LiveHire onboards Korn Ferry RPO boosting revenue potential
LiveHire has secured its fourth enterprise agreement with Korn Ferry, one of the world’s leading Recruitment Process Outsourcing firms.
Talent acquisition platform LiveHire (ASX: LVH) has announced that it has secured its fourth enterprise agreement with Korn Ferry, one of the world’s leading Recruitment Process Outsourcing (RPO) firms, meaning that it will provide its platform to one of Korn Ferry’s clients.
The deal comes 3 months after LiveHire announced it had secured seven new client wins during 2018 including its largest contract win to date: a direct enterprise agreement with Vodafone Hutchison Australia (VHA), spanning approximately 2,500 people across its Australian operations and more than 120 company-owned retail stores nationwide.
Korn Ferry (NYSE: KFY) is a NYSE-listed organisational consulting firm that operates globally, helping clients synchronise strategy and talent to drive superior performance.
Without revealing the identity of its new client, LiveHire has revealed that its Korn Ferry client is a global leader of industrial, natural and financial businesses, with more than 11,000 employees.
The contract is expected to allow the company to significantly expand the addressable audience served by its award-winning talent acquisition and engagement platform that revolutionises the candidate experience and enables businesses to thrive with “talent on demand”.
Under the terms of the deal, LiveHire will be tasked with hosting what it calls “talent communities” for the full breadth of the Korn Ferry RPO contract in Australia, including iron ore mining assets, iron ore bulk handling facilities, steelworks, and recycling.
LiveHire’s technology will be harnessed to induce a flow of talent into the organisation using a holistic methodology, taking into account a variety of data points that help to effectively gauge the candidate’s profile.
By improving the efficiency with which candidates are screened, Korn Ferry’s client will be able to rapidly deploy, scale and integrate its workforce, and thereby, provide a secure “single source of truth” of data for the organisation, according to LiveHire.
In the second phase of LiveHire’s deployment, it is expected that the LiveHire platform will be integrated with the client’s Human Resource Information System (HRIS), Workday in order to generate further operational benefits.
“As a part of the first phase with this client, we will implement a fully integrated sourcing and engagement solution,” said Christy Forest, CEO of LiveHire.
Ms Forest said the addition of LiveHire’s platform “represents a powerful use case for the LiveHire platform in augmenting the Workday solution, applicable to many large enterprises in Australia and globally, with advanced talent pooling, AI, and machine learning to deliver unrivalled candidate and recruiter experience.”
Generating recurring revenue
LiveHire says the enterprise agreement is expected to generate annualised recurring revenue (ARR) of around $55,000 – “twice the current average” across LiveHire’s existing set of clients, valued at $27,885 per client in the company’s most recent quarterly metrics announcement published in September this year.
Furthermore, LiveHire has declared that its deal with Korn Ferry signals “significant progression” in its overarching strategy and demonstrates ongoing applicability and adoption of the LiveHire platform by larger enterprises.
“This is the fourth significant client which will go live in conjunction with Korn Ferry and one of many large enterprise engagements we currently have in the prospective sales pipeline together,” said Ms Forest.
Ms Forest added that “Korn Ferry is one of the leading innovators in RPO solutions in Australia and New Zealand and we are building the platform to transform the candidate and recruiter experience for its current clients and support its future growth strategy.”
News of LiveHire’s new enterprise agreement helped its shares to gain 22% up to $0.465 per share by midday.