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). The slow market growth forced suppliers to refine their market strategy in many ways. During 2009, the MPHRO market witnessed several key developments such as acquisitions, market entry, withdrawal, and others. In such a turbulent supplier landscape, buyers would need to track the performance of suppliers in relevant segments and assess each supplier’s capability along key dimensions such as scale, scope, technology capability, and global delivery footprint.

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

• Market and supplier overview
• Supplier dynamics and upcoming trends
• Supplier share analyses
• Supplier performance and capability
• Delivery capability assessment of suppliers along four key dimensions- Scale, scope, technology capability, and delivery footprint

Scope of analysis

• 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 examines the changing dynamics of the global HRO supplier landscape and its impact on the HRO market. It gives an overview of the market and the suppliers, highlights the changing supplier dynamics and key developments in 2009, analyses the supplier shares in four segments, and assesses the delivery capability and performance of suppliers in 2009. It also identifies the key implications of the research findings for buyers and suppliers.

• The MPHRO supplier landscape continues to evolve as suppliers continue to enter and exit the market. There are currently 15+ active suppliers in the market
• In 2009, several suppliers refined their strategies related to overall market presence and MPHRO deals pursuit
• Strategy refinements related to market presence led to acquisitions, withdrawal from the MPHRO market, and diversification into the SPHRO market
• Strategy refinements related to MPHRO deals pursuit were related to target market segment, technology offering, and delivery model
• 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
• ADP leads the market in terms of number of deal signings. Hewitt, followed by IBM leads the market in terms of ACV. In 2009, offshore-led suppliers such as TCS and Wipro signed a significant number of deals to account for 32% of the overall signings in 2009. However, given the smaller size of these deals, they account for just 5% of the TCV signed in 2009