Issue link: http://www.e-digitaleditions.com/i/94708
NEWS FROM THE WORLD OF WORK Upside BPO at Risk A new research paper from global insurance broker Lockton and global insurance carrier AIG highlights new risks and identifies best practices and solutions for business process outsourcing (BPO) and information technology (IT) outsourcing companies. Lockton and AIG offer practical insights on how BPO and IT outsourcing companies can deal with these risks, reduce their exposure, and deliver on expectations to both their shareholders and clients. The report includes a six-point plan for reducing professional liability claims for BPO and IT outsourcing firms along with 10 recommendations for improving their IT security. The report can be found at www.lockton.com. Global Payroll Outsourcing Spikes North American companies propelled the multi-country payroll outsourcing (MCPO) market that saw explosive growth of more than 30 per cent growth from 2008 to 2011, a rate expected to be in the high 20s through the next few years, according to a new market study by Everest Group. The firm's report examines the MCPO market's key business drivers, buyer adoption trends, solution characteristics, service provider landscape, and implications for buyers and service providers. Everest Group estimates the MCPO market at US$600 million and projects buyer adoption could boost the market up to as much as $1.3 billion by 2014. The report analyses MCPO deals that necessarily include the "payroll calculation" sub-process as part of the scope, include at least three countries in the same region or two countries but in different regions, consist of services provided to third-party clients, and include all industries and geographies. Other report insights about the MCPO market include: The Top 10 • North American- and European-headquartered companies drive the MCPO market to cover their long tails. • Latin America is the next frontier to be addressed from an MCPO perspective. While the buyer demand is high, there are limited robust options available in this region currently. • Technology is vital to the MCPO offering, thus service providers are investing heavily in various technology fronts. 1. McKinsey & Company 2. Bain & Company 3. Roland Berger Strategy Consultants 4. Booz & Company 5. Oliver Wyman 6. OC&C Strategy Consultants 7. A.T. Kearney Europe 8. Monitor Group 9. Simon-Kucher & Partners 10. Frontier Economics Ltd. • Multiple technology models are at play. Multiple factors, including employee population distribution, influence the choice of a technology model. • Increased market maturity and availability of wider options might instigate some buyers to look for switching opportunities instead of auto-renewal in their second generation considerations. The key demand drivers of the market are cost reduction, improved management control, risk management and compliance, and business expansion. The Ranks of Consultants McKinsey & Company emerged as the best consulting firm to work for in Europe as Vault.com unveiled its European Consulting Rankings for 2013. The powerhouse consulting firm was once again the top choice of European consultants, edging out Bain & Company in the Vault European Consulting 25. McKinsey also repeated its position as the Most Prestigious Consulting Firm in Europe, while posting strong results in Vault's European Best to Work For and Practice Area rankings. The rankings are a result of Vault's annual European Consulting Survey. More than 2,500 practicing consultants assessed peer consulting firms on a scale of 1-to-10 based on prestige (respondents were unable to rate their own employers and rated only firms with which they were familiar). Consultants were also asked to rank their own firm's quality of life in a variety of "best to work for" categories, such as firm culture, compensation, overall satisfaction, and diversity among others. A weighted formula was used to combine findings from both prestige and best to work for rankings to create the European Consulting 25. FALL 2012 | www.hroglobal.com [9]