Introduction

The Multi-Process Human Resources Outsourcing (MPHRO) market continued its steady growth at the rate of about 4% to reach US$3.42 billion in annualized revenue in 2014. New deals, mid-tenure scope expansions, and renewals emerged as the major drivers of growth in the market. More than half of the new deals had Asia Pacific in scope and more than a third got signed there, indicating increasing importance of this region. Global multi-continent deals witnessed a significant jump this year, demonstrating buyer confidence in large multi-country comprehensive HRO.

Business Process as a Service (BPaaS) continued to be adopted aggressively by MPHRO buyers with increased confidence in the model. Adoption of Workday and SuccessFactors within BPO construct increased as well. HR analytics became mainstream, with many major players coming out with basic as well as advanced analytics-based tools. In the provider landscape, the top five MPHRO providers continue to dominate the market, both in terms of revenue and number of active deals. However, Indian-heritage providers have been steadily increasing their share of the new deals signed in the market.

In this report, we analyze the MPHRO market across three dimensions:

• Market overview and key regional trends
• Buyer adoption and solution trends
• Service provider landscape

Scope of analysis

• HRO deals in which a minimum of three HR processes are included
• The buyer employee size is over 3,000 employees
• All geographies and industries

Content

This report provides a comprehensive coverage of the 2014 global MPHRO market and analyzes it across various dimensions such as market overview and key regional trends, buyer adoption and solution trends, and service provider landscape.

• The Multi-Process Human Resources Outsourcing (MPHRO) market continued its steady growth at the rate of about 4% to reach US$3.42 billion in annualized revenue in 2014
• New deals, mid-tenure scope expansions, and renewals emerged as the major drivers of growth in the market
• Asia Pacific, which got covered in more than half of the new deals, became the region to watch out for with promising growth and unique trends
• BPaaS continued to be adopted aggressively by HR outsourcing buyers with increased confidence in the model; Adoption of Workday and SuccessFactors within BPO construct increased as well
• HR analytics became mainstream with many major players coming out with basic as well as advanced analytics-based tools
• The top five MPHRO providers continue to dominate the market, both in terms of revenue and number of active deals
• However, Indian-heritage providers have been steadily increasing their share of new deals signed in the market
• Strong implementation capability, change management support, and relationship management besides SMAC, act as differentiators in the market