The Services Research Company™ - OneSource Virtual Services Research Company™ Khalda De Souza Principal Analyst, Services Strategies [email protected] HfS …

The Services Research Company™

Khalda De SouzaPrincipal Analyst, Services [email protected]

HfS Blueprint Report

Workday Services 2016Excerpt for OneSource VirtualSeptember 2016

Proprietary│Page1©2016HfSResearchLtd.ExcerptforOneSourceVirtual

TOPIC PAGE

ExecutiveSummary 2

Research Methodology 19

ServiceProviderGrid 24

ServiceProviderProfiles 28

MarketWrap-UpandRecommendations 31

WorkdayServicesintheAs-a-ServiceEconomy 41

About theAuthors 43

Table of Contents

Executive Summary

©2016HfSResearchLtd.ExcerptforOneSourceVirtual Proprietary│Page3

Introduction to the HfS Blueprint Report: Workday Services 2016

n The 2016 HfS Workday Services Blueprint Report is an update of the 2015 Workday ServicesBlueprint Report. However, as the Workday service provider landscape has significantlychanged over the past year, it is difficult to directly compare the two reports. There has beenconsolidation in the market and most providers have continued to aggressively invest incapabilities, providing new value propositions to clients. Moreover, HfS Research has updatedour Blueprint grid to include additional categories.

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 sixteen serviceproviders in detail and provides a mini profile of capabilities for ten more. These serviceproviders are the leaders in this market and the major partners for Workday in delivering thisplatform to enterprises today.


Workday: Applicationsn Workday posted Fiscal Year 2016 Total Revenue of $1.16 billion, representing an increase of 48%

from Fiscal 2015. Demand for both the HCM and FM applications is growing, from all sizes ofenterprise as well as from those headquartered outside of North America, notably Europe andAsia Pacific. HfS has defined the services set for this Blueprint as built around all of the modules inthe Workday Human Capital Management (HCM) and Financial Management (FM) suite. Theseinclude:

n Workday Human Capital Management (HCM): Core HCM, Compensation, Benefits, Talent,Recruiting, Payroll, Time and Absence, Learning, Workforce Planning and Analytics

n Workday Financial Management (FM): Accounting and Finance, Revenue Management,Management Reporting, Expenses, Procurement, Inventory, Projects and Grants

n Workday Payroll: This is available in the US, Canada, UK and France. Enterprises typicallylook to Workday payroll partners, mostly ADP, for international plug-ins and connectors.

n Workday Student, Workday Learning, and Workday Planning: These applications areexpected in general release in the second half of 2016. Several Higher Education institutionsare participating in Workday’s Design Partner, Strategic Influencer, and Strategic Advisorprograms. Some have also started to deploy Workday Student modules, including StudentRecruiting and Admissions, prior to general availability of the full Student suite in late 2016.

n Workday Insight Applications Management: Since Workday 26 release in March 2016, thesepre–packaged analytic applications are incorporated into the core HCM and FM applications.


Workday Selection

n WhyWorkday?:ClientswespoketointhisBlueprintselectedWorkdayforanumberofreasons.Someofthethingsclientshighlightedinclude:

• Itisanintegralpartofclient’scloudstrategy• Itisatrulyintegratedsetofend-to-endsolutions• Itisamodernandradicallydifferentapproachcomparedwiththecompetition• Itenablesfastdecisionmaking• Itincludesimportantreportingandanalyticscapabilities• ItprovidesHCMandFMcapabilities,inaplatformapproach• Thereislowcostofsupportcomparedtocompetition• Ithasgreatfunctionality• Itprovidesarichuserexperience• Itsintegrationcapabilitywithotherapplications

• StrongClientReferences:Workdayhasverystrongclientreferenceswhoarewillingtotalktoallprospectiveclients.NearlyallofthebuyerswespoketointhisBlueprintsaidthatthiswasastrongreasonwhytheyselectedWorkday.


Workday: Servicesn Workday’s Professional Services organization has two focus areas:

1. Deliver direct professional services to assist clients in deployments. This is typically tosupport new applications and/or where clients specifically request this.

2. Support service partners in the ecosystem to deliver successful deployments. Asservice partners in the ecosystem gain experience in deploying applications, Workdayprefers for them to lead deployment initiatives.

n Workday Office Hours: This is a direct offering from Workday which enables clients to make anappointment to talk to a product expert. To date, approximately 300 clients have signed up tothis real-time problem resolution and/or advice.

n Workday Community: The Workday Community is an online resource for all customers to askquestions, share experiences and even find partners. Workday service partners areencouraged to help Workday to answer questions on the site. A few of the partners, such asOneSource Virtual, also have their own user groups to facilitate customer engagement, but themajority of partners rely on customers accessing the Workday Community.


Workday: Services

n Workday Pro: Customers are able to achieve training and accreditation for internal staff throughthe Workday Pro program. This is a role-based customer training program that involves a writtentest and bi-annual update training. Customers interested in the program are encouraged tocomplete it prior to the deployment stage, so that staff can work more effectively with theimplementation partner.

n Workday Consulting Services Marketplace: Customers can submit a ‘Request for Service’ on thisonline resource and Workday or one of its partners can respond and provide the requiredservices. There are sometimes skills distribution issues in the Workday ecosystem and theConsulting Services Marketplace helps to address this.


Workday Services Ecosystemn Workday has 39 service partners. Workday has three categories of partners:

n Advisory Partners

n Deployment Partners

n Product Application Management Services Partners

n The majority of partners are Deployment Partners, who are responsible for Workdaydeployment projects. Several partners have capabilities and experience across the three mainservice area categories of advisory, deployment and management services, despite beinglisted as partners in only one of these areas. Workday’s goal is for partners to deliver 75% to80% of all projects. Workday provides partners with training support for all services partnersand also ensures that the ecosystem is prepared for the launch of all new products andinitiatives. For example, Workday is focusing on the following in the next year:

n Pre-Configured solution development: Workday is focusing on developing tenant pre-configured solutions, for clients and partners, to speed up design and deployment times.

n Healthcare, Education and Government sector focus: Workday is developing solutionsmore aligned to industry sectors, including Healthcare, Higher Education, Governmentand Professional Services. It will also work closely with service partners that have skills inspecific industries to build industry best practices and tools.

n Platform deployments: Workday will increasingly focus on platform deploymentmethodologies for unified HCM, Payroll, and Financial Management deployments.


Workday Services Ecosystem(2)n Workday Partner support: The Workday partner ecosystem has over 150 dedicated Workday

resources focused on marketing and business development activities. Workday provides toolsand methodologies to assist partners to deploy and support Workday applications. It alsomeets with each partner on a regular basis to discuss the latter’s Workday services strategyand growth plans. Workday also offers joint go-to-market opportunities with service partnersto help promote new business initiatives.

n Recommending partners to clients: Clients sometimes ask Workday for recommendations ofservice providers. In these situations, Workday typically suggests three to four partners thatmay meet the client’s requirements, but clients are free to select their partner, whether it ison this suggested list or not. Several clients we spoke to said that Workday had recommendedtheir service provider, based on its specific experience and alignment with the client’srequirements.

n Partner involvement in new product releases: Workday often works with a select fewpartners, called the Early Adopters, in the early stages of the launch of a new product ormethodology, to gain feedback on design and the product roadmap. The aim is to resolve allissues before the general availability of the application. For example, Workday is working witha few service partners for early feedback on the Workday Learning and Workday Planningapplications.


Workday Services: Quality ControlWorkdayinsistsonhavingvisibilityofallservicesengagementstobeabletobettercontrolthequalityofservicedeliveredandstayabreastofcustomerneeds.Workdayusescustomerfeedbacktomakeadjustmentsintheproductandalsotoprovideguidanceontheservicesthatshouldbeofferedbyecosystempartners.Itdrivesconsistencyandqualityinthefollowingways:

n Workday Accelerated Deployment Methodology and Lifecycle Deployment Program: Workdaystipulates that all partners follow the five stages of its Accelerated Deployment Methodology:Plan, Architect, Configure and Architect, Test, Deploy. All partners follow this common approach,ensuring the same high quality standard of deployments. Partners can build proprietary toolsand templates on top of this methodology to drive differentiation. For enterprises in NorthAmerica and Europe, with 650 to 3,500 employees, partners use the Lifecycle DeploymentProgram (LDP) approach, which enables these customers to get live more quickly and costefficiently.

n Delivery Assurance: All partner-led engagements require Delivery Assurance, through whichWorkday provides specialized consulting resources at each major stage of the project to ensurethat each step of the deployment methodology has been properly followed. In addition thisinvolvement allows Workday to be proactive in addressing any issues.


HfS Workday Service Definitions

PLAN

••BusinesscasedevelopmentforSaaSdeployment••Cloudadvisoryservices,includingcloudreadinessassessment••Compliance,riskmanagementandsecurityconsulting••HCM/Financestrategyconsulting••Workdaystrategyconsulting,processdesignandconfigurationsupport••Changemanagementconsulting••Governancestructure

IMPLEMENT

••Projectmanagement••Datamigration••Customdevelopmentservicestocomplywithindustry,geographyorotherbusinessrequirements••Integrationservices••Extensions,toolsorconfigurationstofillfunctionalgapsofWorkday••Testing••Initialusertraining••Changemanagementexecution

MANAGE

••Governancemanagement••Upgradesupport••Workdayhelpdesk••On-goingintegration••On-goingtesting••On-goingtraining••Workdayuptime,dataaccuracy,andaccessresponsibility••On-goingemployeeadoptionsupport•• Justintimeusabilitycontent••Periodicsolutionandservicedeliveryreviews••IdentifyanyrequiredchangesinWorkdayorprocesstoaccountforchangingbusinessrequirements,e.g.M&A,divestment,newinvestmentsinIT

OPERATE

••WorkdayBusinessprocessoutsourcing(BPO).E.g.HCMBPO,PayrollBPO,etc.

OPTIMIZE

••NewWorkdaymodulevalueidentificationandbenefitanalysis••On-goingWorkdaymoduleadds/upgrades,migrations,andconsolidation••On-goingHCM/Financestrategyandsystemalignment••HCM/Financeanalyticsandmeasurement••Bestpracticecontentcuration••Usercommunityfacilitation

Project ProjectProject Run Run

WORKDAYSERVICESVALUECHAIN


Workday Services Value Chain Market

Source:HfSResearch,September2016

8%

48% 16%

15%

13%

Plan

Implement

Manage

Operate

Optimize

ApproximatesplitofWorkdayServiceBusinessbyValueChainService*

*AggregateresponsesofserviceprovidersinthisBlueprint


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

implicationsofusingaSaaSsolution.ThisisacriticalphasetogetrightinordertoobtainthemaximumbusinessbenefitsfromaWorkdaydeployment.Weexpectconsultingopportunitiestocontinuetogrowsteadilyoverthenext12to18monthsdrivenbythedemandtounderstandhowtobestmanageaHRand/orFinancefunction,aswellasincreasingindustryandregionalregulatoryneeds.

n Implement:ThisisthebiggestpartoftheWorkdayservicemarkettoday.HCMimplementationremainsstrong,butinthepastyear,thedemandfortheFinancialManagement(FM)applicationhasalsoincreaseddramatically.DemandoutsideofNorthAmericahasalsopickedup,notablyinEuropeandAPAC.Weexpectimplementationservicestoremaininhighdemandoverthenextfewyearsastherearestillmanyopportunitiesforphase1andphase2deployments.

n Manage:ManyserviceprovidershaveinvestedindevelopingandstrengtheningWorkdaymanagementservicescapabilitiestomeetthesteadilygrowingdemandfromclients.Mostenterprisesstillassumetheycanmanagetheapplicationin-housewithlittletonooutsidesupport.However,severalenterprises,especiallythosewhoareinphase2deploymentsarerapidlyrealisingtheneedforadditionalsupport.Oneofthemaindriversformanagementservicesgrowthisthefactthatclientsarerealisingthatitcanbemoreefficienttooutsourcesomeofthenecessarytasksassociatedwithrunningtheirenterprisesystems.Weexpectmanagementservicestocontinuetogrowoverthenext12-18months.


Key Highlights: Workday Services Value Chain (2)n Operate:ServiceproviderswithgeneralHRBPOcapabilitieshaveinvestedinBPOservices,

typicallypayrollBPOandBPaaS overthepastyear.Thisremainsarelativelysmallbutgrowingmarket.

n Optimize:ServiceprovidershavedevelopedOptimizecapabilitiesoverthepastyeartomeettherapidlygrowingdemand.ServiceprovidersinthisBlueprintestimatedtheserevenues,butoftenOptimizeservicesformpartofaserviceprovider’sconsultingormanagementservicesbusiness.WeexpecttheseservicestocontinuetobeimportantinallSaaSserviceareas,includingWorkday.


Key Highlights: Workday Services Market Growthn ConsolidationintheWorkdayServicesmarket:Sincethe2015WorkdayServicesBlueprint

reporttherehasbeensomeconsolidationintheservicesecosystem.Notably:• AonHewittacquiredUK-basedKloud• KPMGacquiredTowersWatsonHRServiceDeliveryPractice• IBMacquiredMeteorix• MerceracquiredCPSG

n GrowthinWorkdayservicespracticeandnumberofcertifiedconsultants:Allserviceprovidersincludedinthe2015and2016WorkdayServicesBlueprintsexperiencedgrowth.Takingouttheeffectsoftheacquisitions,HfSestimatesthat,fortheserviceprovidersincludedinthisBlueprint:

• Thenumberofpeopleinserviceproviders’Workdayservicespracticeteamsincreasedby64%from2015to2016

• Thenumberofcertifiedengineersincreasedby45%from2015to2016.ServiceproviderparticipantsofthisBlueprinthaveatotalofnearly5,000Workdaycertifiedconsultants.


Key Highlights: Workday Services Market Trendsn HCMCore,BenefitsandPayrolltop3modulestoday:Serviceprovidersestimatethe3most

popularmodulestodaytobeWorkdayHCMCore,BenefitsandPayroll.Theseareamixofphase1andphase2deployments.

n FM,RecruitingandHCMCoretop3modulesinnext6to12months:ServiceprovidersintheBlueprintestimatethe3mostpopularmodulesinthenext6to12monthswillbeFM,RecruitingandHCMCore.

n JointWorkdayHCMandFMdeploymentsdemand:ServiceprovidersinthisBlueprintestimatedthattheyhadworkedonmorethan5,400projectsorongoingengagementsintotal.Approximately69%ofthesearefocusedonWorkdayHCM,4%ontheFMapplicationalone,andapproximately27%includebothHCMandFMapplications.

n Serviceproviderrevenuegrowthof46%:ServiceprovidersinthisBlueprintexpecttheirWorkdayservicesbusinesstogrowatanaverageof46%inthenextyear.

n Manufacturing,FinancialServices(BankingandCapitalMarkets),Retail,andTechnologysectorsleaddeployments:HfSestimatesManufacturing,FinancialServices(BankingandCapitalMarkets),Retail,andTechnologytobetheleadingsectorsdeployingWorkdaytoday.Mostserviceprovidersareonlyjuststartingtotargetspecificindustrieswithsolutionsandservices.Workdayitselfisalsoseeingsubstantialgrowthinspecificindustrysectorsolutionstobettersupportclientbusinessneedsgoingforward.


Key Highlights: Workday Services Market Trends (2)n ContinueddemandforWorkdayHCMandFM:Enterprisesareincreasinglyconsidering

WorkdaysolutionstomanagetheirHRandFinancefunctions.WhileHCMremainstheleadingsolution,interestinFMhassignificantlygrowninthepastyear.Thereisamixofdeploymentbehavior,including:

• Enterprisesdeployingafewmodulesatatime,acrosstargetsitesatatime• EnterprisesdeployingalmostthefullsuiteoftheHCMmodulestoallmajorsitesatonce• EnterprisesdeployingHCMfirstandthenconsideringFM• EnterprisesdeployingFMfirst• EnterprisesdeployingHCMandFMatthesametime

n WorkdayPayrollandWorkdayStudentGrowth:ServiceprovidersarealsoseeingcontinuedgrowthintheWorkdayPayroll,andWorkdayStudentmodules.Fewerpartnershavethesecapabilitiesandsoaredifferentiatorsinthismarket.

n AnalyticsFocus:EnterprisesarestartingtoseethevalueofinsightintotheirHRandfinanceoperationstoenablethemtomakebetterdecisions.OneFinanceManagertoldusthattheriskofusingthecloudforproprietaryinformationwasnotasbigastheriskofnothavingtherightdatainstantlytomakefastdecisionsthatimpactthebusiness.

n GrowthoutsideofNorthAmerica:ThedemandforWorkdayisincreasingoutsideofNorthAmerica,notablyinEuropeandevenintheAsiaPacificregion.WorkdayandmostoftheservicespartnersinthisBlueprinthaveindicatedastrategytotargetEuropeinparticularinthenextyear.Themainchallengetothisgrowthisbeingabletoattractandretaingoodtalent.


Key Highlights: Workday Services Market Trends (3)n Globaldesignwithremotelocaldeployments:MostWorkdaydeploymentsaremanagedfrom

theclient’scentralheadquartersite,withremotedeploymenttoothersites,includingcountries.Forthemostpart,thisworksfine.Sometimesconsultantsneedtospendsometimeatlocalsitestotailorandtestsolutionsforthelocalmarkets.ClientshavealsocontractedconsultantsfromlocalserviceproviderssuchaseverBe,whohaveworkedalongsidetheprimecontractortodeliverthesolution.

n Fastdeploymentfocus:Enterprisesarefocusedonfastdeployments,whichcancompromisethequalityandtimespentonupfrontdesignandconsultingservices.Theyoftenrealisetheimportanceofthisatalaterstageandweexpectconsultingservicestocontinuetogrowinimportanceinthismarket.

n Managementservicesgrowth:Workdaymanagementservicesisagrowthmarket.Enterprisesthatareinphase2deploymentsarestartingtorealizetheimportanceofhavingaccesstoongoing,flexiblemanagementservices.Mostenterprises,however,stillbelievethattheycanmanagethesolutionin-house.MostoftheserviceprovidersinthisBlueprinthaveidentifiedmanagementservicesasanimportantgrowthareaandhaveinvestedindevelopingandstrengtheningtheircapabilitiesinthisspacetopreparefortheincreaseindemandinthenextfewyears.

n TalentShortage:TherecontinuestobeatalentshortageintheWorkdayservicesmarket.InEuropeandAPACinparticular,manyserviceprovidersarestrugglingtofindgood,localtalent.Thebattletoattractandretainthebestpeoplewilllikelycontinuefortheserviceprovidersforsometime.Serviceprovidershaveinvestedintalentacquisitionandretentionprogramstomeetthischallenge.

Research Methodology


Research MethodologyDataSummaryn ThedataforthisBlueprintwerecollectedinQ2andQ3

2016,coveringservicebuyers,serviceproviders,andadvisors/influencersofWorkdayservices.

n HfSselectedamixofglobalsystemintegratorsandspecialistproviderstoincludeinthisBlueprint.

n ThemaindifferencesfromthepartnersincludedintheWorkdayServicesBlueprint2015arethatthisyear:

n Ataraxis isnotincludedinthemainsectionn DayNine isincludedinthemainsectionn PWCisincludedinthemainsection

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 40%QualityofAccountManagementTeam 20%HowServiceProvidersEngageClientsandDevelopCommunitiesAroundWorkday 10%

HowServiceProvidersIncorporateClientFeedback 10%

Real-WorldDelivery Solutions 50.24%ActualDeliveryofServices forEachSub-Process 25%

Plan 5%Implement 5%Manage 5%Operate 5%Optimize 5%

ScaleofDesign, Implementation,andManagementCapabilities 5%UsefulnessofServicestoSpecificClientNeedsofAll Sizes 20%

FlexibilitytoDeliverEnd-to-End SolutionsandPointSolutions 10%HowistheServiceProviderbecomingaBrokerofCapabilityfortheClient 10%

TalentDevelopment/AbilitytoAttractandRetainKeyWorkdaySkills 10%

INNOVATION 100%Vision forValueDelivery 50%

InnovationinCommercialModelstohelpClientsWriteOffLegacy 10%UsingDesignThinkingToEnabletheChangeManagementofWorkdayClients 5%

VisionforWorkday’EffectivenessinClients 35%AbilitytoLeverageValueDrivers 50%

IntegrationofPartnerCapabilitiesintoWorkday’Solutions 10%InvestmentinProprietaryTools,Accelerators,andSolutions 15%

CapabilitiesforProvidingAccessible&ActionableDatatoCustomers 15%

StrategyforthedeploymentofIntelligentAutomation 10%

TOTAL 100.00%


Blueprint Scoring Definitions: ExecutionEXECUTION Howwelldoestheproviderexecuteitscontractualagreement,andhowwelldoestheprovider

managetheclient/providerrelationship?

QualityofCustomerRelationships Howengagedareprovidersinmanagingtheclientrelationshipbasedonthefollowingmetrics:QualityofAccountManagement,serviceprovider/clientengagement,andincorporationoffeedback?

QualityofAccountManagementTeam Whatisthequalitylevelofprofessionalskillsintheaccountmanagementteam?

HowServiceProvidersEngageClientsandDevelopCommunitiesAround Workday

HowwelldoestheserviceproviderengageclientsanddevelopclientcommunitiesaroundWorkday?

HowServiceProvidersIncorporateClientFeedback

Howhaveserviceproviderstakenfeedbackandincorporatedthatfeedbackintotheirservices?

Real-WorldDeliverySolutions Doesthesolutionprovidedcomparefavorablytotheserviceagreeduponwhentakingintoaccountthedeliveryofservicesforeachsub-processandgeographicfootprintandscale?

ActualDeliveryofServicesforEachSub-Process

Takingintoaccounteachsub-processandtheentiremacroprocess,doeseachsub-processadd up tothesuccessfuldeliveryoftheservicebeingprovided?

Scale ofPlanning,Implementation,andManagementCapabilities

DoestheserviceproviderhavescaleinPlanning,Implementation, andManagementCapabilitiesregardingWorkday,includingtheavailabilityofcertificationsatalllevels?

UsefulnessofServicestoSpecificClientNeedsofAllSizes

Howflexibleandexperiencedareproviderswhentailoringsolutionsbasedonclientsize,location,andtypeofsolution(endtoendandsinglepoint)?

FlexibilitytoDeliverEnd-to-EndSolutionsandSingle-PointSolutions

Howflexibleareproviderswithdeliveringmulti-processend-to-endsolutionsversussingle-pointsolutions?

HowistheServiceProviderbecomingaBrokerofCapabilityfortheClient

Howwelltheserviceproviderisabletosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps.

TalentDevelopment Theserviceprovider’sabilitytoattractandretainkeyWorkdayskills


Blueprint Scoring Definitions: Innovation

INNOVATION Innovationisthecombinationofimprovingbothservicesandbusinessoutcomes.

VisionforValueDelivery Thestrategyforthedeliveryofservicestoeachpartofthevaluechain ofprocesses.

InnovationinCommercialModelstohelpClientsWriteOffLegacy

Offeringflexiblesolutionstoassistclientstomovetothecloud.

UsingDesignThinkingToEnabletheChangeManagementofWorkdayClients

Understandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds.

VisionforWorkday’ EffectivenessinClients What isthevisionoftheserviceproviderfortheevolutionofitsWorkdayservicesoffering, andhowwillitcontributeovertimetoclienteffectiveness andvaluecreation?

AbilitytoLeverageValueDrivers Howwellhaveprovidersintegratedvaluedriversintotheirservices?Examplesincludethird-partysolutions,internalinvestments,andmore.

IntegrationofPartner CapabilitiesintoWorkdaySolutions

Howwelldoestheproviderleveragenewtechnologies/enhancements,mobilityfunctionality,andcloudcapabilitiesintoitssolutions?

InvestmentinProprietaryTools,Accelerators,andSolutions

Whatistheproviderdoingto investinproprietarycapabilities,tools,accelerators,andothersolutionstoenhancethevalueofWorkdayforclients?

CapabilitiesforProvidingAccessible&ActionableDatatoCustomers

Applyinganalyticstechnologies,processesandresourcesontorelevantdatasetstoderiveinsightsthatcanhelpimproveanenterprise

StrategyforthedeploymentofIntelligentAutomation

Usingofautomationandcognitivecomputingtoblendanalytics,talent,andtechnology.

Service Provider Grid


TodistinguishserviceprovidersthatshowcompetitivedifferentiationinaparticularlineofdeliverywithprogressinrealizingtheAs-a-ServiceEconomyofbusinessoutcome-oriented,on-demand,talent+technologyservices,HfSawardstheseproviderstheAs-a-ServiceWinner'sCircledesignation.

Guide to the Blueprint Grid

EXECUTION INNOVATION

As-a-ServiceWinner's CircleshowsexcellencerecognizedbyclientsintheEightIdealsinbothexecutionandinnovation

Collaborativerelationshipswithclients,servicesexecutedwithacombinationoftalentandtechnology asappropriate,andflexiblearrangements

Articulatesvisionanda“newwayofthinking,”hasrecognizableinvestmentsinfuturecapabilitiesandstrongclientfeedback,and isdrivingnewinsights andmodels

HighPerformersdemonstratestrongcapabilitiesyetlackaninnovativevisionormomentuminexecutionagainstthevision

Executesomeofthefollowingareaswithexcellence:worthwhilerelationshipswithclients,servicesexecutedwith“greenlights,”andflexibilitywhenmeetingclients’needs

Typically, describeavisionandplanstoinvestinfuturecapabilitiesandpartnershipsforAs-a-Serviceandillustratean abilitytoleveragedigitaltechnologiesand/ordevelop newinsightswithclients.

High Potentialsdemonstratevisionandstrategybuthaveyettogainmomentumintheexecutionofit

Earlyresultsandproof pointsfromexamplesinnewserviceareasorinnovativeservicemodels,yetlackscale,broadimpact,andmomentuminthecapabilityunderreview.

Well-plotted strategyandthoughtleadership,showcaseduseofnewertechnologiesand/orroadmap,andtalentdevelopmentplans

ExecutionPowerhousesdemonstratesolid,reliableexecution,buthaveyettoshowsignificantinnovationorvision

Evidence ofoperationalexcellence;however,stillmoreofadirectiveengagementbetweenaserviceprovideranditsclients.

Lack ofevidentvisionandinvestmentinfuture-orientedcapability,suchasskillsdevelopment,“intelligentoperations,”ordigitaltechnologies.


HfS Blueprint Grid: Workday Services 2016

Accenture

AonHewittAppirioCollaborativeSolutions

DayNine

Deloitte

everBe

HexawareTechnologies

HPE

IBMKPMG

MercerNGAHumanResources

PWC

Sierra-Cedar

000000000000000

OneSourceVirtual


Major Service Provider Dynamics: Highlights

EXECUTION

• AccountManagement:Strongaccountmanagementthatcreatesapartnershipwithclientsisacriticalcapabilitytoensureclientsatisfaction.ManyoftheserviceprovidersintheBlueprinthavegoodaccountmanagementskills,butclientswereparticularlycomplimentaryaboutCollaborativeSolutions,DayNine,NGAHumanResources(NGAHR),AonHewitt,Appirio andPWC.DayNine clientsappreciateditsabilitytoprovideproactiveguidanceandbestpracticeadvice.

• ScaleofDesign,Implementation,andManagementCapabilities:Workday’serviceclientsareincreasinglylookingforserviceproviderswhohavecapabilitiesoutsideofNorthAmerica,particularlyinEuropeandAPAC.ServiceproviderswiththatstoodoutfortheirinternationalreachincludeAccenture,DayNine,Deloitte,IBM,KPMG,MercerandPWC.

• TalentDevelopment:AllWorkdayservicespartnersfaceatalentshortagechallenge,especiallyoutsideofNorthAmerica.ThepartnersthatstoodoutinthisBlueprintforinvestinginpeopleandskillsincludeAccenture,AonHewitt,CollaborativeSolutions,DayNine,IBMandeverBe.

INNOVATION

• VisionforWorkdayEffectiveness:HavingavisionforwheretheprocessessupportedbyWorkdayareheadedinthefutureisanimportantelementofinnovation.Inparticularbeingabletoguideclientsontheircloudjourneys,whilelinkingresultstobusinessfocusedoutcomesisparticularlyvaluable.WesawthisvisioncomeoutparticularlyclearlyinAccenture,AonHewitt,Appirio,CollaborativeSolutions,DayNine,Deloitte,IBM,PWCandMercer.

• InvestmentinTools:DevelopingtoolsthatfacilitateandenhanceWorkdaydeploymentswillcontinuetobedifferentiatorsforserviceprovidersinthismarket.WewereparticularlyimpressedwiththeinvestmentsmadebyAccenture,DayNine,Deloitte,KPMG,OneSourceVirtual,PWC,MercerandHexaware.Inaddition,providersthatstoodoutfortheirabilitytoleveragevaluedriversfromacrosstheircompany,likeanalyticsandmobile,includeAccenture,Deloitte,IBMandPWC.

Service Provider Profile


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

serviceproviderpartiallyoffersthisservicetodayoritisingrowthstage.Awhiteboxwithblackletteringindicatesthattheserviceproviderdoesnotofferthisservicetoday.

Key

Plan

Implement

Manage

Operate

Optimize

FullyOffered Today

PartiallyOfferedToday/InDevelopment/GrowthArea

NotOffered Today

FullValueChainOffered

n Allprofilesincludesomefactsandstatisticsabouteachserviceprovider’sWorkdayservicespractice.

n Thelistofpartnershipsisnotcomprehensive,assomeserviceprovidershavemanypartnershiparrangements.TheprofilesprovidesomeexamplesofthekeypartnersforWorkdayservices.

n Thenumberofclientsandengagementsareguidelinesforbuyers,asserviceprovidersmaycountthesedifferently.Forexample,somearemorestrictaboutonlycountingclientnumbersratherthanseparatingouteach,individualengagementwitheachclient.


OneSource Virtual

Relevant Acquisitions/Partnerships KeyClients Operations TechnologyTools andPlatforms

Partnershipsinclude:• CloudPay• FirstPeopleGlobal(UK)• KnowledgeSource andAttain• Mercer/CPSG• NavigatorManagementPartners• PWCandAccenture

OneSourceVirtualtargetsenterprisesofallsizesintheUS,UKandEMEA.ItplanstoexpandtoAPACin2017.

GeographicCoverage:PredominantlyNorthAmerica,followedbytheUK.PlanstoincreasebusinessinContinentalEuropeandMiddleEastandAfrica.

IndustryCoverage:Top3industriesinrevenuesareTechnology,Manufacturing,andFinancialService(BankingandCapitalMarkets)

Somepubliclydisclosedclientsinclude:• BassProShops• ChiquitaBrandsInternational

• PartnerSince:2008• NumberofEmployeesinWorkdayServices

Practice: 609• NumberofCertifiedWorkdayConsultants:308• AverageNumberofCertificationsPer

Consultant:3.63• TotalNumberofClients:441• TotalNumberofProjects/Ongoing

Engagements:197contractAMScustomersand1705ongoingengagements

KeydeliverylocationsforWorkdaypractice:• US::Dallas(Texas):Headquarters;Mesa

(Arizona)• UK:Derry(NorthernIreland)

• Atmosphere:proprietaryplatformbuiltonForce.comtoautomateactivitiesaroundmultipleWorkdaytenantsandAPIs.

• Inspect:proprietaryautomatedtestingtool.• Insight:proprietarycustomerprojectand

consultantmanagementtool• OSVhasmaderecentinvestmentsinIPtofill

intentionalfunctionalgapsthatallowforin-applicationpayrolltax.

Strengths Challenges

• BreadthandDepthofCapabilities:OneSourceVirtualisaBPaaS provider. IthasservicecapabilitiessupportingtheWorkdayHCMandFMapplications,andsupportsthecompleteWorkdaylifecyclewithconsulting,professionalservicesandoutsourcingsolutions.Ithasamongthehighestnumberofcertificationsperconsultantintheecosystem.Anearlypartner,since2008,OneSourceVirtualisalsoafullWorkdayplatformuser,lendingitincreasedcredibilitytodeploythesolutionforclients.OneSourceVirtualalsoformsvaluablepartnershipstobringadditionalvaluableservicestoclients,suchaswithPWCforfinancialservicesexpertise,CloudPayforglobalpayrollcapabilities,andHexawareforaccesstooffshoreresources.

• CustomerRelationshipFocus:ClientshighlightOneSourceVirtual’scommitmenttofosteringclosecustomerrelationshipsandpromotingastrongcultureofteamwork.ClientsalsoappreciateOneSourceVirtual’sflexibilityinservicedeliverythroughoutengagements.

• WorkdayFocus:OneSourceVirtual’s100%dedicationtotheWorkdayapplicationsisseenasastrengthandcompellingselectioncriterionforprospectclients.

• InvestmentinToolsandTechnologies:OneSourceVirtualhasinvestedinanimpressivenumberoftoolsandtechnologiestofacilitateWorkdaydeploymentsforclients.TheseincludemigrationtoolsandataxprocessingplatformfortheUSandCanada.Itsproprietarytechnology,Atmosphere,providesWorkdaycustomerswithreal-time,in-applicationservicedelivery.

• EuropeGrowth:ThevastmajorityofOneSourceVirtual’sWorkdayservicesisderivedfromNorthAmericaheadquarteredenterprises,followedbytheUK.Buyersinotherregionsmaynotbeasawareoftheprovider’scapabilities.OneSourceVirtualplanstoexpandbusinessacrossContinentalEurope,MiddleEastandAfrica,andAPACincludingstrengtheningitsnearshorecapabilitiestobetterservetheseregions.

• LargeEnterpriseBusiness:OneSourceVirtualisacredibleproviderformid-marketenterprises.Theserviceproviderhasplanstomaintainandincreaseintothelargeenterprisemarket,butitmayhavetotweakitsservicesofferingstomeetthedifferentdemandsofthismarket.

Winner’s CircleWorkdayServiceSpecialistwithanInnovativeBPaaSOfferingandStrengthinCollaborativeEngagements

BlueprintLeadingHighlights

• QualityofAccountManagementTeam

• IncorporateClientFeedback• FlexibilitytoDeliverBoth

End-to-EndSolutionsandPointSolutions

• InvestmentinTools

PLAN

IMPLEMENT

MANAGE

OPERATE

OPTIMIZE

Market Wrap-Up and Recommendations


Service Provider Selection

n Whythisserviceprovider?Thetopreasonsclientswespoketoselectedtheirserviceproviderwere:• Historicalrelationship• Culturalalignment• Serviceproviderleadershipengagement• Technicalexpertise,specificallyinchangemanagement• Payrollservicescapabilities• Strongprojectleadsandaccountmanagementteams• Theopportunitytointerviewprojectteamsduringselection• GeographicalcapabilitiesoutsideofNorthAmerica• Workdayrecommendation• CommitmenttodeliveringandsupportingWorkday.Twoclientshighlightedthedifference

betweenaserviceprovider‘offeringWorkday’and‘livingWorkday.’


Service Provider Satisfaction and Challengesn Satisfaction:Thetopstrengthsclientslistedfortheirserviceproviderincluded:

• Solidexperience• TechnicalSkills• 100%focusonWorkday• Flexibility• Strongapproachandmethodology• Strongaccountmanagementteam• Collaborativeapproach,listeningtotheclient’sneedsandambition• Leveragingalltheskillsoftheprovider,includingoutsideoftheWorkdayservicespractice• Consistencyofprojectteam• Projectmanagementtools• Responsiveness• Postproductionsupportcapabilities

n Challenges:Thetopchallengesclientslistedfortheirserviceproviderincluded:• ScarceresourcestodeployandsupportWorkdayFM• Scarceresourcesinparticulargeographies• TheinabilitytoprovideaholisticviewacrosstheHRand/orFinanceprocess,andacross

thetwotogether.Consultantswereoftentoospecificmodulefocused• Theneedtochallengetheclient.Manyserviceproviderswereabletoimplementclient

requirements,butoftentheclientswouldhavevaluedmorepush-backandbeencouragedtoconsideranalternativeapproach.

• Differentcountrystatutoryregulationsknowledge• Documentationstandardization


Recommendations: Enterprise Buyersn Stay abreast of ecosystem changes: Buyers need to stay in touch with Workday and

generally do research on the latest capabilities of Workday service partners. Just thispast year there has been a lot of consolidation, and all partners have invested in newcapabilities to demonstrate commitment and differentiation in this market. Buyersshould enter RFP processes with an open mind, as many clients we spoke to admittedthat they were surprised at the outcome, and some selected a provider they had notheard of before.

n Check real experience: Buyers should check the real experience of the service providerdelivery team. The number of certified consultants is a good indication of the serviceprovider’s commitment to supporting Workday projects, but the onus is on the buyer tocheck the true experience of the team proposed for their project. We spoke to clientswho appreciated the ability to review CVs of each team member before selecting theservice provider.

n Make sure all locations are adequately supported: Buyers should check the availabilityof service provider resources in all the geographical locations required. It could be thata project managed from the buyer’s headquartered site, with some ad hoc deploymentof consultants to local sites is sufficient. But if more local assistance is required, buyersneed to make sure that the service providers have the relevant skills in the relevantlocation. Alternatively, buyers should contract locally based consultants for in-depthknowledge on local specifics, such as time management requirements in differentEuropean countries.


Recommendations: Enterprise Buyers (2)n Push service providers to share best practice: Buyers should challenge their service

provider account management and project management teams to share best practicesbased on their experience with other clients. A pure technical implementation is not asvaluable as acquiring a deep understanding of how to better run HR and/or financeprocesses.

n Make the effort to connect with peers: Buyers should also attend conferences andforums, to connect with peer enterprises to gain valuable insight into project experienceand best practice learnings. The Workday Rising conference is a good setting for this andsome service providers facilitate client conversations here.

n Clarify requirements upfront: Buyers should clarify exactly which services they requirefrom the service provider upfront. Some buyers we spoke to complained of a lack of alengthy strategic session with the service provider, and yet admitted that they were100% focused on achieving a fast Workday deployment.

n Start with the Workday journey conversation: Buyers should take the time tounderstand what is involved in a Workday deployment, and the product and servicesroadmap. This way they are prepared for what they are embarking upon, as well asknowing which additional products and services are available to them in the future. Inaddition, if buyers required additional services, for example an additional moduledeployment, or management services, they would be aware if their initial serviceprovider had this capability. This could save time and effort on running unnecessary RFPprocesses, depending on the capability and satisfaction with this service provider.


Recommendations: Enterprise Buyers (3)n Consider consulting and management services: To get real business value from a

Workday deployment, it needs to be tightly aligned to the client’s HR and/or financestrategy and it needs to continue to have this alignment post deployment. Buyersshould explore service providers’ consulting and ongoing management servicesofferings that support client business outcomes. In particular, several service providershave invested in developing and strengthening ongoing support services offerings toprovide continued support in a flexible manner. In other words, clients have the optionto have any level of support, from calling a help desk to having a consultant on-site for afew days to assist with a particular problem.


Recommendations: Service Providersn Demonstrate commitment: Despite the Workday services ecosystem being a closed

market, by invitation from Workday only, it is still a very competitive market. Manyclients told us that they prefer to work with a specialist provider that is 100% focusedon Workday. Other providers need to demonstrate that they Workday servicespractice is committed to investing in Workday services skills to remain competitive

n Work within the client ecosystem: Integrating Workday with other solutions is one ofthe most important and challenging skills to master in engagements. This oftenrequires service providers to work with other suppliers, for example the client’spayroll provider, to ensure a smooth integration of Workday enterprise-wide. Clientsappreciate service providers who are able to work well with other providers.

n Be forward thinking: Implementation consultants who understand the implications ofmanaging the applications they are configuring and management services consultantswho understand how the application was deployed can bring maximum value to aclient. Service providers should operate rotation programs for consultants to work inimplementation, management and even sales positions to be able to provide morevaluable advice to clients. In addition, service providers who know that the client willdeploy the Student or Payroll application next year for example, should prepare forthis, technically and in terms of resources, in present deployments


Recommendations: Service Providers (2)n Share innovation: Service providers should help clients to understand how Workday fits

into their broader HR and/or finance and overall cloud strategy. Conversations shouldtherefore not solely focus on technical implementations. Service providers who canbring expertise in predictive analytics, mobile, security and other related areas add realvalue to the client experience.

n Market capabilities: Service providers need to raise awareness of their capabilities toremain competitive as the Workday services market grows. Buyers are not always awareof individual Workday service partner capabilities and focus. In this past year all serviceproviders have enhanced their offerings. They should communicate this to existingclients to increase the chance of continued business and with prospective clients andWorkday to ensure being considered for all relevant RFPs in the future.

n Hire local talent in Europe and APAC: As service providers expand their Workdayservices to Europe, and to a lesser extent to the APAC region, they should invest inhiring local talent. While most Workday deployments are executed from a central, oftenclient headquarter site with remote deployments to all other sites, local resources arestill very relevant. They may need to tweak certain aspects of the solution, and anunderstanding of specific country HR laws across Europe, for example, would be astrong differentiator for service providers in this region. Low cost centers located inoffshore or nearshore locations continue to offer valuable skills, includingconfigurations, integrations and support services. However, upfront consultingengagements as well as some support services may require onsite assistance.


Recommendations: Service Providers (3)n Invest in industry approach and solutions: Service providers should invest in developing

industry specific capabilities to achieve differentiation in the Workday services market.While HR is still considered to be largely a horizontal market, service provider industryexpertise is more important for some finance managers. Going forward, serviceproviders will need to strengthen their industry sector capabilities to support bothWorkday HCM and Workday FM engagements to demonstrate commitment to assistingclients to meet their desired business outcomes. These investments would includehiring consultants who have deep understanding and experience of particular industrysectors, as well as developing industry focused tools and technologies to enhanceWorkday deployments.

n Invest in talent acquisition and retention programs: Demand outstrips supply in theWorkday services market. Service providers need to invest in talent acquisition andretention programs to attract and keep the best talent.

n Invest in training consultants to have a holistic view of the process(es): Serviceproviders should hire consultants with business function understanding. Clients wantservice providers to transform their operations and learn best practices to manage theirHR and finance functions. Service providers have opportunities to train consultantsacross Workday modules to be able to provide a holistic view of the HR or Financeprocess – or even across both of these. This will prove to be a real differentiator in themarket going forward.


Recommendations: Service Providers (4)n Target phase 2 engagements: Clients entering phase 2 deployments do not necessarily

use their initial implementation partner. There are therefore opportunities foradditional module implementation and especially for management services for all of theservice partners in the ecosystem.

Workday Services in the

As-a-Service Economy


Workday 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

20162017

Brokers ofCapability

Orientinggovernance tosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps

20162017

CollaborativeEngagement

Ensuring relationshipsarecontractedtodrivesustainedexpertiseanddefinedoutcomes

20162017

IntelligentAutomation

Using ofautomationandcognitivecomputingtoblendanalytics,talent,andtechnology 2016 2017 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• KhaldaDeSouzacoversdevelopmentsinITandBPOacrossEuropeforHfSandglobally

coverstheemergenceofservicesaroundsoftwareasaservice(SaaS)offerings.• ShehasextensiveexperienceinprovidingstrategicadvicetobothITservicesprovidersand

customerorganizationsglobally.Forproviders,thisincludes,butisnotlimitedto,channelstrategies,productpositioning,competitiveintelligence,markettrends,andforecastanalysis.Forclients,Khaldahasprovidedinsightfulguidanceonsourcingandvendorselectionstrategies.

PreviousExperience• PriortoHfS,Khaldawasasenior-levelITservicesresearchanalystatGartnerfornearly20

years.Inthattime,shemanagedEuropeanresearchforseveralareas,includingnetworkandITsecurityandbusinessapplications.Khaldahasledkeyresearchdeliverables,suchasMagicQuadrantsforbothEuropeandglobalmarketsatGartner.

Education• KhaldahasaBSc.fromAstonUniversityinInternationalBusinessandFrench.

[email protected]


About HfS Research

HfSResearch isTheServicesResearchCompany™—theleadinganalystauthorityandglobalcommunityforbusinessoperationsandITservices.Thefirmhelpsenterprisesvalidatetheirglobaloperatingmodelswithworld-classresearchandpeernetworking.

HfSResearchcoinedthetermTheAs-a-ServiceEconomy toillustratethechallengesandopportunitiesfacingenterprisesneedingtore-architecttheiroperationstothriveinanageofdigitaldisruption,whilegrapplingwithanincreasinglycomplexglobalbusinessenvironment.HfScreatedtheEightIdealsofBeingAs-a-Service asaguidingframeworktohelpservicebuyersandprovidersaddressthesechallengesandseizetheinitiative.

Withspecificfocusonthedigitizationofbusinessprocesses,intelligentautomationandoutsourcing,HfShasdeepindustryexpertiseinhealthcare,lifesciences,retail,manufacturing,energy, utilities,telecommunications andfinancialservices. HfSusesitsgroundbreakingBlueprintMethodology™toevaluatetheabilityofserviceandtechnologyproviderstoinnovateandexecutetheEightIdeals.

HfSfacilitatesathrivinganddynamicglobalcommunityofmorethan100,000activesubscribers,whichaddsrichnesstoitsresearch.Inaddition,HfSholdsseveralServiceLeadersSummits everyyear,bringingtogetherseniorservicebuyers,providersandtechnologysuppliersinanintimateforumtodevelopcollectiverecommendations—fortheindustryandadddepthtothefirm’sresearchpublicationsandanalystofferings.

Nowinits tenthyearofpublication,HfSResearch’sacclaimedblogHorsesforSources isthemostwidelyreadandtrusteddestinationforunfetteredcollectiveinsight,researchandopendebateaboutsourcingindustryissuesanddevelopments.HorsesforSourcesandtheHfSnetworkofsitesreceivemorethanamillionwebvisitsayear.

HfSwasnamed AnalystFirmoftheYearfor2016,alongsideGartnerandForrester,byleadinganalystobserverInfluencerRelations.

Documents

The Services Research Company™ - OneSource Virtual Services Research Company™ Khalda De Souza Principal Analyst, Services Strategies [email protected] HfS …