Introduction

The Human Resource Outsourcing (HRO) market has reached a critical juncture in its 10 year history with market size increasing but at a slower growth rate. While buyers are increasingly looking at HRO for multiple value creation opportunities, suppliers are seeking the most optimal way to provide improved services to clients at a cost that still allows for a profit. In this backdrop, this report provides comprehensive coverage of the global 2007 HRO market including detailed analyses on market size and buyer adoption, transaction characteristics, and supplier landscape. This report will assist key stakeholders (i.e., buyers, suppliers, technology providers, and investors) understand the changing dynamics of the HRO market and will help them identify value creation opportunities as well as identify potential risks involved.

Scope                    

• All human resources outsourcing contracts as of July 30, 2007 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 suppliers having signed at least one HRO transactions
• All industries

Contents

This report examines the global 2007 HRO market and provides insights, detailed analyses and implications for stakeholders along three key dimensions: Market size and buyer adoption; Transaction characteristics and value proposition; and Suppliers landscape. Each dimension is discussed in detail (and illustrated with supporting data and analysis) to provide the reader information in easy-to-apply, bite-size pieces. For example, Market size and buyer adoption offers the following insights, among others

• Market size & growth
  • HRO market size increasing, but growth rate has slowed
• Geographic trends
  • Decline in global deals as buyers adopt a phased approach
• Industry trends
  • Manufacturing & financial services are the leading adopters
• Market segments
  • Almost equal number of deals signed in both the market segments (3K-15K and >15K employees) to date; mid-market expected to see more activity
• Penetration
  • High untapped demand given low penetration
• Bundling
  • HRO is included in majority of multi-function outsourcing