HfS Blueprint Report SuccessFactors Services 2016 Excerpt for ...

Architects Of The As-a-Service Economy

Khalda De SouzaPrincipal Analyst, Services [email protected]

Charles SutherlandChief Research [email protected]

HfS Blueprint Report

SuccessFactors Services 2016Excerpt for AccentureMarch 2016

Proprietary │Page1©2016 HfSResearch Excerpt for Accenture

TOPIC PAGE

ExecutiveSummary 2

Research Methodology 14

SuccessFactors ServicesintheAs-a-ServiceEconomy 19

ServiceProviderGrid 21

ServiceProviderProfile 25

MarketWrap-UpandRecommendations 28

About theAuthors 34

Table of Contents

Executive Summary


Introduction to the HfS Blueprint Report: SuccessFactors Services 2016

n The 2016 HfS SuccessFactors Services Blueprint Report continues our theme of looking atservices sets regarding the planning, implementation, management, and operations ofleading software-as-a-service platforms.

n Unlike other quadrants and matrices, the HfS Blueprint identifies relevant differentialsbetween service providers across a number of facets under two main categories: innovationand execution.

n This Blueprint Report looks at the innovation and execution capabilities of thirteen serviceproviders in detail and provides a mini profile of capabilities for two more. These serviceproviders are the leaders in this market and the major partners for SAP SuccessFactors indelivering this platform to enterprises today.


SuccessFactors: Technologies and Servicesn HfS has defined the services set for this blueprint as built around all of the modules in the

SuccessFactors Human Capital Management (HCM) suite. These include:

n Core HR: Employee central and employee central payroll

n SuccessFactors Talent Solutions: Recruitment, onboarding, learning, performance andgoals, compensation, succession, and development

n SuccessFactors Analytics Solutions: Workforce analytics, workforce planning

n Social Collaboration: SAP Jam

n There are new releases or enhancements every quarter.

n SAP SuccessFactors provides the following services:

n SAP Cloud Professional Services: This includes configuration and implementation advice.

n SAP Education for SuccessFactors HCM Suite: This includes training and consultingservices, including best practice advice.


SAP PartnerEdge: Service Programn SAP PartnerEdge Program: SAP has simplified its partner program, which extends to

SuccessFactors service partners. It is a tiered system that includes partners from thosefocusing on resale to those providing deep business insights. All partners have access toinformation, advice, training, and tools. There are two broad levels of partners:

n SAP PartnerEdge Open Ecosystem for Service: This is for smaller consulting and systemintegration providers and practices initializing their relationship with SAP andSuccessFactors. Partners have access to some free information, training, and tools.

n SAP PartnerEdge for Service: This is for established SAP SuccessFactors service providersand practices. Partners must pay an annual fee and commit to continuous improvementto remain part of the PartnerEdge program. There are three levels of partnership withinthe SAP PartnerEdge Service program: Silver, Gold, and Platinum. Partners can move upto the next level by accruing Value Points, but Platinum partners are selected bySuccessFactors invitation only.

n Run SAP Solutions: This includes SAP Outsourcing and Operations partners. SAP providescertification of local or global support capabilities. Examples include IBM and TCS.

n SAP is transitioning SuccessFactors service provider partners to the PartnerEdge program,including re-aligning partner levels to the new definitions (Silver, Gold, Platinum).


Additional SAP Partner Levelsn Partners can also achieve the following partner levels:

n Global Strategic Services partner: Examples include Accenture, Capgemini, Cognizant,HCL, IBM, NTT Data, and Wipro.

n Global Services partner: Examples include EY, Hexaware, NGA Human Resources, andTCS.

n Global Value Added Reseller: This includes nearly all the providers included in theBlueprint.

n Business Process Outsourcing partner: Examples includeHCL, TCS, and Wipro.

n Other partner levels include: Global Technology Partner, Education Partner, andApplication Development Partner.

n A service provider may hold a specific partner level for just one country or region.

n In the SuccessFactors Service Blueprint, we highlight the Silver, Gold, or Platinum levels thateach service provider has achieved, where this has been finalized.


SuccessFactors Tools and Certifications

n SuccessFactors Workbooks: These outline how to configure the different modules. Serviceprovider partners can use and enhance these for clients.

n Intelligent Services: SuccessFactors launched Intelligent Services in August 2015. Thisautomates process steps in SuccessFactors and includes intelligent services that provide acustomized end-user experience.

n Partner Portal: Service provider partners have access to a partner portal that suppliesinformation, advice, training, and tools.

n SAP Product Road Maps: These explain the planned development of a feature or function ofeach product for clients. This includes recent changes available, upcoming developmentreleases in 12 to 18 months, and proposed themes for products beyond this time.

n Certifications: Service provider partners can achieve certifications in each of theSuccessFactors HCM suitemodules.


SuccessFactors Services Value Chain

PLAN

•BusinesscasedevelopmentforSaaSdeployment•Cloudadvisoryservices,includingcloudreadinessassessment•Compliance,riskmanagement,andsecurityconsulting•HCMstrategyconsulting•SuccessFactorsstrategyconsulting,processdesign,andconfigurationsupport•Changemanagementconsulting•Governancestructure

IMPLEMENT

•Projectmanagement•Datamigration•Customdevelopmentservicestocomplywithindustry,geography,orotherbusinessrequirements•Integrationservices•Extensions,tools,orcustomdevelopmenttofillfunctionalgapsofSuccessFactors•Testing•Initialusertraining•Changemanagementexecution

MANAGE

•Governancemanagement•Upgradesupport•SuccessFactorshelpdesk•Ongoingintegration•Ongoingtesting•Ongoingtraining•SuccessFactorsuptime,dataaccuracy,andaccessresponsibility•Ongoingemployeeadoptionsupport• Just-in-timeusabilitycontent•Periodicsolutionandservicedeliveryreviews•IdentificationofrequiredchangesinSuccessFactorsorprocessestoaccountforchangingbusinessrequirements,e.g.,M&A,divestment,andnewinvestmentsinIT

OPERATE

•Businessprocessoutsourcing(BPO).E.g.,HCMBPO,marketingBPO,etc.

OPTIMIZE

•NewSuccessFactorsmodulevalueidentificationandbenefitanalysis•OngoingSuccessFactorsmoduleadds/upgrades,migrations,andconsolidation•OngoingHCMstrategyandsystemalignment•HCManalyticsandmeasurement•Bestpracticecontentcuration•Usercommunityfacilitation


Implementation Services Represent Half of the Current SuccessFactors Service Market ApproximatesplitofSuccessFactorsServiceBusinessbyValueChainService*

*AggregateresponsesofserviceprovidersinthisBlueprint

15%

50%

17%

11%

7%Plan

Implement

Manage

Operate

Optimize

Source:HfSResearch,March2016


Key Highlights: SuccessFactors Services Value Chainn Plan:Enterprisesneedassistancetounderstandthetechnical,organizational,andlegal

implicationsofusingaSaaSsolution.ThisisacriticalphasetogetrightinordertoobtainthemaximumbusinessbenefitsfromaSuccessFactorsdeployment.Weexpectconsultingopportunitiestogrowrapidlyoverthenext12to18monthsdrivenbyincreasingindustryandregionalregulatoryneeds.

n Implement:ThisisthebiggestpartoftheSuccessFactorsservicemarkettoday.DeploymentsrangefromsinglecountrytoglobalandfromsinglemoduletotheentireHCMsuite.Inthelattercase,enterprisestendtoimplementoneorafewmodulesatatime.

n Manage:Thisisstillanafterthoughtformanyenterprisebuyerswhotendtonegotiateashort-termcontractwiththeimplementationpartnerthattypicallycoversjustafewmonthspost-deploymenttoironoutanyearlyissues.Therearealsoafewexamplesoflonger-termsupportservicecontractsinthemarket.Asthemarketmaturesandenterprisesrealisethattheyneedongoingsupport,weexpectthemanagementservicesmarkettogrow,especiallywithanas-a-serviceflavorofflexibleservicesandad-hocaccesstoadviceandskills.

n Operate:Thereisverylittleworkintheoperatephaseofthevaluechain.ServiceproviderswithgeneralHRBPOcapabilitiesarebestplacedtotakeadvantageofthismarketasdemandgrows,butwedon‘texpecttoseerapidgrowthintheshortterm.

n Optimize:Thisremainsthesmallestpartofthemarkettoday,butweexpectittogrowaggressivelyandcreaterealopportunitiesforserviceprovidersabletooffertheflexibilityofservicesrequiredinthisphaseespeciallyforalignmenttotheevolvingHRstrategy.


Key Highlights: SuccessFactors Services Market Drivers

n LackofstandardizedglobalHRprocesses:ThisisthemostcompellingreasonenterprisesareseekinganHRsolutiontoday.Clientswanttoachievetechnicalstandardizationtofacilitatebetterprocessmanagementacrosssites.

n InadvertentpurchaseofSuccessFactors:SomeenterpriseshaveboughtlicensesforafewoftheSuccessFactorsmodules,typicallyEmployeeCentralandRecruitment,becausetheywereincludedinabundlefromSuccessFactors.Theseclientsneedassistancetoimplementandgetthemaximumbenefitsfromthemodules.

n SAPlinkimportant:EnterprisebuyersconfirmthathavingSAPERPinthebackofficeremainsastrongreasontoselectSuccessFactorsfortheirSaaSHRsolutionsoveralternativessuchasWorkday.

n Interestinanalytics:ClientswhohavesuccessfullyimplementedsomeSuccessFactorsmodulesandhavegoodvisibilityoftheirHRoperationareincreasinglyinterestedinthevaluethatanalyticscanaddtotheirHRprocess.


Key Highlights: SuccessFactors Services Marketn HRfunctionandprocessexpertiseiskey:Serviceprovidertalentinvestmentand

enterprisebuyerdemandarefocusedondeepHRfunctionandprocessexpertise.Buyersarenotasinterestedintheserviceprovider’sknowledgeoftheirindustrysectorastheyareaboutitsabilitytosharebestpracticesinHRandhowtogetthemaximumbusinessbenefitsfromSuccessFactorsdeployment.

n MixoftypeofSuccessFactorsserviceproviders:TheSuccessFactorsservicemarketconsistsofITserviceprovidersandHRspecialistserviceproviders.Thismakesitalargeandcomplicatedserviceecosystem.

n Cloudandhybridsolutionslandscape: Whilesomeenterprisesdecidetodeployafullcloudsolution,othersareoptingforahybridmixofon-premiseandcloudHRsolutions,requiringintegrationskillsfromserviceproviders.

n Demandforserviceskillstosupportallthemodules:ThetopthreemodulesimplementedareRecruitmentManagement,PerformanceandGoals,andLearning.However,theclientswespoketorangedfromthoseimplementingjustoneoftheHCMmodulestothoseworkingwiththeentiresuite.

n PayrollandWorkforceAnalyticsaregrowthmarkets:Serviceproviderswhohavedevelopedservicesandsolutionstosupportandexpandthepayrollandanalyticsmoduleshaveopportunitiestogrow,astheseareasshouldincreaseinpopularityinthenext12to18months.


Key Highlights: SuccessFactors Services Marketn Talentshortage:SimilartootherSaaSservicemarkets,likeforWorkdayandSalesforce,

skillsarescarceintheSuccessFactorsservicemarket.Thisissomewhatmitigatedbytheopportunitytocross-trainSAPandHCMconsultantsinSuccessFactorsmodules.

n Buyersprefertocontractconsultingskillsseparately:MostSuccessFactorsserviceenterprisebuyersprefertoworkwithaspecialistconsultingproviderfortheplanningphaseoftheSuccessFactorsserviceengagementinordertogetaccesstowhatisbelievedtobethemostadvancedHRadvice.ThiscanbewithoneoftheBigFour,includingDeloitteandEY,aspecialistboutiqueconsultingfirm,orevenjustin-houseskills.Alltheblueprintandroadmapworkisfinalizedinthisstage.

n Implementationserviceprovidersselectedfortechnicalservices:Enterprisescontractimplementationproviderstodeploytherequiredmodulesinaccordancewiththeroadmapestablishedintheplanphase.Thereisoftenlittlescopeforimplementationserviceproviderstobringvisionandthoughtleadershiptotheengagement.Interestingly,clientsoftenrealizepost-deploymentthattheywouldhavevaluedtheimplementationproviderdeliveringmorebusiness-focusedadvice.

n IntelligentServicesstillingrowthphase:InAugust2015, SuccessFactorslaunchedIntelligentServices,whichautomatestheprocessstepsinSuccessFactors.Asyet,itdoesnotseemtohavemademuchimpactonserviceproviders,butthismaychangeoverthenextfewyears.

Research Methodology


Research MethodologyDataSummary

n ThedataforthisBlueprintwerecollectedinQ42015andQ12016,coveringservicebuyers,serviceproviders,andadvisors/influencers ofSuccessFactorsservices.

ThisReportIsBasedOn:n TalesfromtheTrenches:Interviewswereconducted

withbuyerswhohaveevaluatedserviceprovidersandexperiencedtheirservices.Someweresuppliedbyserviceproviders,butmanyinterviewswereconductedbyHfSExecutiveCouncilmembersandparticipantsinourextensivemarketresearch.

n Sell-SideExecutiveBriefings:Structureddiscussionswithserviceproviderswereintendedtocollectdatanecessarytoevaluatetheirinnovation,executionandmarketshare,anddealcounts.

n PubliclyAvailableInformation:Financialdata,websiteinformation,presentationsgivenbyseniorexecutives,andothermarketingcollateralwereevaluated.

ParticipatingServiceProviders

AdditionalMiniProfiles


HfS Blueprint Scoring Percentage BreakdownEXECUTION 100%

Quality ofCustomerRelationships 43.08%QualityofAccountManagementTeam 21.45%HowServiceProvidersEngageClientsandDevelopCommunitiesAroundSuccessFactors

8.84%

HowServiceProvidersIncorporateClientFeedback 12.79%

Real-WorldDeliverySolutions 50.24%ActualDeliveryofServices forEachSub-Process 20.50%

Plan 4.10%Implement 4.10%Manage 4.10%

Operate 4.10%Optimize 4.10%ScaleofDesign, Implementation,andManagementCapabilities 11.73%UsefulnessofServicestoSpecificClientNeedsofAll Sizes 18.01%

FlexibilitytoDeliverEnd-to-End SolutionsandPointSolutions 7.97%ExperienceDeliveringIndustry-SpecificSolutions 10.04%

FlexiblePricingModelstoMeetClientNeeds 6.68%

INNOVATION 100%Vision forValueDelivery 27.69%

ConcretePlanstoDeliverValueBeyondCost 8.81%PartnershipStrategy 18.88%

VisionforSuccessFactors’EffectivenessinClients 35.64%AbilitytoLeverageValueDrivers 36.68%

IntegrationofThird-PartyCapabilitiesintoSuccessFactors’Solutions 18.14%InvestmentinProprietaryTools,Accelerators,andSolutions 18.53%

TOTAL 100.00%


Blueprint Scoring Definitions: Execution

EXECUTION Howwelldoestheproviderexecuteitscontractualagreement,andhowwelldoestheprovidermanagetheclient/providerrelationship?

QualityofCustomerRelationships Howengagedareprovidersinmanagingtheclientrelationshipbasedonthefollowingmetrics:QualityofAccountManagement,serviceprovider/clientengagement,andincorporationoffeedback?

QualityofAccountManagementTeam Whatisthequalitylevelofprofessionalskillsintheaccountmanagementteam?

HowServiceProvidersEngageClientsandDevelopCommunitiesAround SuccessFactors

HowwelldoestheserviceproviderengageclientsanddevelopclientcommunitiesaroundSuccessFactors?

HowServiceProvidersIncorporateClientFeedback

Howhaveserviceproviderstakenfeedbackandincorporatedthatfeedbackintotheirservices?

Real-WorldDeliverySolutions Doesthesolutionprovidedcomparefavorablytotheserviceagreeduponwhentakingintoaccountthedeliveryofservicesforeachsub-processandgeographicfootprintandscale?

ActualDeliveryofServicesforEachSub-Process

Takingintoaccounteachsub-processandtheentiremacroprocess,doeseachsub-processadd uptothesuccessfuldeliveryoftheservicebeingprovided?

ScaleofPlanning,Implementation,andManagementCapabilities

DoestheserviceproviderhavescaleinPlanning,Implementation, andManagementCapabilitiesregardingSuccessFactors,includingtheavailabilityofcertificationsatalllevels?

UsefulnessofServicestoSpecificClientNeedsofAllSizes

Howflexibleandexperiencedareproviderswhentailoringsolutionsbasedonclientsize,location,andtypeofsolution(end toendandsinglepoint)?

FlexibilitytoDeliverEnd-to-EndSolutionsandSingle-PointSolutions

Howflexibleareproviderswithdeliveringmulti-processend-to-endsolutionsversussingle-pointsolutions?

ExperienceDeliveringIndustry-SpecificSolutions

Howwelldoestheproviderdeliverindustry-basedsolutions includingFullforce (forexample, depthinverticalssuchasinsurance,retail)

FlexiblePricingModelstoMeetCustomerNeeds Howflexibleareproviderswhendeterminingthepricingofcontracts?Aretheywillingtomakeinvestmentsintheclient’sfirmforlong-termgrowth?


Blueprint Scoring Definitions: Innovation

INNOVATION Innovationisthecombinationofimprovingbothservicesandbusinessoutcomes.

VisionforValueDelivery Thestrategyforthedeliveryofservicestoeachpartofthevaluechain ofprocesses.

ConcretePlanstoDeliverValueBeyondCost Whataretheplansoftheserviceprovidertodelivervaluebeyondcostsavingsalone?

PartnershipStrategy HowdoestheserviceproviderintegratewithotherpartiesintheSuccessFactorsecosystem(includingSuccessFactorsitself)todelivervaluetoclients?

VisionforSuccessFactors’ EffectivenessinClients What isthevisionoftheserviceproviderfortheevolutionofitsSuccessFactorsservicesoffering, andhowwillitcontributeovertimetoclienteffectiveness andvaluecreation?

AbilitytoLeverageValueDrivers Howwellhaveprovidersintegratedvaluedriversintotheirservices?Examplesincludethird-partysolutions,internalinvestments,andmore.

IntegrationofThird-PartyCapabilitiesintoSuccessFactorsSolutions

Howwelldoestheproviderleveragenewtechnologies/enhancements,mobilityfunctionality,andcloudcapabilitiesintoitssolutions?

InvestmentinProprietaryTools,Accelerators,andSolutions

Whatistheproviderdoingto investinproprietarycapabilities,tools,accelerators,andothersolutionstoenhancethevalueofSuccessFactorsforclients?

SuccessFactors Services in the

As-a-Service Economy


SuccessFactors Services Incorporate the Ideals of the As-a-Service Economy

IDEAL AS-A-SERVICEIDEALDEFINITION

NON-EXISTENT

INITIAL EXPANSIVE EXTENSIVE ALL-PERVASIVE

Write-OffLegacyUsingplatform-basedsolutions,DevOps,andAPIecosystemsformoreagile,lessexception-orientedsystems 2016

DesignThinkingUnderstandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds 2016

Brokers ofCapability

Orientinggovernance tosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps 2016

CollaborativeEngagement

Ensuring relationshipsarecontractedtodrivesustainedexpertiseanddefinedoutcomes 2016

IntelligentAutomation

Using ofautomationandcognitivecomputingtoblendanalytics,talent,andtechnology

2016

AccessibleandActionableData

Applyinganalyticstechnologies,processesandresourcesontorelevantdatasetstoderiveinsightsthatcanhelpimproveanenterprise 2016

HolisticSecurityProactivelymanagingdigitaldataacrossservicechainofpeople,systems,andprocesses 2016

Plug-and-PlayDigitalBusinessServices

Plugginginto“readytogo”business outcome-focused, people/process/technologysolutionswithsecuritymeasures

2016

Service Provider Grid


TodistinguishserviceprovidersthatshowcompetitivedifferentiationinaparticularlineofdeliverywithprogressinrealizingtheAs-a-ServiceEconomyofbusinessoutcome-oriented,on-demand,talent+technologyservices,HfSawardstheseproviderstheAs-a-ServiceWinners’Circledesignation.

Guide to the Blueprint Grid

EXECUTION INNOVATION

As-a-ServiceWinners’ CircleshowsexcellencerecognizedbyclientsintheEightIdealsinbothexecutionandinnovation

Collaborative relationshipswithclients,servicesexecutedwithacombinationoftalentandtechnology asappropriate,andflexiblearrangements

Articulatesvisionanda“newwayofthinking,”hasrecognizable investmentsinfuturecapabilitiesandstrongclientfeedback,and isdrivingnewinsights andmodels

HighPerformersdemonstratestrongcapabilitiesyetlackaninnovativevisionormomentuminexecutionagainstthevision

Executesomeofthe followingareaswithexcellence:worthwhilerelationshipswithclients,servicesexecutedwith“greenlights,”andflexibilitywhenmeetingclients’needs

Typically, describeavisionandplanstoinvestinfuturecapabilitiesandpartnerships forAs-a-Serviceandillustratean abilitytoleveragedigitaltechnologiesand/ordevelop newinsightswithclients.

High Potentialsdemonstratevisionandstrategybuthaveyettogainmomentumintheexecutionofit

Earlyresultsandproof points fromexamplesinnewserviceareasorinnovativeservicemodels,yetlackscale,broad impact,andmomentuminthecapabilityunder review.

Well-plotted strategyandthoughtleadership,showcaseduseofnewertechnologiesand/orroadmap,andtalentdevelopmentplans

ExecutionPowerhousesdemonstratesolid,reliableexecution,buthaveyet toshowsignificantinnovation orvision

Evidence ofoperationalexcellence;however, stillmoreofadirectiveengagementbetweenaserviceprovideranditsclients.

Lack ofevidentvisionandinvestmentinfuture-oriented capability,suchasskillsdevelopment, “intelligentoperations,”ordigitaltechnologies.


I

HfS Blueprint Grid: SuccessFactors ServicesINNOVA

TION

EXECUTION

ExcellentatInnovationandExecutionInvestinginInnovationtoChange

BuildingAllCapabilities ExecutionIsAheadofInnovation

AS-A-SERVICEWINNERS’CIRCLE

EXECUTIONPOWERHOUSES

HIGHPOTENTIALS

HIGHPERFORMERS

InfosysTCS

HCL NTTData

Cognizant

IBM

Capgemini

NGAHR

Wipro

EY

Hexaware

AccentureAasonn


Major Service Provider Dynamics: Highlights

EXECUTION

• AccountManagement:Strongaccountmanagementthatcreatesapartnershipwithclientsisacriticalcapabilitytoensureclientsatisfaction.ManyoftheserviceprovidersintheBlueprinthavegoodaccountmanagementskills,butclientswereparticularlycomplimentaryaboutAccenture,EY,HCL,Infosys,andTCS.Accenture’sclientsalsohighlighteditsstrongaccountmanagementskillsinthepost-deploymentsupportphaseoftheengagement,whichisrare.

• ScaleofDesign,Implementation,andManagementCapabilities:SuccessFactors’serviceclientsselectimplementationserviceprovidersbasedontheircapabilitiesandgeographicalscale.MostoftheprovidersinthisBlueprinthavegoodcapabilities.ThosethatstoodoutincludeAccenture,Aasonn,HCL,IBM,NGAHumanResources(NGAHR),andNTTData.

• Flexibility:ThemostsuccessfulSaaSengagementsareveryflexibleintermsofbeingabletoscaleservicesupanddownandtheassociatedpricingmodels.Inaddition,flexibilityisakeycomponenttomodernSaaSmanagementandoptimizationservices,whichprovideon-demandaccesstoadvice,skills,andconsultants.ClientswereparticularlyimpressedwiththeflexibilityofCapgemini,HCL,IBM,Infosys,NGAHR,andNTTData.

INNOVATION

• ConcretePlanstoDeliverValueBeyondCostSavings:ImplementationservicesformthelargestpartoftheSuccessFactorsmarkettoday,andtheseengagementsarelargelyfocusedoncost-effective,technicalcapabilities.Clientsare,however,impressedwithproviderswhoareabletoprovidevalueoverandbeyondthetacticaldeployment.ClientshighlightedthatAccenture,Aasonn,EY,Cognizant,HCL,IBM,Infosys,NTTData,andWiprowereparticularlygoodatdeliveringvalue.

• VisionforSuccessFactors’Effectiveness:HavingavisionforwheretheprocessessupportedbySuccessFactorsareheadedinthefutureisanimportantelementofinnovation.WesawthisvisioncomeoutparticularlyclearlyinAccenture,Aasonn,EY,IBM,NGAHR,andNTTData.

• InvestmentinProprietaryTools,Accelerator,andSolutions:ImplementingandmanagingSuccessFactors’deploymentsforclientsisenhancedbyhavingasuiteofuniquetools,accelerators,andothersolutionstomaximizetheattainmentofbenefitsforbothclientsandserviceproviders.Inourreviewoftheinvestmentsinthesecapabilities,wesawparticularfocusherefromAccenture,Capgemini,Hexaware,NGAHR,NTTData,andTCS.

Service Provider Profile


HfS SuccessFactors Services Value Chain: Key to Profilesn ValueChaincoverageisindicatedbyorangeshading.Alight-orangeshadingindicatesthatthe

serviceproviderpartiallyoffersthisservicetodayoritcurrentlyforms5%orlessofthecurrentSuccessFactorsbusiness, soitisinthegrowthstage.Awhiteboxwithblackletteringindicatesthattheserviceproviderdoesnotofferthisservicetoday.

Key

n EachprofilealsoincludesalistofacquisitionsandpartnersthatarerelevanttotheSuccessFactorsserviceofferings’developmentand/ordelivery.SAPisastrongpartnerforallserviceprovidersintheBlueprint.WehavenotlistedSAPineachindividualserviceproviderprofile.

Plan

Implement

Manage

Operate

Optimize

FullyOffered Today

PartiallyOfferedToday/InDevelopment/GrowthArea

NotOffered Today

FullValueChainOffered


Accenture

Partnerships KeyClients Operations TechnologyTools andPlatforms

Partnerships include:• Workforce

Software• Kronos• ADP• Benefit Focus• Open Text

Accenture targetslargeandmid-size enterprisesparticularly requiring complex HRtransformations.

Geographical coverage in order of revenue:North America, the UK,Continental Europe,Middle Eastand Africa, India, ANZand otherAPAC, LatinAmerica

Industry Coverage:Most industries

Some publicly disclosed clients include:• Alcatel-Lucent, AngloGold Ashanti, Comcast• Disney and Boston Scientific, EtihadAirways• NBCUniversal, Procter andGamble, Timken

• Partner Level:Platinum• Yearof Practice Established: 2009• Number of SuccessFactors-Certified Consultants:

435• Number of SuccessFactors Certifications: 591• TotalNumber in Practice: 1,200+• Number of Clients: 150+• Number of Engagements Completed orOngoing:

500KeyDeliveryLocations for SuccessFactors Practice:• EALA: UK,Den, Swe,Switz,Ger,Port, Sp,It,Fr,

Bel, Pol, Israel,S.Africa,ME,S.America• North America: United States,Canada,Mexico• APAC: Aus,NZ, Japan,China, S.Korea,

Singapore, Philippines, Malaysia, Thailand,India

• Accenture High-Velocity Talent and HR:Pre-configuredsolutions for fast implementation

• Packaged CloudMethodology for SuccessFactors: AccentureDeliverySuite(ADS) deliverymethodology for SuccessFactors

• Accenture SuccessFactors’ Data Conversion Toolkit• Accenture SuccessFactors’ Test Automation Toolkit• Accenture Human Capital Operating Model• Accenture's HR360 Diagnostic: Tool tocapture business

objectives and challenges• Accenture HR Auditand Compliance As-a-Service:

SuccessFactors’ extension onthe SAPHANAplatform.Accenture Clone and Testfor Cloud: SAPHANAcloud extensionfor Employee Central

• AccentureQuick Document Builder for SuccessFactors:Automates correspondence sent toemployees andmanagers

Strengths Challenges

• DeepUnderstanding oftheProduct: Accenture hasworkedwith SuccessFactors since 2007 andhelped tobuild theEmployee Central product in2011, before theSAPacquisition. Accentureand SuccessFactors jointlyimplemented the firstten projects of Employee Central. Accenture isalso supporting SAPtoimplement SuccessFactors internally. This experience increasesAccenture’s credibility as aSuccessFactors serviceprovider withdeep technical skills.

• Strong SuccessFactors Services Capabilities: Accenture has thelargestSuccessFactors practiceinthe Blueprint, including thenumber of certified consultants. Thisisunderpinned byateam ofmore than 8,500 professionals focused on thehuman capitalmarket. Accenture offers thecomplete value chain of SuccessFactors services. In itsdifferentiating flexible factorymodel forapplication outsourcing services, resources can be shared across engagement teams, leveragingthenecessary skillsand capacity on demand.

• Scale: Accenture has themost comprehensive range of SuccessFactors servicedelivery centersinthe Blueprint, withcenters ineveryregion intheworld. Clients highlighted geographical scaleasastrength for Accenture.

• Focus onThought Leadership and Vision: Accenture identifies innovation inHR, aligningstrategieswith clients’ digitalvision andwithitsown research. Access toskillsin Accenturesoftware also brings akeydifferentiator toAccenture inthismarket.

• Delivering Value and Being Responsive: Accenture’s highest reference scores areforincorporating feedback and delivering valuebeyond cost savings. One reference said thatAccenture scored “an absolute 10” out of 10for delivering value.

• Continued Investment inTools: Asaleader inthismarket,Accenture should continue toextend and innovate theHANAcloud platforms, especially for industry sector-focused solutions, which arerareinthismarket.

• Strengthen Capabilities in Payroll:Accenture shoulddevelop andstrengthen itscapabilities inSuccessFactorspayroll services. This isagrowthareain themarket.

• Growth in APAC and LATAM: Mostof Accenture’sSuccessFactors service business comes from themainregions of North America, the UK,and Europe. Given itsscale, Accenture has opportunities to strengthen itsbusiness in LatinAmerica and APACinthe next fewyears.

• Clients NotAlways Seeing the Vision: Afewclientshighlighted thatAccenture didnot alwaysbring thoughtleadership totheengagement. Thisissurprising, givenAccenture’s strength inthis area.This ispartlydue toclients contracting for implementation workonly havingalreadyset theroadmap, including the vision in-house. Italso points toapossible opportunity for Accenture deliveryteams toidentify client demands and capitalize on newrevenue possibilities.

BlueprintLeadingHighlights

• Quality of AccountManagement

• Incorporate CustomerFeedback

• Geographic Scale• DeliverValueBeyond Cost• Vision• Investment inProprietary

Tools

Winners’ CircleThelargestpracticeintheBlueprint,withahistoricrelationshipwithSuccessFactorsandcomprehensivegeographicalscale

Plan

Implement

Manage

Operate

Optimize

Market Wrap-Up and Recommendations


SuccessFactors Services Buyers: Service Provider Selection

Top three SuccessFactors service provider selection criteria:

n Existing relationship: Most of the clients we spoke with selected their SuccessFactorsservice provider based on the fact that they had an existing relationship. Clientsrecognize that selecting a service provider that understands their business priorities is abig advantageover selecting a new provider who would need to learn this.

n Price: Price remains a top-three selection criteria for clients, but there is an increasingawareness of the underlying value delivered for the price paid. Purely being cost-effective is not an advantage on its own. Clients like to know what they are paying forand receiving business value.

n Capabilities and scale: The third most important SuccessFactors service providerselection criterion is technical capabilities to deploy the different HCM suite modules.Enterprises with international offices also require proof that the service provider hasdelivery capability in different countries and/or a good understanding of local laws, HRregulations, and business culture.


SuccessFactors Services Buyers: Client Satisfaction

Top three contributors to client satisfaction:

n HR process skills knowledge: SuccessFactors service clients define value in terms of theservice provider’s ability to share HR process best-practice experience and advice. Thisincludes providing a holistic view of the HR process beyond the individual technicalmodule deployment.

n Account management: Good account management is strongly aligned to high clientsatisfaction rates. Clients appreciate working with a person or team that is committed tounderstanding technical and business issues and being responsive to all requests.

n Flexibility: Clients expect and appreciate flexibility in engagements. Even with a well-thought-out roadmap, there are often required changes or tweaks in the deploymentphase. Clients appreciate service providers who are flexible to tweak service delivery andoffer flexibility in the associated pricing models. Contracts with strict statements of workare not the norm in successful SaaS services engagements.


Recommendations: Service Providersn Invest in functional understanding and adopt a holistic approach to HCM: Clients

highlight that HR-process best-practice advice is the single most important definition ofreal value in a SuccessFactors service engagement. Service providers with an HRbackground, such as NGA HR and those with strong HCM practices, are in anadvantageous position. These and other service providers must focus on hiring talentwith HR process skills and experience.

n Partner for or market consulting services capabilities: Enterprises tend to contractSuccessFactors consulting services separately. Service providers with little or noSuccessFactors consulting service capabilities should consider partnering with a strongconsulting provider to offer this to clients and to ensure implementation servicereferrals. Service providers that have invested in SuccessFactors consulting servicesneed to aggressively market these to existing and potential clients to ensure beingconsidered on RFP short lists.

n Bring the vision to implementation services: Service providers should offer business-oriented advice in implementation service engagements, for example, providing aholistic view of the HR process versus purely deploying the modules. Enterprises do nottend to ask this of their implementation partners as they do not expect to need it, butafter deployments, they admit that this would have brought important added value tothe engagement. Service providers must be proactive in sharing their business-focusedknowledge and capabilities with clients so that they are fully aware of the servicesavailable to them.


Recommendations: Service Providersn Upsell management services more aggressively: Service providers should be proactive

in explaining the importance of post-deployment management services to clients. Toomany SuccessFactors implementation service providers are missing clear opportunitiesto upsell management services.

n Invest in tools and technologies: Service providers should continue to invest in toolsand technologies to enhance their SuccessFactors service offerings. Most of the serviceproviders in the Blueprint have made good investments in this area, but there are still alot of opportunities for growth. In particular, investments in HANA extension tools andindustry-focused templates and tools will stand out in this crowded market as cleardifferentiators.

n Invest in account management skills: Service providers should prioritize strengtheningaccount management skills to foster deep relationships with clients. This is an importantfactor in client satisfaction as well as a major consideration to engage the serviceprovider for additional work.

n Be flexible: Enterprises like to work with service providers who are flexible. Serviceprovider teams should prioritize client needs and deliver the required service, withoutbeing constrained by strict contracts. Flexibility is also a key element to successfulmanagement and optimization services, where access to specialists is preferred on anon-demand basis.


SuccessFactors Services Are Incorporating the Ideals of the As-a-Service Economy

IDEAL AS-A-SERVICEIDEALDEFINITION

NON-EXISTENT

INITIAL EXPANSIVE EXTENSIVE ALL-PERVASIVE

Write-OffLegacyUsingplatform-basedsolutions,DevOps,andAPIecosystemsformoreagile,lessexception-orientedsystems

20162017

DesignThinkingUnderstandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds 2016 2017

Brokers ofCapability

Orientinggovernance tosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps 2016 2017

CollaborativeEngagement

Ensuring relationshipsarecontractedtodrivesustainedexpertiseanddefinedoutcomes

20162017

IntelligentAutomation

Using ofautomationandcognitivecomputingtoblendanalytics,talent,andtechnology 2016 2017

AccessibleandActionableData

Applyinganalyticstechnologies,processesandresourcesontorelevantdatasetstoderiveinsightsthatcanhelpimproveanenterprise

2016 2017

HolisticSecurityProactivelymanagingdigitaldataacrossservicechainofpeople,systems,andprocesses

2016 2017

Plug andPlayDigitalBusinessServices

Plugginginto“readytogo”business outcome-focused, people/process/technologysolutionswithsecuritymeasures

20162017

About the Authors


Khalda De SouzaPrincipalAnalyst,ServicesStrategies,HfSResearch– UnitedKingdom

Overview• KhaldaDeSouzacoversdevelopments inITandBPOacrossEuropeforHfSandglobally

coverstheemergence ofservicesaroundsoftwareasaservice (SaaS)offerings.• Shehasextensive experience inprovidingstrategic advicetobothITservices providersand

customer organizationsglobally.Forproviders,thisincludes, butisnot limitedto,channelstrategies, productpositioning, competitive intelligence, markettrends,andforecastanalysis.Forclients, Khaldahasprovidedinsightfulguidance onsourcingandvendorselection strategies.

PreviousExperience• PriortoHfS,Khaldawasasenior-level ITservicesresearch analystatGartnerfornearly20

years. Inthattime, shemanaged Europeanresearchforseveralareas, includingnetworkandITsecurityandbusinessapplications. Khaldahasledkeyresearch deliverables,suchasMagicQuadrantsforbothEuropeandglobalmarketsatGartner.

Education• KhaldahasaBSc. fromAstonUniversityinInternational BusinessandFrench.

[email protected]


[email protected]

Overview§ CharlesSutherlandistheChiefResearchOfficeratHfS.Charlesisresponsiblefortheoverall

researchagendaforHfSacrossthe“as-a-service”economy.Hepersonallycoverstheareasofautomation,businessplatforms,supplychain,procurement,andvariousverticalprocesses.SincejoiningHfSin2013,Charleshashadtheopportunitytospeakatvariousindustryforums,includingNASSCOM,andhashadhisresearchcoveredwidelyinthebusinessandoutsourcingpressaswell.

PreviousExperience§ Charleshasbeeninthebusinessservicesmarketfor20years,includingpreviousrolesasthe

ChiefStrategyOfficerforaBPOserviceproviderandtheManagingDirector,GrowthandStrategy,forAccenture’sOperationsGrowthPlatform.Intheseroles,hehashadabreadthofexperienceinthoughtleadership,strategydevelopment,acquisitions,businessdevelopment,andlong-terminvestmentplanninginbothBPOandITO.

§ CharleshasalsohadGrowthandStrategyrolesforAccentureinInfrastructureOutsourcingandfortheCommunications,Media,andHighTechOperatingGroup.Priortothat,hewasaStrategyConsultantinLondonforAccenture,servingclientsintheMedia,Communications,andConsumerGoodsindustries.Ifyougoevenfurtherbackintime,hewasalsoaMarketingDirectorforOlivettiinCanadaandEurope.

Education§ MBAfromINSEADinFontainebleau,France§ HonorsBAinEconomicsandPoliticalSciencefromtheUniversityofToronto

Charles SutherlandChief ResearchOfficer,HfSResearch– Dallas,TX


About HfS Research

Wecoinedthe As-a-ServiceEconomy termbecauseweseeaprofoundchangeunderwaythatismoreall-encompassingthanasimplebusinessmodelorproductline.It'saglobalshiftthatwillleavefewsectorsofbusinessorsocietyuntouched.

TohelpourclientsandthemarketgettotheAs-a-ServiceEconomy,weservethestrategyneedsofbusinessoperationsandITleadersacrossfinance,supplychain,humanresources,marketing,andcoreindustryfunctionsinorganizationsaroundtheworld.HfSprovidesinsightfulandmeaningfulanalystcoverageofbestbusinesspracticesandinnovationsthatimpactsuccessfulbusinessoutcomes,suchasthedigitaltransformationofoperations,cloud-basedbusinessplatforms,servicestalentdevelopmentstrategies,processautomationandoutsourcing,mobility,analyticsandsocialcollaboration.HfSappliesitsacclaimed BlueprintMethodology toevaluatetheperformanceofserviceandtechnologyintermsofinnovatingandexecutingagainstthosebusinessoutcomes.

HfSeducatesandfacilitatesdiscussionsamongtheworld'slargestknowledgecommunityofenterpriseservicesprofessionals,currentlycomprising100,000+subscribersandmembers.HfSResearchfacilitatestheHfSSourcingExecutiveCouncil,theacclaimedelitegroupofsourcingpractitionersfromleadingorganizationsthatmeetsbi-annuallytosharethefuturedirectionoftheglobalservicesindustryandtodiscussthefutureenterpriseoperationsframework.HfSprovidessourcingexecutivecouncilmemberswiththeHfSGovernanceAcademyandCertificationProgramtohelpitsclientsimprovethegovernanceoftheirglobalbusinessservicesandvendorrelationships.

HfStrailblazedthefreemiumresearchmodel.Morethan75%ofourpublishedresearchrequiresjustafewcheckboxesinoursimpleregistrationtodownload—nosubscription,nohassles.

TolearnmoreaboutHfSResearch,[email protected].

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