HP move into HR BPO with the Nestle deal.

Read workforce management the other day, and saw that Nestle has agreed an HR BPO deal with HP. Rumours have been circulating for some time on this one. This is HP’s first major HR BPO deal. The scope is “some european” payroll, so it isnt a complete HR BPO transformation thing. My guess is that Nestle and HP want to try it out and build a model together that works. A sensible approach…

Nestle recently appointed a new CFO, and I think this is driving some of this activity. He is ex-Procter and Gamble, and they have an excellent track record in managing BPO partners. The HR deal is on the back of a deal with HP for parts of the finance processing.

I would expect HP to acquire an SAP HR consulting practice sometime soon, as SAP is the dominant packaged application platform for HR BPO. Accenture recently bought Pecaso, so who is next?

It will be interesting to compare Unilever and Nestle over the next couple of years. Nestle have an SAP HR platform which drives most HR transaction processes, but Unilever have a more fragmented set with a mix of PeopleSoft,  SAP payroll outside of the US and bits and pieces of other things too.

Bets anyone?

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6 thoughts on “HP move into HR BPO with the Nestle deal.

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