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ExcellerateHRO Chief Bohannon Departs

August 3, 2006
ExcellerateHRO’s founding CEO Steve Bohannon has left the firm after 17 months at the helm.

Bohannon, who was vice president of HR services at EDS before the company partnered with Towers Perrin to create ExcellerateHRO in 2005, has left “to pursue other opportunities,” says Helen Leflar, a spokeswoman.

Analysts, however, suspect Bohannon was pushed out. 

“It’s surprising because Steve has been such a longstanding presence in the HRO world,” says Lisa Rowan, an analyst with IDC.

Why Bohannon left the company was not clear. However, ExcellerateHRO has not been amassing deals as quickly as some of its competitors have. The company’s most noteworthy HRO deal of late was a multiyear contract with Cardinal Health, which analysts valued at $300 million to $400 million.

“ExcellerateHRO hadn’t made huge strides in the market,” says Phil Fersht, an analyst with Everest Group. “But right now they are bidding on quite some big deals.”

Bohannon’s departure is just yet another sign of how quickly the faces change among the big HRO providers, analysts say.

Before joining EDS in 2003, Bohannon was chief strategy officer of Synhrgy HR Technologies, which was acquired by Mercer Human Resource Consulting in 2004. Under his leadership, Synhrgy’s revenue grew 35 percent in 2002. Bohannon also served as a partner and COO of PricewaterhouseCoopers’ Unifi Internet division from 1999 to 2001. Prior to that he was a partner at Hewitt Associates for 13 years, where he led the company’s growth in benefits outsourcing to HR outsourcing.

Kathryn Kelly, former VP of strategy and growth at ExcellerateHRO, and COO Michael Caruso are taking over for Bohannon, Leflar says. Kelly’s new title is president.

ExcellerateHRO has seven HRO deals and three more in the works, Kelly says. She declined to comment on the circumstances of Bohannon’s departure.

--Jessica Marquez