Things You Must Know Before Your HRO Contract Expires
18 Jun 2009
by
Rajesh Ranjan
Executive Summary
The early years of the 11-year-old multi-process HRO industry saw buyers making decisions on a limited set of industry data and insights, in a way reflecting the nascent nature of the industry. The industry has evolved and grown since then, with more than 260 buyers embracing HRO globally now. Through this evolution, HRO has gone through significant changes across key dimensions such as process scope, solutions, supplier landscape, and contract characteristics.
As the early HRO adopters approach their end of term (i.e., 18 to 36 months before the end-of-contract date), it is critical that they understand these changes. This will not only help them identify and capture value-creation opportunities but will also make them understand the potential risks resulting from these changes (e.g., reluctance of existing supplier to renew based on its changed business strategy). Knowing these sufficiently in advance is critical for buyers to take appropriate steps to expand the value and prevent any disruption in their business.
Buyers can identify the opportunities as well as potential risks by answering three key questions:
How has the market changed since the start of engagement?
How does the current engagement compare to the market?
How can buyers leverage their upcoming end-of-term event to expand the value?
This whitepaper answers the first question by highlighting structural changes in the HRO market along key dimensions of engagement review. It also illustrates potential implications of these changes for buyers nearing their end of term.
Note: this report is from 2012. See our most recent R2R research report.
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