BPaaS sets Alight alight
Feb 24, 2022
Finance and HR Business Process Services (BPS) specialist Alight, often flies “under the radar” in the UK but remains a “Top 20 BPS player” having completed a few years of stand-alone operation since spinning out from former parent AON. Briefly owned by Blackstone Alight IPO’d last year on the New York Stock Exchange and is perhaps best known in the UK for its 2019 acquisition of Hemel Hempstead HQ’d HR and payroll NGA Human Resources – see here . It’s also been betting big on digital BPS solutions, specifically Business Process as a Service (BPaaS) serving health, wealth and wellbeing with solutions built on a range of platforms including Workday, SAP, Oracle and Cornerstone. Full Year results were out overnight and show its progress to date through the numbers. Alight grew full year revenue 6.9% to $2,915m and adjusted EBITDA 10.1% to $621m well ahead of its initial 1% revenue growth and $600m adjusted EBITDA forecasts. Driving growth is the digital side of the business with BPaaS full year revenue growing 16.8% to $390m, now representing 13.4% of total revenue, and ahead of the initial 12% 2021 forecast. BPaaS full year bookings on a total contract value (TCV) basis increased 128% to $602m well ahead of its original January full-year forecast of $395m. All BPS providers are taking the same journey to lesser or greater extent towards digital provision of services. Alight has had the luxury of being in a position to a) fund significant investment in its go-to market workforce and technology which includes the release of multiple new products and its Alight Worklife platform and b) has probably benefited from a “blank slate” on its brand positioning which allows for a more rapid pivot towards BPaaS and digital than some of the competition.