Gathering Momentum: Mid-Market HRO

4 Aug 2008
by Rajesh Ranjan



To date, employers in the larger segment, i.e., those in the over-15K active employees (>15K) segment, have received more attention because of the higher total revenue associated with these bigger HR outsourcing deals. However, lost in the hype of the bigger deals, there has also been a lot of activity in the mid-market, i.e., 3K-15K active employees segment. Sensing the opportunity, an increasing number of suppliers are eying this market now. This research report provides a comprehensive coverage of the 3K-15K employees segment including detailed analyses on market size and growth, comparison of transaction characteristics in the 3K-15K employees segment and the >15K employees segment, along with analyses on the changing market dynamics. The report will help the mid-market buyers understand their options in terms of suppliers, technology, and process scope. It will help the suppliers understand the potential in the mid-market segment and suggest ways in which they can make their strategy more effective.


  • All multi-process HRO deals as of December, 2007 with a minimum of three HR functions and servicing more than 3,000 employees
  • Geographic focus: Global
  • All industries


This research traces the growth of mid-market segment, and examines the factors that make it attractive for suppliers. Further, it compares the transaction characteristics of the 3K-15K employees segment and the >15K employees segment. It also identifies the key implications of the research findings for buyers and suppliers in the mid-market segment. Some of the findings in this report, among others, are:

  • While the overall HRO market slowed somewhat in 2007, the mid-market segment has remained stable in recent years
  • The mid-market is a potentially attractive segment due to high revenue and margin potential
  • Overall, there is lesser adoption of talent management components in the 3K-15K employees segment compared to the >15K employees segment, however, more transactions in the 3K-15K employees segment include the talent management components in the recent years
  • Within mid-market, the 3K-10K employees segment and the 10K-15K employees segment are dominated by different set of suppliers

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