PR Newswire | November 03, 2023
Kelly a leading global specialty talent solutions provider, today announced that it has entered into a definitive agreement to sell its European staffing business to Gi Group Holdings S.P.A. ("Gi"), one of the largest staffing companies in Europe, for cash consideration of up to €130 million. The transaction is expected to close in the first quarter of 2024, subject to receipt of required regulatory approvals and other customary closing conditions.
Under the terms of the agreement, Kelly will transfer its European staffing business within its International operating segment to Gi. Kelly provides staffing services to customers in 14 countries across Europe. The company will retain its managed service provider, recruitment process outsourcing, and functional service provider (FSP) business with customers in the Europe, Middle East, and Africa (EMEA) region.
Following the close of the transaction, Kelly will maintain its global footprint and continue to provide MSP, RPO, and FSP solutions to customers in the EMEA region through KellyOCG, Kelly's outsourcing and consulting group. As a leading global vendor-neutral provider of talent supply chain strategies and workforce solutions, KellyOCG leverages a network of 3,000 suppliers spanning 140 countries – including Gi – to connect customers across North America, Asia Pacific, and EMEA with top talent to grow their businesses. In Everest Group's 2023 PEAK Matrix®, KellyOCG was recognized as a leader and major contender for its MSP and RPO solutions, respectively, with the latter earning KellyOCG star performer status. Everest Group also recognized KellyOCG as a leader and star performer in statement-of-work (SOW) management.
said Peter Quigley, president and chief executive officer.
The sale of Kelly's European staffing business demonstrates our commitment to taking bold, transformative action to optimize our portfolio and maximize value creation. This transaction unlocks significant capital to pursue organic and inorganic investments in our chosen specialties. Furthermore, it sharpens our focus on our higher margin, higher growth global MSP solutions, global RPO solutions, and specialty outcome-based and staffing services in North America. Together, we expect these outcomes will accelerate Kelly's progress toward achieving a normalized, adjusted EBITDA margin in the range of 3.3% to 3.5% as we shared in August and drive profitable growth over the long term.
The transaction is the latest in a series of strategic actions Kelly has executed to unlock capital in pursuit of its specialty strategy and further optimize its operating model, which includes monetizing non-core real estate holdings and businesses; unwinding Kelly's cross-shareholding arrangement with Persol and reducing the company's ownership interest in PersolKelly, its Asia-Pacific staffing joint venture; selling its operations in Brazil and Russia; and most recently, implementing strategic restructuring actions which enhance organizational efficiency and effectiveness.
Quigley and Olivier Thirot, executive vice president and chief financial officer, will provide additional details about this transaction as it relates to the company's specialty strategy during its upcoming third-quarter earnings conference call on November 9, 2023.
UKG | November 07, 2023
UKG Labs welcomes a second cohort of startups from four countries, all focused on enhancing business cultures.
Startups Bites, Denim, Hop In Technologies, and Mo were selected for their innovative workforce technologies and commitment to workplace wellbeing.
Despite offering a collaborative platform, UKG Labs poses potential risks, including over-reliance on UKG, intellectual property disputes, and a possible compromise of the startups' original visions.
UKG, a leading HR, payroll, and workforce management solutions provider, has introduced its second cohort of early-stage companies to its global startup ecosystem, UKG Labs. The selected startups, from four different countries, are committed to creating high-performing, people-centric cultures in businesses.
The new entrants include Bites from Israel, Denim from the U.S., Hop In Technologies from Canada, and Mo from the U.K. These companies were chosen for their innovative technologies that add value to the frontline workforce and their commitment to helping people thrive at work.
UKG Labs provides more than just capital to these startups. It offers a platform for co-learning, co-creation, and co-experimentation, allowing startups to gain insights into specific market problems where UKG has expertise. The startups also work directly with UKG customers to explore new solutions and shape emerging HR and HCM technologies.
Hugo Sarrazin, Chief Product and Technology Officer at UKG, stated that the goal of UKG Labs is to help businesses become great workplaces by building an ecosystem of technology companies that share its vision. The startup founders have completed a three-month onboarding engagement and will showcase their innovations at the UKG Aspire 2023 conference.
While the UKG Labs initiative offers numerous benefits, it does come with potential drawbacks. The startups involved might become overly reliant on UKG for resources and expertise, which could potentially stifle its independence and creativity. There's also a risk of intellectual property disputes, and the startups' original visions might be compromised to align with UKG's goals. On the brighter side, UKG Labs provides a platform for startups to co-learn, co-create, and co-experiment, fostering innovation and helping businesses become better workplaces. It also allows startups to gain insights into specific market problems where UKG has expertise and work directly with UKG customers to explore new solutions and shape emerging HR and HCM technologies. This collaboration ultimately serves to enhance the workplace experience for all.
Business Wire | October 27, 2023
Businesses and technology workers should acquire and implement new skills, including generative AI capabilities, “cautiously but continuously” as talent acquisition power swings back to the employer, says an expert with Information Services Group (ISG) leading global technology research and advisory firm.
Speaking during the annual All Day DevOps virtual event today, Ola Chowning, partner and Digital lead for ISG North Europe, said the rise of new AI technologies and increased globalization are changing the balance of power in the global market for IT talent. Software developers and IT operations professionals, she said, are being forced to skill up or be left behind.
2023 has been the year of widespread worry about the ‘AI-apocalypse. The potential implications of generative AI, the growing maturity of the DevOps skills market and the willingness of employers to source cost-effective digital talent from new geographies like Spain, Portugal, Mexico and Vietnam, have put additional strain on an already nervous talent market.
Chowning’s comments came during her 30-minute online presentation, “DevOps Talent & Skills - 2023 Update,” today at 1 p.m., U.S. Eastern Time. This is Chowning’s sixth consecutive appearance at All Day DevOps, the largest event of its kind in the industry.
In her presentation, Chowning explored how organizations and DevOps experts are coping with a changing global market for IT talent that is being impacted by technology that can deliver dramatic increases in productivity, and at the same time, also increase employee concerns over job stability.
Chowning said organizations and DevOps practitioners need to lean into AI’s abilities to generate original ideas, designs and solutions, simulate outcomes of creative strategies, allow team members to collaborate with less friction and deliver greater insight and efficiency with cautious optimism rather than fear, uncertainty or doubt.
“We are not in an AI apocalypse,” she said. “Companies that can stay agile in the face of rapid change in technology, promote self-learning and empower talent will see a real boost in innovation, productivity and continuous transformation. The key for businesses and DevOps practitioners alike is to proceed cautiously but continuously.”
Leaders should establish an AI architecture and environment (including appropriate policies as necessary) and educate IT teams in how to recognize, access and use the right AI tools for the right job, ideally through an already established cognitive framework and environment for AI tools and capabilities, she said.
“Technology employees know that natural language processors and service provider talent and skill sets in traditional and emerging geographies are likely to be part of organizations’ labor strategies,” Chowning said. “Despite this shift in power, deep technology skills and expertise will never lose their value. Organizations should be transparent about their company and IT values to attract employees even in turbulent times.”
The eighth annual All Day DevOps 24-hour live stream event started at 3 a.m., U.S. Eastern Time, today. The conference features 180 practitioner-led sessions, across six tracks: CI/CD Continuous Everything; Modern Infrastructure; DevSecOps; Cultural Transformation, Site Reliability Engineering and the Software Supply Chain.
ISG (Information Services Group) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data.