Introduction

The MPHRO market continues to get reinvented across multiple dimensions. It is manifested across buyer adoption, contract and solution characteristics, as well as service provider landscape and capabilities. While the growth is still muted compared to the overall HRO market, expansion of the MPHRO adoption in new geographies, greater global sourcing leverage, and innovation on the technology front is redefining the MPHRO turf. While deal terminations are a cause of concern, the scope expansion within existing deals signifies satisfied buyers’ desire to build on to their success. Buyers need to understand these dynamics to align their sourcing with broader HR transformation. Providers need to align their offerings and capabilities to succeed in this dynamic market.

In this research study, we analyze the MPHRO market across various dimensions:

• Market overview and key dynamics
• Buyer adoption and solution trends
• Service provider landscape
• Outlook for 2012

Scope of analysis

• HRO deals in which a minimum of three HR processes are included
• The buyer employee size is over 3,000 employees
• All geographies and industries

Content

This report provides a comprehensive coverage of the 2011 MPHRO market and analyzes it across various dimensions such as market overview and key dynamics, buyer adoption and solution trends, and service provider landscape. Additionally, it includes predictions for the 2012 MPHRO market. Some of the findings in this report, among others, are:

• While the overall HRO market is growing at a healthy rate, the MPHRO grew by a modest 2% to reach an annualized spend of US$3.12 billion in 2011
• The factors impacting growth were analyzed through key dynamics in new deal signings, renewal activity, and terminations
• Transaction-intensive processes are core but talent management components are increasingly considered
• Buyers desire to revisit their HRO strategy without a lengthy commitment
• The appeal of multi-tenant Business-Process-as-a-Service (BPaaS) will increase
• A handful of large players dominate the MPHRO market
• The M&A and partnership environment continues to play out in the market