The global Multi-process Human Resource Outsourcing (MPHRO) market grew at a healthy rate of ~5% during 2017-2019. This trend is expected to continue over the next two to three years, with the market breaching US$5 billion by 2021. The steady growth can be credited to mid-markets (especially from North America), along with Asia Pacific and Latin America.

The pressure to reduce costs, talent-related issues, and the need to improve employee experience continue to be key challenges in the HR ecosystem and play an important role in driving significant changes for both buyers and service providers. Evolving buyer objectives – which now revolve around increasing leverage of technologies such as automation, analytics, and the cloud – are aimed at overcoming precisely these challenges. Hence, service providers need to correspondingly evolve into becoming strategic partners and work closely with enterprises to meet their changing demands. They are thus investing heavily in building strong technological ecosystems through either partnerships or acquisitions, as well as expanding their capabilities to support judgment-intensive decision-making.

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

• Buyer objectives and service provider initiatives
• Market overview and adoption trends
• Solution characteristics
• Service provider landscape
• Outlook for 2021

Scope

• MPHRO deals in which a minimum of three HR processes are included
• Deals for which the buyer employee size is 3,000 or more
• All geographies and industries
• We have analyzed the following service providers as part of this report: Accenture, ADP, Alight Solutions, Capgemini, Capita, CGI, Conduent, DXC Technology, Hexaware, IBM, Infosys, MHR, Neeyamo, NGA HR, SD Worx, TCS, Toutatis, Wipro, WNS, and Zalaris

Contents

This research provides comprehensive coverage of the 2019 MPHRO market and analyzes it across various dimensions, such as buyer objectives, market overview, and the evolving market situation. Some of our key findings are:

• Key challenges for the HR ecosystem include high cost of operations, talent-related issues, and the need to enhance employee experience
• Key drivers of the MPHRO market are new deals from mid-markets in North America and geographies such as Asia Pacific and Latin America
• Evolving buyer objectives are indicative of the urgency to access digital solutions, which will significantly mitigate HR challenges
• With enterprises taking a more strategic outlook toward HRO, there is a marked increase in talent management processes with the aim to transform HR processes end-to-end rather than focus on transactional processes in isolation
• Market leaders have experienced strong traction from the more mature markets; in emerging markets, local players feature more prominently
• Service providers will be forced to develop competitive pricing, along with innovative offerings, to counter a potential recessionary wave

Membership(s)

Human Resources Outsourcing (HRO)