Workday-based Human Resources Business Process Services (HR BPS) – Climbing up the HR Operating Model Maturity Curve

12 Jul 2019
by Anil Vijayan, Priyanka Mitra, Sharath Hari N, Ravjot Sachdeva

Enterprises, nowadays, are facing evolving HR challenges in addition to the traditional ones of efficiency and cost reduction. Some of the evolving challenges are related to talent, global visibility and control, lack of data-driven decision making, and evolving employee demands. As a result of these and their current HR operating model, they are not able to leverage their HR functions to carry out various enterprise-wide HR initiatives. There is a need for them to reimagine their HR operating model to mitigate these challenges and drive strategic business outcomes.

A key component for this HR operating model transformation is the movement toward a cloud-based Human Capital Management (HCM) solution, such as Workday, SAP SuccessFactors, or Oracle HCM cloud. Workday, with its wide range of integrated offerings in the HCM space, has established itself as a key vendor in SaaS-based HR platform market. The Workday services market, too, has enjoyed considerable success over the recent years.

In this research, we focus on the following dimensions:

  • Workday and associated services
  • Workday-based HR BPS market
  • Service provider landscape for the Workday-based HR BPS market


This research provides comprehensive coverage of the 2018 Workday-based HR BPS market and analyzes it across various dimensions such as market overview, buyer adoption trends, solution trends, and service provider landscape. Some of the key findings are:

  • Enterprises need to reimagine their HR operating model to mitigate the key challenges plaguing today’s HR function and drive strategic business outcomes
  • Cloud-based HCM is a crucial transformational lever for enterprises planning to progress along the stages of HR operating model
  • Workday, with its wide range of integrated offerings in the Human Capital Management (HCM) space, has established itself as a leader in Software-as-a-Service-based (SaaS) HR platform market. Enterprises are yet to fully materialize the benefits of their Workday implementation through in-house service delivery – thus creating a demand for Workday-based HR BPO
  • Workday-based HR BPS market stands at US$690-710 million, registering a healthy growth rate of 15-20%. Workday-based HR BPS market has a promising future as an increasing number of enterprises are shifting toward HR BPS to reap full benefits of Workday
  • North America continues to lead the adoption of Workday-based HR BPS given its native origin; Europe and Asia Pacific are rapidly gaining share
  • Processes such as payroll, benefits, employee data management, employee contact center, and system maintenance are the most outsourced, while Workday’s relatively new modules, such as recruitment and learning, are yet to gain high traction in the market
  • Even in a Workday environment, service providers are supplementing Workday’s capabilities with RPA, analytics, and chatbots to enhance service delivery and improve employee experience
  • The top 4 players, Alight Solutions, Accenture, NGA HR, and OSV, command 85% of the Workday-based HR BPS market share by revenue

Membership (s)

Human Resources Outsourcing (HRO)


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