Introduction:

In the backdrop of a tough economic environment, the multi-process HRO (MPHRO) market witnessed some fundamental shifts in 2009. While the new deal signings were relatively low, the market grew marginally to reach US$2.9 billion in annual contract value (ACV), influenced by several end-of-term decisions. The transaction characteristics were influenced by the changing preferences of the buyers and the maturing delivery models of suppliers. MPHRO supplier landscape witnessed significant shifts that included withdrawal of suppliers from the market, improving profitability of suppliers, and strategic acquisitions. Combined with improving economy and emergence of sustainable HRO models, 2010 promises to be a stronger year for MPHRO.

In this research study, we analyze the global MPHRO market in 2009. We focus on

• Market size and buyer adoption trends
• Transaction characteristics across process scope, geographic scope, contract term and TCV, pricing structures, technology, and global sourcing
• Evolving supplier landscape and the relative market shares of MPHRO suppliers
• Supplier evaluation and relative position on the Everest PEAK matrix
• 2009 MPHRO Market Star Performers based on performance and capability building in 2009
• Outlook for 2010

The scope of analysis includes:

• All HRO contracts, signed as of October 2009, 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 industries
• 15+ suppliers that have signed at least one HRO transaction. Suppliers covered include Accenture, ACS, ADP, Caliber Point, Capita, Ceridian, Convergys, HCL, Hewitt, IBM, Logica, Neeyamo, NorthgateArinso, TCS, Wipro, and Xchanging

Content

This report will assist key stakeholders (buyers, suppliers, technology providers) understand the changing dynamics of the MPHRO market and help them identify the trends and outlook for 2010. In this backdrop, this report provides comprehensive coverage of the global MPHRO market including detailed analysis on market size and growth, buyer adoption trends, transaction characteristics, and supplier landscape. Some of the findings in this report, among others, are:

• While North America continues to lead market adoption, the demand from Europe and Asia Pacific shows a significant increase in deal signings
• HRO market traction in 2009 was significantly stronger in the healthcare and government sectors; financial services saw a drastic decline
• The mid-market sector, facing reduced workforces that diluted viable business cases for MPHRO, witnessed a significant fall in deal signings from 2008-2009 after outpacing adoption by the large market from 2005-2007
• Platform-based solutions were the most dominant solutions adopted in 2009
• Everest updated its classification of 15+ MPHRO suppliers on the Everest Performance| Experience| Ability| Knowledge (PEAK) Matrix for MPHRO into leaders, major contenders, and emerging players
• Everest identified five suppliers as the “Star Performers of the 2009 MPHRO Market” – ADP, NorthgateArinso, IBM, TCS, and Wipro