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The Importance of Defining MPHRO by Market Segments

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In NelsonHall’s last “Targeting Multi-Process HR Outsourcing” (MPHRO) market analysis, I identified four  market segments that MPHRO buyers fall within, namely:

  • Multi-Country Standardization
  • Shared Service Transformation
  • Core Business Focus
  • Technology-Led HR Service Enhancement.

In my next report, due to be published this month, I look at how these segments have evolved and review contract activity over the last two years in each segment.

Aspects of this forthcoming market assessment include:

  • Client drivers, benefits, and inhibitors by segment
  • Market size and growth rates by market segment
  • Vendor revenues by segment
  • Average employee headcount for each segment overall and for contracts signed since January 2011
  • Average contract length by market segment and the trend for contract durations by segment since January 2011
  • Pricing model trends within each segment.

To really understand the MPHRO market, distinctions by market segment need to be made since trends in one segment can incorrectly skew data.  To take one example, there is considerable variation in average MPHRO contract length across the segments.

Stay tuned for NelsonHall insights on the current shape of the MPHRO market.

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