Introduction

Europe is the second largest multi-process HRO (MPHRO) market after North America. Over the years, the market grew to reach ~US$1 billion in Annual Contract Value (ACV) by 2009. In the backdrop of severe economic recession, while the new demand in the last couple of years was sluggish, there are indications that the market is again picking up in 2010. In addition to traditional MPHRO suppliers, several relatively new offshore-centric suppliers such as Caliber Point, HCL, Neeyamo, TCS, and Wipro entered the market to tap such emerging opportunities. In such a vibrant supplier landscape, it is important for European buyers to track the performance of suppliers and assess each supplier’s European capability along key dimensions such as scale, scope, technology capability, and geographic delivery footprint.

In this research study, we analyze the European HRO supplier landscape and cover:

• Supplier landscape overview
  • Market focus of suppliers in Europe
  • Overall market shares as well as market shares across key segments such as signing region, industry, and geographic scope
• Supplier assessment
  • Identification of suppliers as leaders, major contenders, and emerging suppliers using Everest’s PEAK Matrix framework
  • Delivery capability assessment of each supplier along four key dimensions – scale, scope, technology capability, and geographic 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
• Geography focus: All MPHRO deals covering Europe
• 15 suppliers that signed at least one MPHRO transaction covering Europe

Content

In this research study, we analyze the 2010 European MPHRO supplier landscape. The report provides an overview of the HRO supplier landscape in Europe and assesses the delivery capability of these suppliers for serving Europe. Some of the key findings of the research are:

• In all 15 suppliers comprise the European supplier landscape. These suppliers have varying focus based on functional and geographic scope
• Suppliers signed almost US$1 billion of TCV during 2008-09
• Accenture and Capita lead the European market with a share of almost 50% of the ACV. However, based on the number of deal signings in 2008-09, ADP and NorthgateArinso dominate with a share of almost 40%
• Everest classified 15 MPHRO suppliers on the European Everest PEAK Matrix (PEAK – Performance | Experience | Ability | Knowledge) into the categories of Leaders, Major Contenders, and Emerging Players. The PEAK Matrix is a framework to assess the absolute market success and overall capability of suppliers to date
• Our assessment shows clear differences among suppliers on an overall MPHRO delivery capability across scale, scope, technology capability, and geographic delivery footprint