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Upside NEWS FROM THE WORLD OF WORK Logical Choice In what some experts call the biggest HR deal in the U.K. in the last two years, global defence and security company BAE Systems selected Logica to deliver multi-process HR outsourcing services for its employees in the UK. The six-year deal aims to increase efficiency and workforce optimisation in order to reduce operational costs and focuss on future growth. Under the agreement, Logica will design, build and run a transformed HR service based on Oracle's PeopleSoft Human Capital Management and Oracle E-Business Suite Payroll. Inc. and Advantage Resourcing Europe is consistent with our strategy for global expansion and industry leadership. We believe our strong success in Japan and our reputation as a market leader will align well with building a bridge to further offerings by adding the success and strong performance of the Advantage Resourcing organisation." Advantage will also see benefits from the transaction. "The acquisition really strengthened our Asia capabilities. We can leverage our global platform across RPO and MSP," Browne says. "What's exciting about Recruit is that it is a strategic buyer that is focussed on being one of the leaders in staffing globally. Motohara is a very experienced leader in staffing and has a vision for becoming one of the leading staffing companies in the world." Haydn Clulow, HR director, transformation, BAE Systems explains, "We recognise that our business needs both agility and flexibility if it is to respond successfully to our changing market landscape. We are pleased to have Logica on board and see them as a key partner in our drive to build the people management capability that will enable our future success." BAE Systems chose not to renew its contract with HR outsourcing provider Xchanging. The contract was worth £18m per year. This is Logica's second major European multi-process HRO contract award in the past 6 months following a similar deal with international retailer Ahold for their operations in Europe. Financial terms were not disclosed. Advantageous M&A Staffing firm Recruit has acquired the U.S. and U.K. subsidiaries of Advantage Resourcing International. This strategic move will allow Recruit to leverage Advantage's proven workforce solutions with its 250 locations globally and 22,000 employees. The amount of the sale was disclosed at $410 million. Cloud Burst Oracle expands its offering into the cloud with the acquisition of Taleo Corporation, a leading provider of cloud-based talent management for $1.9 billion. Taleo's positions its talent management cloud as helping organisations attract, develop, motivate, and retain human capital to improve performance and drive growth. Together, Oracle and Taleo expect to create a comprehensive cloud offering for organisations to manage their HR operations and employee careers. The combination is expected to help managers effectively manage careers throughout their entire employment, enable organisations to retain talent and optimise costs, and improve the employee experience through faster onboarding and better collaboration with team members via social media. In the wake of SAP's acquisition of SuccessFactors, opinions from the field were varied: "Recruit is the largest staffing organisation in Japan with a very deliberate strategy in improving its footprint in North America and Europe, the Middle East, and Africa," notes Karen Browne, president, Advantage xPO. "Advantage Resourcing International made a lot of sense in terms of their end goal with its really strong management team and strong financial results over the last three years." Hitoshi Motohara, a director and the managing executive officer of Recruit, agrees: "The acquisition of Advantage Resourcing America "When I watch Oracle and SAP rapidly clean up whatever application is left on the market worth buying, my heart sinks for the future of the enterprise software business. For Oracle and SAP, it's all about maintaining the status quo and growing their considerable license revenue streams. They know they have to be seen to embrace the cloud, but all they really care about is protecting their customer bases and preventing upstart vendors sneaking in to disrupt their revenue model. And can you really blame them? It's economics 101."—Horses for Sources [6] HRO TODAY GLOBAL | WINTER 2012