile

Ma

rke

t s

uc

ce

ss

2

(Re

ve

nu

e, gro

wth

,

an

d n

um

ber

of

active

clie

nts

an

d n

ew

de

als

)

Aspirants

Leaders

Major Contenders

Low High25th percentile

MPHRO delivery capability

(Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)

Page 10: Everest Group PEAK Matrix™ for MPHRO - Accenture · Everest Group PEAK Matrix 1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page

Copyright © 2016, Everest Global, Inc.

EGR-2016-3-E-187510

Service providers are positioned on Everest Group

PEAK Matrix based on evaluation of two key

dimensions

Measures the scope of

services provided based on

distribution of

Processes

ACV in geographies

Coverage of

geographies

Industries

Buyer size

Measures technology

capability and innovation on

the basis of

Technology model

employed

HR platform experience

Innovation in Cloud,

BPaaS, social, mobility,

analytics, and robotic

automation

Measures the satisfaction

levels2 of buyers across

Business driver

Process expertise

Implementation

Technology and

innovation

Relationship

management

Overall satisfaction

Measures success achieved in the

MPHRO market. Captured through

MPHRO revenue, number of active

clients, number of new deals signed,

and year-on-year growth of MPHRO

revenue

Measures ability to deliver services effectively.

Captured through five subdimensions

Measures the scale of

operations based on

Overall company

revenue

Percentage contribution

of MPHRO revenue to

the overall company

revenue

Scale ScopeTechnology solutions

and innovationBuyer satisfaction

Delivery capability

Ma

rke

t s

uc

ce

ss Major Contenders

Leaders

Aspirants

Measures the delivery

footprint based on

Number of delivery

centers across the seven

major regions1

Balance of the shoring

mix

Delivery footprint

1 North America, Latin America, Western Europe, EEMEA (Eastern Europe, Middle East, and Africa), India, China, and the rest of Asia Pacific

2 Measured through responses from three referenced buyers for each service provider

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Copyright © 2016, Everest Global, Inc.

EGR-2016-3-E-187511

Additionally, Everest Group confers the “Star

Performers” title to providers that demonstrate the

strongest forward movement over time on the PEAK Matrix

Year 1

Year 0

Service

provider

Capgemini and OneSource Virtual are not considered for Star Performer analysis due to non-participation in the PEAK Matrix analysis in 2015

2016 MPHRO Star

Performers

Delivery capability

Everest Group selects Star Performers based on the relative Year-on-Year (YOY)

movement of each service provider on the PEAK Matrix.

Delivery capability dimension

In order to assess advancements on

capability, we evaluate the performance of

each service provider on the PEAK Matrix

across a number of parameters including:

Annual growth in scale

Increase in scope of services

Expansion of delivery footprint

Increase in technology leverage and

investment in innovation

The “Star Performers” title relates to YOY performance for a given service provider and does not

reflect the overall market leadership position. Those identified as “Star Performers” may include

“Leaders”, “Major Contenders”, or “Aspirants”.

Market success dimension

In order to assess advancements on market

success, we evaluate the performance of each

service provider on the PEAK Matrix across a

number of parameters including:

Yearly ACV growth

Number of new contract signings

Value of new contract signings

The top quartile performers on each of the

specified parameters are identified and the “Star

Performer” rating is awarded to the service

providers with

The maximum number of top quartile

performances across all of the above

parameters, and

At least one area of top quartile performance

advancement in either dimensions of market

success or delivery capability

Ma

rke

t s

uc

ce

ss

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Copyright © 2016, Everest Global, Inc.

EGR-2016-3-E-187512

FAQs (page 1 of 2)

Does the PEAK Matrix assessment incorporate any subjective criteria?

Everest Group’s PEAK Matrix assessment adopts an objective and fact-based approach (leveraging service

provider RFIs and Everest Group’s proprietary databases containing providers’ deals and operational capability

information). In addition, these results are validated / fine-tuned based on our market experience, buyer interaction,

and provider briefings

Is being a “Major Contender” or “Aspirant” on the PEAK Matrix an unfavorable outcome?

No. The PEAK Matrix highlights and positions only the best-in-class service providers in a particular function/vertical.

There are a number of providers from the broader universe that are assessed and do not make it to the PEAK

Matrix at all. Therefore, being represented on the PEAK Matrix is in itself a favorable recognition

What other aspects of the PEAK Matrix assessment are relevant to buyers and providers besides the “PEAK

Matrix position”?

The PEAK Matrix position is only one aspect of Everest Group’s overall assessment. In addition to assigning a

“Leader”, “Major Contender” or “Aspirant” title, Everest Group highlights the distinctive capabilities and unique

attributes of all the PEAK Matrix providers assessed in its report. The detailed metric-level assessment and

associated commentary is helpful to the buyers in selecting particular providers for their specific requirements. It

also helps providers showcase their strengths in specific areas

What are the incentives for buyers and providers to participate/provide inputs to the PEAK Matrix research?

Participation incentives for buyers include a summary of key findings from the PEAK Matrix assessment

Participation incentives for providers include adequate representation and recognition of their capabilities/success in

the market place, and a copy of their own “profile” that is published by Everest Group as part of the “compendium of

PEAK Matrix providers” profiles

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Copyright © 2016, Everest Global, Inc.

EGR-2016-3-E-187513

FAQs (page 2 of 2)

What is the process for a service provider to leverage their PEAK Matrix positioning status ?

Providers can use their PEAK Matrix positioning in multiple ways:

– Issue a press release declaring their positioning/rating

– Circulate a customized PEAK Matrix profile (with clients, prospects, etc.)

– Quotes from Everest Group’s analysts could be disseminated to the media

– Leverage the PEAK Matrix branding across communications (e-mail signatures, marketing brochures, credential

packs, client presentations, etc.)

The provider must obtain the requisite licensing and distribution rights for the above activities through an

agreement with the designated PoC at Everest Group

Page 14: Everest Group PEAK Matrix™ for MPHRO - Accenture · Everest Group PEAK Matrix 1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page

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About Everest Group

Everest Group is a consulting and research firm focused on strategic IT, business

services, and sourcing. We are trusted advisors to senior executives of leading

enterprises, providers, and investors. Our firm helps clients improve operational

and financial performance through a hands-on process that supports them in

making well-informed decisions that deliver high-impact results and achieve

sustained value. Our insight and guidance empowers clients to improve

organizational efficiency, effectiveness, agility, and responsiveness. What sets

Everest Group apart is the integration of deep sourcing knowledge, problem-

solving skills and original research. Details and in-depth content are available at

www.everestgrp.com and research.everestgrp.com.