Preview Deck | Multi-process Human Resources Outsourcing (MPHRO) Annual Report 2012
Upcoming SlideShare
Loading in...5
×
 

Preview Deck | Multi-process Human Resources Outsourcing (MPHRO) Annual Report 2012

on

  • 1,249 views

The Multi-process Human Resource Outsourcing (MPHRO) grew by a modest 2% to reach an annualized spend of US$3.12 billion in 2011. This report provides a comprehensive coverage of the MPHRO market and ...

The Multi-process Human Resource Outsourcing (MPHRO) grew by a modest 2% to reach an annualized spend of US$3.12 billion in 2011. This report provides a comprehensive coverage of the MPHRO market and analyzes it across various dimensions such as market overview and key dynamics, buyer adoption and solution trends, and service provider landscape. It also provides predictions for the 2012 MPHRO market.

Statistics

Views

Total Views
1,249
Views on SlideShare
1,249
Embed Views
0

Actions

Likes
0
Downloads
23
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Preview Deck | Multi-process Human Resources Outsourcing (MPHRO) Annual Report 2012 Preview Deck | Multi-process Human Resources Outsourcing (MPHRO) Annual Report 2012 Presentation Transcript

  • Topic: Multi-process Human ResourcesOutsourcing (MPHRO) – Continued ReinventionHuman Resources Outsourcing (HRO)Annual Report – June 2012 – Preview Deck Copyright © 2012, Everest Global, Inc. EGR-2012-3-PD-0698
  • Our research offerings for global servicesSubscription information Market Vista The full report is included in Global services tracking across functions, sourcing models, locations, and the following subscription(s) service providers – industry tracking reports also available – Human resources Banking, financial Healthcare Finance & accounting In addition to published services, insurance research, a subscription may include analyst inquiry, data Information cuts, and other services Procurement Cloud Vista technology If you want to learn whether your organization has a Human resources Recruitment process Global sourcing subscription agreement or request information on pricing and subscription options, Service provider Transaction PricePoint please contact us: Intelligence Intelligence – info@everestgrp.com – +1-214-451-3110 Custom research capabilities  Benchmarking | Pricing, delivery model, skill portfolio  Peer analysis | Scope, sourcing models, locations  Locations | Cost, skills, sustainability, portfolio  Tracking services | Service providers, locations, risk  Other | Market intelligence, service provider capabilities, technologies Copyright © 2012, Everest Global, Inc. 2 EGR-2012-3-PD-0698
  • Table of contents (page 1 of 3)Topic Page no.Section I: Introduction and Overview 7 Everest Group overview 8 HRO definition 10Section II: Key Insights 13 Market overview and key dynamics 14 Buyer adoption and solution trends 15 Service provider landscape 16Section III: Market overview and key dynamics 17 Summary 18 MPHRO deal activity 19 HRO and MPHRO market size 20 Factors affecting MPHRO deal size 22 – New deals 22  Process scope 23  Geographic scope 24  Employee scope 25  Buyer geography 26  Delivery model 27  HRO model 28 – Renewals and transfers 30 – Terminations 31 Deal renewal activity 32 Copyright © 2012, Everest Global, Inc. 3 EGR-2012-3-PD-0698
  • Table of contents (page 2 of 3)Topic Page no.Section IV: Buyer adoption and solution trends 33 Summary 34 Analysis dimensions 35 – Industry 36 – Buyer size 37 – Process scope 38 – Term length 39 – Technology 40 – Mobility and self service 41 – Global sourcing 46 – HRO management 49Section V: Service provider landscape 50 Summary 51 MPHRO service provider landscape 52 Service provider share analysis 53 Service provider market share by geography 55 Acquisition-and partnership-related developments 56 Key drivers for acquisitions 57Section VI: Outlook for 2012 59 Market overview and growth 60 Buyer adoption and solution trends 60 Service provider landscape 61 Copyright © 2012, Everest Global, Inc. 4 EGR-2012-3-PD-0698
  • Table of contents (page 3 of 3)Topic Page no.Appendix 62 Glossary of terms 63 HRO research calendar 66 References 70 Copyright © 2012, Everest Global, Inc. 5 EGR-2012-3-PD-0698
  • Everest Group’s HRO research is based on multiple sources ofproprietary information 1 Service providers covered in detail  Everest Group’s proprietary database of over 400 MPHRO deals (updated annually)  The database tracks the following elements of each MPHRO deal in the analyses – Buyer details: Including industry, location, and signing region – Deal details: Including TCV, ACV, term, start date, buyer employees served, and primary pricing structure – Scope: Process coverage and geographic coverage (employees covered by each region) – Technology ownership and maintenance – Global sourcing 2  Everest Group’s proprietary database of operational capability of over 20 MPHRO service providers (updated annually)  The database tracks the following capability elements for each service provider – Major MPHRO clients and recent wins – Overall MPHRO revenues, total clients, and buyer employees served – Recent HRO-related developments (investments and partnerships) – HRO delivery locations and level of offshoring – Technology offerings within HRO – HRO service suite 3  Ongoing buyer surveys and interactions – Vertical Industry Strategies in Shared Services & Outsourcing (VISSSO): Q1 2012  Global survey conducted in collaboration with Shared Services Outsourcing Network (SSON)  Analyzed horizontal functions, such as HR, as well as industry-specific functions across 25+ industries  Over 85 enterprise responses for human resources  For more details on survey and methodology, refer to the VISSSO summary report The analyses in this report are presented at two levels  Overall market analysis that highlights the overall market composition/dynamics  The current market trends based on deal activities up to November 2011 The sample size varies for different analyses based on the deal detail availabilityConfidentiality: Everest Group takes its confidentiality pledge very seriously. Any contract-specific information collected is only presented back to the industry in an aggregated fashion Copyright © 2012, Everest Global, Inc. 6 EGR-2012-3-PD-0698
  • Overview and abbreviated summary of key messagesThis report examines the changing dynamics of the global MPHRO market and the service provider landscape. It givesan overview of the market size, buyer adoption and solution trends, and the service provider landscape, highlightingthe key developments in 2011 and changing service provider dynamics. It also predicts the Everest Group outlook forthe MPHRO market in 2012.Some of the findings in this report, among others, are:1 Market overview  While the overall HRO market is growing at a healthy rate, the MPHRO grew by a and key dynamics 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 terminations2 Buyer adoption  Transaction-intensive processes are core but talent management components are and solution increasingly considered trends  Buyers desire to revisit their HRO strategy without a lengthy commitment  The appeal of multi-tenant Business-Process-as-a-Service (BPaaS) will increase3 Service provider  A handful of large players dominate the MPHRO market landscape  The M&A and partnership environment continues to play out in the market Copyright © 2012, Everest Global, Inc. 7 EGR-2012-3-PD-0698
  • This study offers three distinct chapters providing a deep diveinto key aspects of the MPHRO market; below are four chartsto illustrate the depth of the reportMPHRO ACV 2010-11 Factors affecting the size of new deals x% x% x% C x% Factors A F increasing B Factors deal size D decreasing E deal size 2010 ACV New deals Renewal/ Terminations / 2011 ACV transfers non-renewalsBuyer adoption by size Service provider market share distributionGrowth of MPHRO deals within the different buyer Share of HRO deal signings by buyer size 100% =segments Number of dealsNumber of deals 100% = employees segment employees segment Service provider I40 Large Service provider H Service provider G market Service provider F30 8% Service provider E 34% 10%20 12% Mid- Service provider D 6% market Service provider C 7% 12%10 Service provider B 10% 19% Service provider A 9% 0 Cumulative 2011 200020012002200320042005200620072008200920102011 through 2010 Active deals Active ACVSource: Everest Group (2012) Copyright © 2012, Everest Global, Inc. 8 EGR-2012-3-PD-0698
  • HRO research agenda (page 1 of 4) Published Current UpcomingTopic Goals of the research Release dateADPs Acquisition of The This breaking viewpoint document analyses the recent acquisition October-2011RightThing: Did ADP Do announcement by ADP of The RightThingthe Right Thing?Benefits Administration In this research study, we analyze the fast-changing global BAO service November-2011Outsourcing (BAO) – provider landscape and its impact on the BAO market. We focus on serviceService Provider provider positioning and market shares, delivery capability assessment, andLandscape and modes of differentiationCapability Assessment2012 Market Predictions Everest Groups analysts have released their complimentary 2102 predictions December-2011 for key outsourcing and offshoring marketsBenefits Administration The report provides accurate, comprehensive, fact-based snapshots of 10+ January-2012Outsourcing (BAO) leading BAO service providers. Each profile highlights service provider’sService Provider Profile delivery capability, market strategy, key organizational developments, andCompendium delivery footprint Copyright © 2012, Everest Global, Inc. 9 EGR-2012-3-PD-0698
  • HRO research agenda (page 2 of 4) Published Current UpcomingTopic Goals of the research Release dateAchieving Best-in-Class As Business Process Outsourcing (BPO) matures, companies and service February-2012BPO – Secrets Unveiled providers must look for the next source of value – labor arbitrage is important, but not sufficient. In particular, the industry is seeking to create value propositions that achieve cost savings while also delivering other sources of value. The results show a vivid difference in the approach and mindset of best-in-classIs BPaaS the Model for This research aims to compare Total Cost of Ownership (TCO) of Business- April-2012You? Process-as-a-Service (BPaaS) solutions with traditional BPO using a comprehensive financial model and create a comprehensive framework to evaluate BPaaS sourcingHRO Annual Report: Provides a comprehensive coverage of the 2011-12 multi-process HRO June-2012The MPHRO Market – market including market size and buyer adoption, emerging solutions andContinued Reinvention best practices, changing transaction characteristics and evolving service provider landscapeGlobal HRO Service In this research study, we analyze the global 2011-12 HRO service provider Q2-2012Provider Landscape landscape and its impact on the HRO market. We focus on service provider positioning and market shares, delivery capability assessment, and modes of differentiation Copyright © 2012, Everest Global, Inc. 10 EGR-2012-3-PD-0698
  • HRO research agenda (page 3 of 4) Published Current UpcomingTopic Goals of the research Release dateHRO Service Provider Profiles 15+ established HRO service providers across various dimensions Q2-2012Profile Compendium including FTEs strength, key delivery locations, HRO service suite, market positioning, overall HRO delivery capability assessment, and Everest Group perspective on service providerMulti-country Payroll: With several organizations still trying to solve the conundrum of multi-country Q3-2012Driving Standardization payroll centralization and standardization, the study provides aand Best Practices comprehensive coverage of the 2011-12 multi-country payroll marketGlobally including market size and buyer adoption, emerging solutions, changing transaction characteristics and evolving service provider landscapeMulti-country Payroll The report provides accurate, comprehensive, fact-based snapshots of Q3-2012Service Provider leading service providers in the multi-country payroll outsourcingCompendium marketplace. The report also offers insights into the multi-country payroll outsourcing service provider landscape, types of technology offerings and country coverage capability of multi-country payroll service providersBenefits Administration Provide a comprehensive coverage of the 2012 BAO market including market Q3-2012Outsourcing (BAO) size and buyer adoption, emerging solutions, changing transactionAnnual Report characteristics and evolving service provider landscape Copyright © 2012, Everest Global, Inc. 11 EGR-2012-3-PD-0698
  • HRO research agenda (page 4 of 4) Published Current UpcomingTopic Goals of the research Release dateBenefits Administration The report provides accurate, comprehensive, fact-based snapshots of 10+ Q4-2012Outsourcing (BAO) leading BAO service providers. Each profile highlights service provider’sService Provider Profile delivery capability, market strategy, key organizational developments, andCompendium delivery footprintBenefits Administration In this research study, we analyze the fast-changing global BAO service Q4-2012Outsourcing (BAO) provider landscape and its impact on the BAO market. We focus on serviceService Provider provider positioning and market shares, delivery capability assessment, andLandscape modes of differentiation Copyright © 2012, Everest Global, Inc. 12 EGR-2012-3-PD-0698
  • Additional HRO research recommendationsThe following documents are recommended for additional insight into the topic covered in this report. The recommended documents eitherprovide additional details on the topic or complementary content that may be of interest1. Is BPaaS the Model for You? (ERI-2012-10-R-0667); 2012. This research aims to compare Total Cost of Ownership (TCO) of Business-Process-as- a-Service (BPaaS) solutions with traditional BPO using a comprehensive financial model and create a comprehensive framework to evaluate BPaaS sourcing2. Benefits Administration Outsourcing (BAO) Service Provider Landscape and Capability Assessment (EGR-2011-3-R-0620); 2011. This research gives an overview of the BAO market and the service providers, analyzes the key upcoming trends – their reasons and implications, evaluates market shares and provides an assessment of delivery capabilities of 10+ BAO service providers. Based on Everest Group’s comprehensive evaluation framework, PEAK Matrix, the 11 service providers evaluated are segmented into the categories of Leaders, Major Contenders, and Emerging Players3. Benefits Administration Outsourcing (BAO) Annual Report 2011 – Mature yet Dynamic (EGR-2011-3-R-0598); 2011. This research provides a comprehensive coverage of the BAO market and analyzes it across various dimensions such as market overview and key business drivers, buyer adoption trends, transaction characteristics, and service provider landscape. It also identifies key implications of the research findings for buyers as well as for service providers4. ADP acquires The RightThing – Breaking Viewpoint (EGR-2011-3-V-0605); 2011. This document provides Everest Group’s viewpoint on the recent acquisition of The RightThing by ADP For more information on this and other researches published by Everest Group, please contact us: Katrina Menzigian, Vice President: katrina.menzigian@everestgrp.com Rajesh Ranjan, Vice President: rajesh.ranjan@everestgrp.com Arkadev Basak, Senior Analyst: arkadev.basak@everestgrp.com Shruti Agrawal, Analyst: shruti.agrawal@everestgrp.com Everest Group Two Galleria Tower 13455 Noel Road, Suite 2100 Phone: +1-214-451-3110 Dallas, TX 75240 Email: info@everestgrp.com Copyright © 2012, Everest Global, Inc. 13 EGR-2012-3-PD-0698
  • About Everest GroupEverest Group is an advisor to business leaders on the next generation of global services with aworldwide reputation for helping Global 1000 firms dramatically improve their performance byoptimizing their back-and middle-office business services. With a fact-based approach drivingoutcomes, Everest Group counsels organizations with complex challenges related to the useand delivery of global services in their pursuits to balance short-term needs with long-termgoals. Through its practical consulting, original research, and industry resource services,Everest Group helps clients maximize value from delivery strategies, talent and sourcingmodels, technologies, and management approaches. Established in 1991, Everest Groupserves users of global services, providers of services, country organizations, and private equityfirms in six continents across all industry categories. For more information, please visitwww.everestgrp.com and research.everestgrp.com. Copyright © 2012, Everest Global, Inc. 14 EGR-2012-3-PD-0698
  • Everest GroupLeading clients from insight to actionEverest Group locations Dallas (Headquarters): info@everestgrp.com +1-214-451-3000 New York: info@everestgrp.com +1-646-805-4000 Toronto: canada@everestgrp.com +1-416-865-2033 London: unitedkingdom@everestgrp.com +44-207-887-1483 Delhi: india@everestgrp.com +91-124-496-1000 www.everestgrp.com | research.everestgrp.com | www.sherpasinblueshirts.com Copyright © 2012, Everest Global, Inc. 15 EGR-2012-3-PD-0698