Large technology companies are increasingly acquiring HR software companies, demonstrating a shift towards cloud-based HR management services. Oracle, SAP, and IBM all made major acquisitions in 2012 totaling over $6 billion. This reflects an industry-wide transition to cloud-based, software-as-a-service models being delivered by major enterprise technology providers. HR professionals will need to strengthen relationships with IT to influence decision making and ensure their needs are met during this transition.

1. HR Newsletter September
2012
An update examining recent developments in the market for HR
services, for people working in HR or managing HR costs
Large technology players are increasing their space and is likely to take place in other business
presence in the HR management field sectors.
Acquisitions in 2012
The world of HR solutions has undergone some
dramatic changes in the past few months and more
are on the way.
Oracle Corp. purchased HR software company Taleo
Corp. for $1.9 bn, SAP acquired employee
performance management company SuccessFactors for This new direction could benefit organisations with
$3.4bn and, most recently, IBM agreed to acquire strong relationships with key technology companies,
Kenexa, a HR software manager, for $1.3bn. and enable them to leverage their existing contracts
to obtain better service. On the other hand HR
Why the rise in acquisitions? Large enterprise software professionals need to remain cautious as the decision
firms are looking to modernise their offer by making making power could gradually shift towards their
cloud-based services available to their clients. This colleagues in IT. There is little doubt that HR teams
technology looks set to replace the previous model have already identified the benefits of working closely
based on selling software licences. The shift to a cloud with IT but now, more than ever, is the time to
based offering is not exclusive to the HR management strengthen these relationships.
Release cash Reduce cost Manage risk Improve ROI
T: +44 (0)20 7605 1600 E: info@4cassociates.com W: www.4cassociates.com

2. HR and Marketing to work together to make the Choosing the Correct Payment Method for your
most out of Social Recruitment. Recruitment Process Outsourcing Provider
When asked for his advice on using Social Media for When selecting an RPO provider, it is essential to
recruitment, Vasco Castro, Head of Research & ensure that the correct payment model is instilled if
Consulting at Potentialpark Communications, said; the business is to reach its goals. Three payment
“Do not abandon your social media presence. Make methods exist: Cost plus, Blended and Transactional.
sure you pick the right channel and keep up the Given the current economic outlook, 4C expects the
engagement”. At a time when the number of people pricing model to continue to move towards a
interacting through social media outlets continues to transactional basis as clients seek to limit spending
increase this is sound advice. when recruitment levels are low.
The difficulty for HR professionals is often selecting
the most effective channel. Given the number of
platforms in existence, from industry giants LinkedIn
and Twitter to emerging platforms including Pinterest
and Google +, HR can greatly benefit from working
with marketing to develop a tailored strategy. Using
their knowledge of online advertising, Search Engine
Optimisation and monitoring abilities, marketing
professionals can provide valuable support to their HR
colleagues.
Regardless of the payment method being used, best
practice dictates the insertion of a minimum revenue
clause in favour of the RPO provider. This will enable
organisations to build long-term, sustainable
relationships with their RPO providers and should be
inserted if not already in place.
Darren Morris, Asia Pacific Programme Director at
Hudson RPO, recently said; “In an RPO situation trust
is earned. It is difficult for trust to be given in an
implementation where there is often no existing
relationship”.
In 4C’s experience showing that you value your
relationship with a provider by guaranteeing a
minimum payment is paramount for a successful
collaboration. The last thing you want is for your RPO
provider to find itself in a loss-making contract.
4C Associates has the insight, technology and
experience to drive rapid profit improvement.
We offer specialist consulting, technology and
managed services to transform your costs. We
apply industry and functional expertise to deliver
In the words of Gwyn Burr, Customer Service and exceptional benefits.
Colleague Director at Sainsbury's; "We are focusing on
skill sets, rather than people moving within specialist Our team works with leading organisations across a
departments [...]It is about how to ensure colleagues range of cost categories including Direct Materials,
are absolutely aligned to the bigger strategic growth Services, Marketing, IT, HR, Logistics, Supply
plans." Chain, Property and FM. We apply deep practical
knowledge, combined with process and change
4C Associates believe that this collaboration is key, as skills, to deliver reduced costs and increased profits.
it enables procurement to focus on cost and
emphasise ROI. For example, procurement could To discuss how we can transform your costs please
decide to increase advertising spending on a website contact us at:
which attracts higher quality recruits. The sooner HR,
marketing and procurement get together to discuss a Tel: 0207 605 1600
social media strategy, the sooner the business will Web: www.4cassociates.com
reap the benefits. Email: Petra.urhofer@4cassociates.com
Release cash Reduce cost Manage risk Improve ROI
T: +44 (0)20 7605 1600 E: info@4cassociates.com W: www.4cassociates.com