There are some major shifts taking place in the
11-year old multi-process Human Resource Outsourcing (HRO) market. While the
fundamental drivers behind outsourcing multiple human resources processes are
still strong, the ways and means to achieve them are changing. In a challenging
economic environment, buyers are looking to reduce their direct and indirect
cost in the shortest time possible. Existing suppliers continue to refine their
strategy to serve their clients profitably while new suppliers are eyeing
underserved areas. In this backdrop, this report provides comprehensive
coverage of the global 2008 HRO market including detailed analyses on market
size and buyer adoption, transaction characteristics, and supplier landscape.
This report will assist key stakeholders (i.e., buyers, suppliers, and
technology providers) understand the changing dynamics of the HRO market and
will help them identify value creation opportunities as well as identify
potential risks involved.
Scope
All human resources outsourcing contracts as of July
30, 2008 with a minimum of three HR functions and servicing more than 3,000
employees
Global focus: North America, Europe, Asia Pacific, and
Latin America
All suppliers having signed at least one HRO
transactions
All industries
Contents
This report examines the global 2008 HRO market and
provides insights, detailed analyses and implications for stakeholders along
three key dimensions: market size and buyer adoption; transaction
characteristics and value proposition; and supplier landscape. Each dimension
is discussed in detail (and illustrated with supporting data and analysis) to
provide the reader information in easy-to-apply, bite-size pieces. For example,
market size and buyer adoption offers the following insights, among others:
Market size & growth: The multi-process HRO market
slowed down in 2008, and we estimate it will reach US$ 2.9 billion by the end
of the year, in terms of ACV.Compared
to 47 new deals signed in 2007, we expect 28-32 deals to be signed in 2008.
However, multiple factors will ensure market growth in the future
Changing dynamics: In a slowing economy, buyers prefer
a componentized model over a wide-scope transformation model. An “offshore-led”
lift-and-shift model is coming into play for buyers looking for early cost
savings
Buyer adoption trends: Buyer adoption varies across
geography, industry, and employee segments. Demand from Continental Europe and
the UK continues to rise; manufacturing, high-tech and telecom, and financial
services are the leading adopters of HRO; in terms of number of deals, the
mid-market is growing at a faster rate than the large market
Potential and penetration: The multi-process HRO
market has low penetration, especially in the mid-market. Both the mid-market and
large market have comparable revenue potential
Note: this report is from 2012. See our most recent R2R research report.
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