Dallas, Texas (PRWEB) June 13, 2012
The global Multi-process Human Resources Outsourcing (MPHRO) market grew by a modest 2 percent in 2011, and the market is projected to grow 6 percent in annual contract value (ACV) this year, according to a new research report, Multi-process Human Resources Annual Report 2012 – Continued Reinvention. The study, published by Everest Group, a global consulting and research firm, projects the MPHRO market will reach US$3.3 billion in 2012.
Although there were a similar number of new MPHRO deals in 2010 and 2011, the market experienced nominal overall growth in 2011, primarily due to smaller sized contracts and contract non-renewals and terminations of legacy deals. Existing contracts, on the other hand, saw significant scope expansion contributing to market growth.
Everest Group’s MPHRO market projections for 2012 include:
“While deal terminations are of concern to the industry, we see that to be limited to a few providers. On the other hand, the scope expansion within existing deals signifies buyers’ desire to build onto their successes,” said Rajesh Ranjan, vice president. “Moving forward, we also expect to see procurement play an increasingly important role in managing HR-related spend in the coming years.”
Other report findings for the 2011 MPHRO market include:
Accenture, Aon Hewitt, IBM and NorthgateArinso together account for 53 percent of the MPHRO market in terms of ACV. ADP led providers in terms of new deals signed in 2010-11, largely due to the provider’s significant presence in the mid-market. Aon Hewitt achieved run-away success in terms of total contract value (TCV), holding 48 percent of TCV share, followed by IBM with 15 percent. India-heritage providers started to make their mark, albeit in smaller deals only.
“Last year saw a significant amount of M&A activity as providers were largely focused on advancing capabilities and gaining market entries,” said Ranjan. “We expect to see providers invest in building more robust analytics and integrated talent management offerings, work to move single-process HRO customers towards multi-process engagements and continue to tap into emerging markets.”
Other service providers covered in detail in the analysis include Caliber Point, Capgemini, Capita HR Solutions, Ceridian, Genpact, HCL, HP, Infosys, Logica, Neeyamo, TCS, Wipro, Xchanging and Xerox.
Everest Group’s analysis includes multi-process HRO contracts with a minimum of three HR processes covering 3,000 or more employees that were signed as of November 2011.
For more information or to purchase the report, Multi-process Human Resources Annual Report 2012 – Continued Reinvention, or inquire about other research services, please visit research.everestgrp.com, email info(at)everestgrp(dot)com or call +1-214-451-3110.
About Everest Group
Everest Group is an advisor to business leaders on the next generation of global services with a worldwide reputation for helping Global 1000 firms dramatically improve their performance by optimizing their back- and middle-office business services. With a fact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use and delivery of global services in their pursuits to balance short-term needs with long-term goals. Through its practical consulting, original research and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and sourcing models, technologies and management approaches. Established in 1991, Everest Group serves users of global services, providers of services, country organizations and private equity firms, in six continents across all industry categories. For more information, please visit http://www.everestgrp.com and research.everestgrp.com.