Adoption of third-party BPaaS solutions have been on the rise over the last few years, with Workday and SuccessFactors emerging as the key vendors.
Dallas, Texas (PRWEB) October 02, 2015
The Multi-Process Human Resources Outsourcing (MPHRO) market continued its steady growth at the rate of about 4 percent to reach US$3.42 billion in annualized revenue in 2014. The biggest contributor to this growth was new deals, and, in this respect, the Asia Pacific region became the region to watch. 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 in the MPHRO market.
From a technology perspective, Business Process as a Service (BPaaS) continued to be adopted aggressively by MPHRO buyers in 2014, due to increasing confidence in the model and the popularity of Software as a Service (SaaS) platforms such as Workday and SuccessFactors. HR analytics became mainstream, with many major players coming out with basic as well as advanced analytics-based tools.
“Adoption of third-party BPaaS solutions have been on the rise over the last few years, with Workday and SuccessFactors emerging as the key vendors,” said Rajesh Ranjan, partner at Everest Group. “In fact some MPHRO providers now have almost a third of their clients on one platform or the other. Mid- and large-size companies lead the way in adoption of Workday and SuccessFactors, with 70 percent of such deals in the developed markets of North America and Europe.
“Also, analytics isn’t hype in the MPHRO market. Organizations are demanding and major service providers are providing both basic and advanced HR analytics solutions across the HR value chain, encompassing such areas as performance management, employee satisfaction, retention and more,” Ranjan continued.
These results and other findings are explored in a recently published Everest Group report: Multi-Process Human Resources Outsourcing (MPHRO) Annual Report – Transition to Changing Realities.
This report provides a comprehensive coverage of the MPHRO market and analyzes it across various dimensions such as market overview & key regional trends, buyer adoption & solution trends, and service provider landscape.
Other key findings in the report:
- New deals, mid-tenure scope expansions, and renewals emerged as the major drivers of growth in the market
- HR analytics became mainstream with many major players coming out with basic
- 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
***Download Complimentary 11-page Preview Report Here*** (Registration required.) This preview summarizes the report methodology, contents and key findings and offers additional resources for further study.
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About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at research.everestgrp.com.