Multi-Process Human Resources Outsourcing (MPHRO) – Annual Report 2014: The Times Are Changing

28 May 2014
by Rajesh Ranjan



The MPHRO market witnessed a marginal increase in growth in 2013 compared to 2012. This was driven mainly by mega-sized deal signings (covering over 50,000 employees) and increasing activity from Asia Pacific-based buyers. Multi-country deals, especially global, increased. This is a demonstration of buyer confidence in the “large multi-country comprehensive HRO”. Third-party BPaaS (process + SaaS) solutions had a big/significant impact on MPHRO deals and Analytics emerged beyond the “theory of text-books” with real-world examples. On the other side, service providers of Indian-heritage have broken the tag of “new players” and are getting recognized by both buyers and competitors. Other service providers are adopting new strategies, such as increased focus on single-process HR, investing in enhanced offerings, etc., to deal with the slowing MPHRO market.

In this report, we analyze the MPHRO market across various dimensions:

  • Market overview and key regional trends
  • Buyer adoption and solution trends
  • Service provider landscape

Service Provider Market Share

Scope of analysis

  • HRO deals in which a minimum of three HR processes are included
  • The buyer employee size is over 3,000 employees
  • All geographies and industries

MPHRO Market Growth across Geographies


This report provides a comprehensive coverage of the 2013 global MPHRO market and analyzes it across various dimensions such as market overview and key regional trends, buyer adoption and solution trends, and service provider landscape.

  • The MPHRO market showed marginal increase in growth in 2013, compared to 2012. A moderate number of new deal signings was offset by a significant increase in new deal sizes, which drove the market growth
  • In a significant turnaround, local Asia Pacific-headquartered organizations emerged as key adopters of MPHRO
  • In addition to the traditional BPaaS solutions offered by the likes of ADP, NGA, and TCS, new-age BPaaS solutions (Workday and SuccessFactors), which had made a strong mark in the wider HR market, made their entry into the HRO arena
  • Analytics emerged beyond the “theory of text-books” with real-world examples. Descriptive analytics with operational impact is leading currently, with more advanced usage on the anvil
  • Indian-heritage players have broken the tag of “new players”, as they start to get recognized by both buyers and competitors
  • Faced with a slow-growth MPHRO market, providers are investing in enhanced offerings around high-value services (such as analytics), which are gaining interest and can command higher margins

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