saas vs bpo: friends or foes? -- overview & strategy

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www.HROA.org @HROA 1 BPO vs SaaS Friends or foes?

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During the first webinar in this 3-part series, we compared SaaS and BPO in light of design considerations, process ownership, security & risk, and deployment approaches. We were joined by experts from ADP, AonHewitt, ISG, and NorthgateArinso, who provided a real-world perspective on how innovative service delivery models can contribute to HR transformation and deliver long-term enterprise value. To Learn how you can put technology and process innovation to use in HR, listen to the full podcast posted at www.hroa.org/SaaSvsBPO featuring: Panel: • Colin Brennan, SVP of Product Management, Aon Hewitt • Chris Schmidt, Sr. Director of Product Marketing, ADP • Maribeth Sivak, Principal Consultant, Business Advisory Services, ISG Moderator: Michael Custers, VP of Global Alliances & Strategic Marketing, NorthgateArinso

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Page 1: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA1

BPO vs SaaSFriends or foes?

Page 2: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA2

Welcome & logistics

• Questions– Via chat

• Join the conversation – on Twitter– #hrtechchat

Page 3: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA3

About HROA

• Founded in 2003 - Global association • Open to anyone in the HR Outsourcing and

Transformation industry anywhere in the world: practitioner, buyer, provider, technology firm, advisor, consultant, or academic.

• to be the single recognized community for improving the quality, effectiveness, and efficiency of outsourcing as part of an overall HR service delivery strategy.

• www.hroa.org

Page 4: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA4

Today’s panel

Colin Brennan AonHewitt

Chris SchmidtADP

Maribeth SivakISG

Michael CustersNGA (NorthgateArinso)

Page 5: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA5

Defining SaaS and BPO

Page 6: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA6

SaaS vs 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)

Application

Middleware

Database

Operating System

Infrastructure

Configuration

Prov

ider

Man

aged

Cust

omer

Man

aged

Application

Middleware

Database

Operating System

Infrastructure

Configuration

Prov

ider

Man

aged

Business Process Outsourcing (BPO)

Transactions

Employee Contact

Transactions

Employee Contact

Employee PortalEmployee Portal

Traditional ERP

Application

Middleware

Database

Operating System

Infrastructure

Configuration

Cust

omer

Man

aged

Transactions

Employee Contact

Employee Portal

Page 7: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA9

Design ConsiderationsSaaS versus BPO

Page 8: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA10

Design 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 VerifyGlobal 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?

Page 9: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA12

Entry points & roll-out approach

Page 10: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA13

Entry Points & Roll-Out Approach

• Entry Points:– Internal shared service center or – Business Process Outsourcing

• Approach:– Global Blueprint for full functional scope– Phased rollout to deliver near term benefits

to the business, manage enterprise risk, leverage project resources and build upon early phase learnings

Page 11: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA14

User adoption & user experience

Page 12: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA15

User Adoption & User Experience

User Adoption• Modern user experience

drives adoption• Increased employee and

manager self-service • Productivity and cost

savings• Employee engagement

increases

User Experience• Usability - Consumer

grade experience• Agility – Readily

configurable• Visibility – Actionable

business analytics• Innovation – Next

Generation Tools

Page 13: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA16

Change management

Page 14: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA17

Page 15: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA18

Questions & comments

Page 16: SaaS vs BPO: Friends or Foes? -- Overview & Strategy

www.HROA.org @HROA19

Upcoming webinars

• Feb 26: operational considerations of SaaS vs BPO

• On March 12: how to prepare for implementation.

• www.hroa.org/SaaSvsBPO