Multi-process Human Resources Outsourcing (MPHRO) – State of the Market Report 2021
State of the Market Report

25 Feb 2021
by Anil Vijayan, Priyanka Mitra, Sharath Hari N

The pandemic has brought with it multiple challenges for organizations as well as service providers. The economic crisis associated with the pandemic and the need to rapidly adapt to a new remote working environment has affected organizations’ ability to effectively manage their operations. Cost pressures, coupled with dynamic regulatory changes, and the need to ensure employee experience, have forced enterprises to review their HR service delivery model. While COVID-19, did result in slowing down the MPHRO market, we expect the demand to pick back up, primarily driven by the enterprises’ need to future-proof their HR function.

In this report, we analyze the key trends, drivers, and investment themes of the MPHRO market. We focus on:

  • Key challenges brought by COVID-19 and its impact on the MPHRO market
  • Key buyer adoption and solution trends
  • Service provider landscape and key investment themes


  • HRO deals where a minimum of three HR processes are included and the buyer employee size is 3,000 or more
  • All industries and geographies


This report provides comprehensive coverage of the 2020 MPHRO services market and analyzes it across various dimensions such as market overview, buyer adoption trends, solution trends, and service provider landscape. Some of the findings in this report are:

  • Despite short-term disruptions in 2020 due to COVID-19, the MPHRO market is expected to grow at a steady rate of 5-7% over 2020-22. This is primarily driven by increased openness among organizations to future-proof their HR operations
  • North America is the most mature geography by MPHRO adoption, followed by Europe-UK and Asia Pacific. APAC is expected to become a hotbed for HR transformation due to COVID-19 impact
  • Financial services and manufacturing constitute a major share of the MPHRO market; healthcare and life sciences underwent significant growth and are expected to grow further despite COVID-19 impact
  • There has been a marked increase in the inclusion of talent management processes as buyers look toward taking an end-to-end approach to their MPHRO deals
  • Output-based pricing continues to be the most popular pricing model; Input-based pricing is also being used in some emerging markets and in first generation contracts
  • The top four providers (Alight, Accenture, ADP, and IBM) contributed more than 40% of the market share in terms of ACV
  • Leading providers experienced strong traction from the more mature markets; in emerging markets, local players featured more prominently
  • ADP has significant presence across the top four industry segments for MPHRO; TCS has the highest number of deals in the retail industry segment


Human Resources

Sourcing and Vendor Management


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