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Copyright © 2014 Everest Global, Inc.
This document has been licensed for exclusive use and distribution by IBM-Kenexa
EGR-2014-3-E-1232
Everest Group PEAK Matrix™ for RPO Service Providers
Focus on IBM-Kenexa
September 2014
2Copyright © 2014, Everest Global, Inc.
EGR-2014-3-E-1232
Introduction and scope
Everest Group recently released its Recruitment Process Outsourcing – Service Provider Landscape with
PEAK Matrix™ Assessment 2014 report. This report analyzes the changing dynamics of the RPO landscape
and assesses service providers across several key dimensions.
As a part of this report, Everest Group updated its classification of 22 service providers on the Everest Group
Performance | Experience | Ability | Knowledge (PEAK) Matrix for RPO into Leaders, Major Contenders, and
Emerging Players. The PEAK Matrix is a framework that provides an objective, data-driven, and comparative
assessment of RPO service providers, based on their absolute market success and delivery capability. Everest
Group also identified seven service providers as the “2014 RPO Star Performers”, based on the strongest
forward movement demonstrated on the PEAK Matrix Year-on-Year (YoY).
Based on the analysis, IBM-Kenexa emerged as a “Leader”. This document focuses on IBM-Kenexa’s RPO
experience and capabilities, and includes:
IBM-Kenexa’s positioning on the RPO PEAK Matrix
Everest Group assessment of IBM-Kenexa
Detailed RPO profile of IBM-Kenexa
Buyers can use the PEAK Matrix to identify and evaluate different service providers. It helps them understand
service providers’ relative strengths and gaps. However, it is also important to note that while the PEAK Matrix
is a useful starting point, 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.
3Copyright © 2014, Everest Global, Inc.
EGR-2014-3-E-1232
We define RPO as transfer of ownership of all or part of
recruitment processes or activities on an ongoing basis
For this study, we include RPO deals in which:
A minimum of four or more recruitment processes are included
The outsourcing deal is active and is at least one year in deal length
The deal scope should not be limited to only temporary hires
The buyer employee size is 3,000 or more
This study does not include “out-tasking” arrangements (typically handled by recruitment agencies, staffing companies, or executive search
firms) that are managed on a project-by-project basis rather than through an ongoing long-term arrangement
Recruitment
Employer branding
Sourcing
Screening
Applicant tracking
Interview scheduling and
co-ordination
Assessment
Offer letter management
Background verification
Onboarding
Vendor management
Strategy
Judgment-intensive
Transaction-intensive
HR
strategy
Employee data management
Payroll
Benefits
Compensation
Recruitment
Learning
Employee contact center
HR information systems and reporting
Global mobility
Regulatory and compliance
Employee relations
Performance management
4Copyright © 2014, Everest Global, Inc.
EGR-2014-3-E-1232
IBM-Kenexa consolidated its position as a Leader on
the Everest Group PEAK Matrix for RPO
1 Refer to page 13 for more details on RPO Star Performer methodology
2 Service providers scored using Everest Group’s proprietary scoring methodology given on page 11
Source: Everest Group (2014)
Leader
Major Contender
Emerging Player
Star Performer
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for RPO
Ma
rke
t su
ccess
RPO delivery capability1
(Scale, scope, technology, delivery footprint, and buyer satisfaction)
25th percentile
75th percentile
High
75
thp
erc
en
tile
Allegis Global Solutions
ManpowerGroup
AMS
IBM-KenexaCielo
PeopleScout
Randstad Sourceright
The RightThing
Pontoon
Hays
KellyOCG
AON Hewitt
Futurestep
Accenture
Hudson RPOWilsonHCG
Resource SolutionsSeven Step RPO
Advantage xPO
Yoh
NeeyamoPeoplestrong
High
Low
Low
25
thp
erc
en
tile
Major Contenders
Emerging Players
Leaders
5Copyright © 2014, Everest Global, Inc.
EGR-2014-3-E-1232
Other capabilities Offered Description Other capabilities Offered Description
Analytics Yes Smarter Workforce measures employee engagement,
talent management, and leadership development
Assessment Yes Proprietary assessments on capacity, capability, and
cultural fit
Employer
branding
Yes IBM Kenexa Employment Branding that includes both
Organizational Cultural Insight Survey and
Recruitment Marketing
Mobile-based
solutions
Yes Technology solutions – BrassRing and various
recruitment portals
Talent
Community
N/A N/A Proprietary add-
on tools
Yes Onboarding, organizational culture, performance
management, engagement survey, and leadership
IBM-Kenexa (page 1 of 4)
RPO service capability and strategy
Company profile: IBM-Kenexa has been a business solutions provider in the field of
human resource management for 25 years. IBM-Kenexa delivers software solutions,
business processes, and expert consulting that helps organizations impact business
outcomes through HR. It offers a comprehensive suite of unified products and services
that support the entire employee life cycle from pre-hire to exit. The Smarter Workforce
solution measures employee engagement, talent management, and leadership
development
Headquarter: Wayne, Pennsylvania, United States
Leadership: Phil Stewart, President
Website: http://ibm.co/1qRuYtC
Partnership
RPO service provider: None
HRO service provider: None
Current RPO market segment focus
Buyer segment: Targets both the mid-market (3,000 to 15,000 employees), as well as
the large market segment (>15,000 employees)
Geography: North America, Central and South America, EMEA, and Asia Pacific
Recent RPO-related developments/announcements
January 2014: Announced the Software-as-Service (SaaS)-based IBM Kenexa Talent
Suite
Offshore1 Nearshore1 Onshore
Not Available (N/A) N/A N/A
Total RPO delivery FTEs = N/A
Functional capabilities within key RPO areas across regions
Regions
North
America EMEA
Asia
Pacific
South
America
Employer branding
Sourcing
Screening
Applicant tracking
Interview scheduling and
co-ordination
Assessment
Offer letter management
Background checking
Onboarding
Vendor management
Coverage – self Through partners Not offered
1 FTEs in offshore (e.g. India) or nearshore (e.g. Eastern Europe and Latin America) locations, and delivering services to North America or Western Europe
Source: Everest Group (2014)
6Copyright © 2014, Everest Global, Inc.
EGR-2014-3-E-1232
IBM-Kenexa (page 2 of 4)
RPO client portfolio
RPO split of hires by job family
RPO experience
Total number of current RPO clients: 54
Total number of annual hires managed: 65,000
RPO split of hires by type
Frequency of inclusion of geographies in RPO deals
RPO split of clients by industry RPO buyer-size mix
Major RPO clients
N/A
80%
40%
20%
28%
North America
EMEA
Asia Pacific
Central and South America
20%
20%
20%
15%
5%5%
15%
100% = 65,000 hires
100% = 54 clients
BFSI
Energy
and
utilities
ManufacturingOthers
100% = 54 clients
35%
65%
100% = 54 clients
3,000-15,000
employees
>15,000
employees
Permanent
Healthcare
/Pharma
Hi-tech and telecom
100%
100% = 65,000 hires
25%
15%
15%
15%
14%
11%5%
Blue
collar1
Technology
professionals2
Sales &
marketing
Finance & legal professionals3
Senior
management
Call-center
professionalsHealthcare
professionals
Government / public sector
1 Blue collar includes jobs in operations, production, mining, construction, maintenance, technical installation, facilities, janitorial, security, etc.
2 Technology professionals category includes engineers, IT professionals, researchers, and scientists
3 Finance & legal professionals include accounting, finance, and legal professionals
Source: Everest Group (2014)
7Copyright © 2014, Everest Global, Inc.
EGR-2014-3-E-1232
IBM-Kenexa (page 3 of 4)
Key RPO delivery locations
Source: Everest Group (2014)
Toronto
Hong Kong
Suzhou
MunichParis
London
Vizag
Tokyo
Cyberjaya
AmsterdamKrakow
Singapore
Wayne
RaleighFrisco
Manila
Buenos Aires
Dubai
Melbourne Auckland
Boston
San Jose
Hortlandia
Budapest
DalianLincoln
8Copyright © 2014, Everest Global, Inc.
EGR-2014-3-E-1232
IBM-Kenexa (page 4 of 4)
Detailed assessment of RPO capabilities
Overall remarks
IBM-Kenexa is a Leader on RPO PEAK Matrix with significant scale, high
technology capability, and wide delivery footprint
With the integration of IBM-Kenexa under way, clients are cautiously optimistic of
potential future gains
It is one of the very few providers that can offer technology-integrated and truly
end-to-end recruitment services including the value-added components (such as
analytics, branding, and assessment) along with broader talent management
services. It has also added these capabilities into a broad talent management suite
It is also one of the few providers with large multi-country RPO capabilities and
delivery experience in a single provider model
Buyers cite its sourcing capabilities, collaboration, and global delivery capabilities
as its key strengths. However, the lack of proactive-ness in servicing new
initiatives is a gap cited by buyers
IBM-Kenexa is a Leader on Everest Group PEAK Matrix for RPO
1 Based on contractual and operational information as of October 2013
Source: Everest Group (2014)
High Low
RPO market share1
Market success assessment
Percentage share by number of
contracts
Percentage share by annual
number of hires
Assessment
dimension Rating Remarks
Scale High number of RPO FTEs employed; part of IBM, a
Fortune 50 company
Scope High industry and job family coverage; strong multi-country
RPO capabilities; however, lacks blended model experience
Technology
capability
Strong analytics capabilities; launched IBM Kenexa Talent
Suite recently
Delivery
footprint
Widespread delivery footprint with good usage of offshoring
Buyer
satisfaction
High buyer satisfaction rating based on strong score in
relationship management and implementation capabilities
Overall
5% 5%
2012 2013
6%5%
2012 2013
Delivery capability assessment
Ma
rke
t s
uc
ce
ss
RPO delivery capability
(Scale, scope, technology, delivery footprint, and buyer satisfaction)
25th percentile
75th percentile
High
75
thp
erc
en
tile
IBM-Kenexa
High
Low
Low
25
thp
erc
en
tile
Major Contenders
Emerging Players
Leaders
9Copyright © 2014, Everest Global, Inc.
EGR-2014-3-E-1232
Appendix
10Copyright © 2014, Everest Global, Inc.
EGR-2014-3-E-1232
1 Service providers scored using Everest Group’s proprietary scoring methodology given on page 11
2 Based on a combination of total number of RPO clients, revenue from RPO, and total number of hires managed per year
Source: Everest Group (2014)
Everest Group classifies the RPO service provider
landscape based on its PEAK Matrix
Performance | Experience | Ability | Knowledge (PEAK) Matrix
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for RPO
2nd or 3rd quartile performance
across market success and
capability
Top quartile performance
across market success and
capability
RPO delivery capability1
(Scale, scope, technology, buyer satisfaction, and delivery footprint)
25th percentile
25
thp
erc
en
tile
75th percentile
75
thp
erc
en
tile
High
Low
Low High
Leaders
Major Contenders
Emerging Players
Ma
rke
t s
uc
ce
ss
2
4th quartile performance
across market success and
capability
11Copyright © 2014, Everest Global, Inc.
EGR-2014-3-E-1232
Service providers are positioned on Everest Group
PEAK Matrix, based on evaluation of two key
dimensions
Measures the scope of
services provided through:
Process coverage
Geographic coverage
Industry and job-family
coverage
Blended RPO experience
Multi-country RPO
capability
Measures the capability
and investment in
recruitment technology
Measures the satisfaction
levels2 of buyers across:
Goal realization
Process delivery
Implementation
Relationship
management
Measures success achieved in
the market. Captured through a
combination of total number of
RPO clients, revenue from RPO,
and total number of hires
managed/ year
Measures ability to deliver services successfully.
Captured through five sub-dimensions:
Measures the scale of
operations through:
Overall company
revenue
FTEs employed
Scale Scope Technology capability Buyer satisfaction
Delivery capability
Ma
rke
t s
uc
ce
ss
Measures the delivery
footprint and the global
sourcing mix through:
Delivery footprint across
ten regions1
Offshoring capability
Delivery footprint
1 Ten regions are North America, Latin America, United Kingdom, Western Europe, Eastern Europe, Middle-East and Africa, Australia and New Zealand,
India, China, and rest of Asia-Pacific
2 Measured through responses from three referenced buyers for each service provider
Major Contenders
Leaders
Emerging Players
12Copyright © 2014, Everest Global, Inc.
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RPO STAR Performers
Mark
et
su
ccess
Capability
Methodology
Everest Group selects Market Star Performers based on the relative year-on-year movement of each
service provider, on the PEAK Matrix
Year 1
Year 0
Service
provider
In order to assess advancements on market
success, we evaluate the performance of
each of the service providers on PEAK
Matrix across a number of parameters
including:
Increase in number of RPO clients
Growth in revenue from RPO
Increase in number of hires managed
In order to assess advancements on
capability, we evaluate the performance of
each service provider on PEAK Matrix
across a number of parameters including:
Annual growth in scale
Increase in scope of services
Expansion of delivery footprint
Technology enhancements/investments
The top-quartile performers on each of the
identified 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 in both market success and
capability advancement
The “Star Performers” designation relates to year-on-year performance for a given service provider
and does not reflect the overall market leadership positions. Those identified as the Star Performers
may include “Leaders”, “Major Contenders”, or “Emerging Players”
Additionally, Everest Group confers the “Star Performers”
title to providers that demonstrate the strongest forward
movement over time on the PEAK Matrix
13Copyright © 2014, Everest Global, Inc.
EGR-2014-3-E-1232
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 “Emerging Player” on the PEAK Matrix, an unfavorable outcome?
No. PEAK Matrix highlights and positions only the best-in-class service providers in a particular functional/vertical
services area. 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 itself a favorable recognition
What other aspects of PEAK Matrix assessment are relevant to buyers and providers besides the “PEAK
Matrix position”?
PEAK Matrix position is only one aspect of Everest Group’s overall assessment. In addition to assigning a “Leader”,
“Major Contender” or “Emerging Player” 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 for 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 input to 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
14Copyright © 2014, Everest Global, Inc.
EGR-2014-3-E-1232
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 positioning rating in multiple ways including:
– Issue a press release declaring their positioning/rating
– Customized PEAK profile for circulation (with clients, prospects, etc.)
– Quotes from Everest Group analysts could be disseminated to the media
– Leverage PEAK 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
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With a fact-based approach driving outcomes, Everest Group counsels
organizations with complex challenges related to the use and delivery of the
next generation of global services
Through its practical consulting, original research, and industry resource
services, Everest Group helps clients maximize value from delivery strategies,
talent and sourcing models, technologies, and management approaches
Established in 1991, Everest Group serves users of global services, providers
of services, country organizations, and private equity firms in six continents
across all industry categories
