TCP Solutions, payroll specialists for temporary contracts, active in 8 European countries, was acquired on 28 April by the American company People 2.0. This came as a welcome boost for the group after the commotion in the Netherlands following the collapse of the local activities of TCP. There was a brief period of uncertainty as to the future plans of the group.
NextConomy spoke to Rick Schevers, Managing Director and Jeff Smits, Marketing Manager at TCP Solutions, for their explanation of the course of events.
The acquisition, that at first glance may appear something of a shot in the dark, is the result of months of intensive contact between People 2.0 and TCP Solutions. In the words of Rick Schevers, “The people at People 2.0 have been closely monitoring our activities for a number of years and they remained faithful to us even during the events in the Netherlands. They have been watching us with an eagle eye, and were able to see how we worked our way through this crisis.”
“Despite the inaccurate reports that initially appeared in the Dutch media, People 2.0 maintained their trust in us. For us, that serves as recognition of the talent present in our organisation.”
Trust in what we do
Rick Schevers continued, “In unpredictable conditions like these, talent and expertise count more than ever. By buddying up with us, People 2.0 was able to see exactly what went wrong and evaluate the responsibility of the various stakeholders. Despite the inaccurate reports that initially appeared in the Dutch media, People 2.0 maintained their trust in us. For us, that serves as recognition of the talent present in our organisation, and reflects the fact that we are a well-oiled machine.”
One of three acquisitions
The American company People 2.0 also took over the Swiss-based Capital GES and WePayPeople from Amsterdam. These acquisitions have strengthened the role of People 2.0 as an international service provider. The three newly acquired businesses also complement one another, both in terms of geography and the types of service they provide. Whereas TCP are specialists in payrolling for temporary contracts, the services provided by Capital GES are focused more on payroll solutions for permanent staff. That sector of the Dutch market is covered by WePayPeople. The series of acquisitions will enable People 2.0 to align its service package on a regional basis, with the prospect of evolving a clear global structure.
Rick Schevers went on, “The acquisition means we are now represented in more than 40 countries, as compared with the 8 countries in which we were originally active. That in turn increases our commercial effectiveness and strengthens our competitive position. There are no other players that offer the kind of solutions we provide in quite the same way, namely independent payroll solutions for both permanent staff and temporary contracts.”
“A solid partner in international compliancy immediately improves the capacity of organisations to form a flexible, international workforce.”
Experts in all 40 countries
In Rick Schevers’ words, “the acquisition was officially concluded on 28 April and we are already reaping the benefits, for example by sharing opportunities as they emerge on the market. We are currently working to lay the foundations for cooperation between the various newly acquired entities and we are already taking up in a position in countries where until now we were less well represented.”
Stronger international compliancy
Rick Schevers went on, “We can now also offer a far broader range of advice on payrolling and compliancy. Our knowledge base has been massively expanded and now includes experts in all 40 countries. That broad base is clearly what the market is currently calling for. The labour market is continuing to become increasingly global, but there is still a growing shortage of experts, worldwide. A strong partner in international compliancy immediately improves the capacity of organisations to form a flexible international workforce.”
“This is a period in which businesses are being forced to recognise the necessity to respond rapidly. The need to improve the organisation of flexible employment is becoming increasingly urgent.”
Growth despite Coronavirus
“The corona crisis has not put a real spanner in the works,” commented Schevers. “Even now we are still growing, partly because many businesses see flexible employment as a solution in today’s difficult conditions. We are however fortunate that we are not particularly active in the hospitality or travel sectors. This is a period in which businesses are being forced to recognise the necessity to respond rapidly. The need to improve the organisation of flexible employment is becoming increasingly urgent. At the same time we ourselves are currently taking on new staff. 8 new colleagues are ready to take up positions in Antwerp, London, Berlin and Gothenburg.” “This crisis period is in fact also an ideal moment to identify profiles that would otherwise never have come available on the labour market,” suggested Jeff Smits.
Opportunities for Belgian businesses
Jeff Smits continued, “Our stronger international position also offers opportunities for Belgian businesses that are looking abroad. In other words, it is well worth it for businesses that are aiming to attract profiles from abroad or that have plans to work with foreign branches to pay a visit to the TCP offices in Antwerp. The same applies the other way around too. If foreign businesses are looking to strengthen their workforce with Belgian professionals, or are keen to set up shop in Belgium, we can easily meet their needs in terms of payrolling and compliancy. We are also in a better position to serve the many American companies already established in Belgium.
Continuing to operate under our current name
For the time being, TCP Solutions will continue to provide its services under the current name. “A good solution for the customer is more important than rebranding. In many countries – in particular on its own domestic market in the UK – TCP is a solid brand, and we intend to continue to build on that branding. That does not necessarily mean there will be no change at some point in the future. But only when the time is right,” concluded Schevers.
“People 2.0 is working to establish a new management team for each region but there are no plans for shedding staff. In fact we are hard at work strengthening the team.“
Until recently, TCP Solutions was active in 8 European countries and employed a staff of around 40. In Belgium, the TCP Solutions office in Antwerp is the base for three local experts. They receive excellent support from the head office in the UK, where all central services are covered.
People 2.0 has been active since 2011 and through this acquisition has strengthened its ambition to become a solid, independent global service provider for market parties wishing to bring people together. Specialising in correct forms of contracts enables our customers to concentrate on their core business: matching people and work. With a series of six acquisitions in less than two years, the group is working hard to realise its international strategy. Following the takeovers, the group now employs more than 200 people in 40 countries, and has reinforced its position in America, Canada, Europe and Asia.
Nextconomy Article NL/FR