Aon Goes Back to its Roots; the (Re) Birth of an HR Outsourcing Specialist

On February 10, 2017, Aon, the British risk management and insurance brokerage firm, announced the sale of its outsourcing services business to Blackstone Group for US$4.8 billion. The sale included Benefits Administration Outsourcing (BAO), Multi-Process Human Resources Outsourcing (MPHRO), and other allied services such as implementation and Application Management Services (AMS) of HR technologies. This move divests Aon of its erstwhile HR outsourcing arm, Aon Hewitt, except for its HR consulting and advisory capabilities.

The divestiture also creates a new HR services specialist with US$2.3 billion revenue, 1,300 clients, and 22,000 employees. Questions now abound – under the changed circumstances, how can the new company leverage its strengths and shore up its weak links? How will the market dynamics affect its performance? What can its buyers expect? This viewpoint will answer these questions in detail.

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Human Resources Outsourcing (HRO)

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