Multi-Process Human Resources Outsourcing (MPHRO) – Service Provider Landscape with PEAK Matrix™ Assessment 2014

Introduction

The Multi-Process Human Resources Outsourcing (MPHRO) market is witnessing rapid evolution – the dynamics have changed in the last couple of years and its reach has broadened. While the incumbents still dominate the more mature MPHRO markets (North America and Western Europe), they are facing tough competition from newer entrants in the emerging markets, which are the primary growth levers in MPHRO. The focus is steadily shifting towards the emerging markets (majorly APAC), where an understanding of the local dynamics is becoming the proverbial “key to success”. Buyers are demanding more than just cost-reduction, and, hence, cloud and analytics are growing in importance. Companies such as Workday and SuccessFactors have disrupted the market landscape, prompting HRO service providers to take notice. What we are also witnessing is that service providers are moving out of their “comfort zone” to adapt to this changing environment.

In this research, we analyze the MPHRO service provider landscape across various dimensions:

• MPHRO service provider landscape overview
• MPHRO PEAK Matrix 2014 and Star Performers 2014
• Key insights on PEAK Matrix dimensions
• Emerging trends

Scope of analysis

• HRO deals with a minimum of three HR processes are included
• All HRO deals signed as of December 2013
• Deals where buyer employee size is 3,000 or more
• All geographies and industries

Content

This report gives an overview of the provider landscape and analyzes how the service providers differentiate themselves. Based on the comprehensive Everest Group PEAK Matrix, each of the 18 MPHRO service providers are segmented into Leaders, Major Contenders, and Emerging Players. Additionally, this report identifies the 2014 MPHRO Star Performers and provides key insights on individual PEAK dimensions:

• The MPHRO market showed marginal increase in growth in 2013 compared to 2012; moderate number of new deal signings was offset by increase in new deal sizes
• In a significant turnaround, local Asia Pacific-headquartered organizations emerged as key adopters of MPHRO, in addition to western-headquartered organizations
• Service providers are back with mega-sized and global deals
• Local players are driving growth in APAC
• Cloud and Analytics are becoming increasingly important in MPHRO deals

Everest Group has a complimentary four-page PEAK Matrix preview document for this service provider landscape report.