Market Analysis
published on Apr 17, 2014
Report Overview:
NelsonHall's market analysis of the multi-process HR outsourcing (MPHRO) industry and MPHRO trends consists of 106 pages.
Who is this Report for:
NelsonHall's "Targeting Multi-Process HR Outsourcing" (MPHRO) report is a comprehensive market assessment report designed for:
- Sourcing managers investigating sourcing developments within MPHRO
- Vendor marketing, sales and business managers developing strategies to target BPO service opportunities within the MPHRO market
- Financial analysts and investors specializing in the IT services and BPO sector, including MPHRO.
Scope of this Report:
The report analyzes the worldwide market for MPHRO and addresses the following questions:
- What is the market size and projected growth for the global MPHRO market by geography?
- What is the profile of activity in the global MPHRO market by industry sector?
- What are the top drivers for adoption of MPHRO by market segment?
- What are the benefits currently achieved by users of MPHRO by market segment?
- What factors are inhibiting user adoption of MPHRO services by market segment?
- What is the average contract length by market segment, and how is this changing?
- What pricing mechanisms are typically used within MPHRO, and how is this changing?
- What is the profile of activity in the global MPHRO by industry sector?
- Who are the leading MPHRO vendors globally and by geography?
- Who are the leading MPHRO vendors by market segment?
- What combination of services is typically provided within MPHRO contracts, and how is this changing?
- What is the current pattern of delivery location used for MPHRO services, and how is this changing?
- What technology developments have occurred in the last year within MPHRO, and how is this changing?
- What are the challenges and success factors within MPHRO?
Key Findings & Highlights:
The MPHRO market accounts for 5% of the global HRO market size, and has a healthy CAAGR through 2018. This report highlights current market sizing and growth estimates for each market segment within MPHRO, including:
- Multi-Country Standardization
- Client-Specific Shared Service Transformation
- Core Business Focus
- Technology-Led HR Service Enhancement.
While the Client-Specific Shared Service Transformation segment is the largest, the Multi-Country Standardization and Core Business Focus segments are growing the fastest. By geography, the U.S. is the largest MPHRO market in terms of revenue, but Latin America has the highest CAAGR.
Drivers for MPHRO vary by market segment. For example, growth for the Multi-Country Standardization segment is the result of large organizations needing to streamline operations with consistent processes and information across geographic boundaries, whereas growth for the Core Business Focus segment is the result of organizations focusing on their core competency to support growth.
Like the drivers, the challenges and success factors differ by segment. However, the most important success factor across all market segments is the ability to rollout standardized HR administration and payroll; this success factor is critical since the core MPHRO bundle purchased by the majority of clients is HR administration, payroll, and employee care. Benefits administration and recruitment are the most popular add-on services.
The main MPHRO service offering development in 2013 was launching a BPaaS offering combining MPHRO services with a SaaS platform. In the next 12 months, the main focus is on ramping up analytics offerings.
MPHRO technology developments in 2013 were focused on establishing new technology partnerships, mostly with cloud-based platforms such as Workday and SuccessFactors for Employee Central, and also launching or enhancing mobile capabilities. Delivery developments in 2013 were focused on opening new delivery centers, with Romania as the preferred location due to vast language capabilities and inexpensive labor.
In terms of vendor targeting, the report analyzes a variety of perspectives including:
- Multi-tower BPO contracts including MPHRO
- Market segmentation
- Mid versus large market
- Geographic regions
- Industries.