HRO Annual Report 2011 - The Revival of Multi-process HRO Market

30 Mar 2011
by Rajesh Ranjan



After a dip in 2008 the multi-process HRO (MPHRO) market has gained significant momentum in 2010 through new deal signings and renewals. However, the average contract size and contract length of MPHRO deals continues to decrease. Given the cautious optimism prevalent in the market, buyers need to rigorously track the adoption trends, deals characteristics, service provider landscape and assess service provider capability along key dimensions such as scale, scope, technology capability, and global delivery footprint. There is stiff competition among several service providers in terms of market share. Everest Group updated its classification of 15+ MPHRO service providers on the Everest Group HRO PEAK Matrix (Performance | Experience | Ability | Knowledge). Everest Group has also identified five service providers as the “2010 MPHRO Market Star Performers”.

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

  • Market size and buyer adoption
  • Transaction characteristics
  • Service provider landscape
  • Everest outlook for 2011

Multi-process HRO market growth 

Scope of analysis

  • All HRO contracts, signed as of November 2010, with a minimum of three HR functions and servicing more than 3,000 employees
  • Global focus: North America, Europe, Asia Pacific, and Latin America
  • All industries
  • 15+ service providers that have signed at least one HRO transaction. Service providers covered include Accenture, ADP, Capita, Capgemini, Ceridian, Genpact , HCL, HP, Hewitt, IBM, Infosys, Logica, Neeyamo, NorthgateArinso, TCS, Wipro and Xchanging

Everest Performance | Experience | Ability | Knowledge (PEAK) Matrix for MPHRO 


This report examines the changing dynamics of the global MPHRO market and the service provider landscape. It gives an overview of the market size, buyer adoption trends, transaction characteristics and the service providers, highlighting the key developments in 2010 and changing service provider dynamics. It also predicts the Everest Group outlook for the MPHRO market in 2011. Some of the findings in this report, among others, are:

  • After a slow comeback in 2009, new deal activity is back in the MPHRO market. Overall, the MPHRO market reached US$3.07 billion in terms of ACV
  • In 2010 there was a substantial drop in terminations, indicating the stabilization of existing deals and improvement in buyer satisfaction
  • With the increasing adoption of a componentized model, the average process scope in deals continued to reduce in 2010
  • The adoption of platform-based solution is on the rise. In addition to mid-market, nearly 30% of the buyers that adopted platform-based solution are from the large market
  • There is an increase in the usage of global sourcing in MPHRO deals. India continues to remain the most popular offshoring location.
  • Everest Group PEAK Matrix categorizes MPHRO service providers into leaders, major contenders, and emerging players based on their market success and overall RPO delivery capability
  • Everest Group identified five service providers as the “2010 MPHRO Market Star Performers”
  • Our assessment shows clear differences among service providers along the different dimensions of delivery capability assessment

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