Introduction

In the Human Resource Outsourcing (HRO) market, the larger employers, those in the over 15K active employees (>15K) segment, have received more media and supplier attention because of the higher total revenue associated with these bigger deals. However, lost in the hype of the bigger deals, there has also been a lot of activity in the 3K-15K active employees (3K-15K) segment. This research report compare and contrast the two buyer segments 3K-15K and >15K employees in terms of expectation of buyers, service delivery requirements, and supplier landscape. This research report will assist stakeholders in identifying opportunities in the under-penetrated but potentially attractive 3K-15K employee segment. 

Scope

• All human resources outsourcing contracts as of December, 2005 with a minimum of three HR functions and servicing more than 3,000 employees
• Global focus: North America, Europe, Asia Pacific, and Latin America
• All suppliers having signed at least one HRO transactions
• All industries
  

Contents

This research analyses the key characteristics of two key buyer segments: 3K-15K and >15K employees and examines the factors leading to profitability in these two segments. Further, it conducts a deep-dive in the 3K-15K employees segment to understand the outsourcing expectation of buyers and the service delivery requirements. It also identifies the key implications of the research findings for buyers and suppliers in these segments. Some of the findings in this report are:

• 3K-15K segment has the potential to be roughly comparable to the >15K segment in terms of potential revenue opportunity
• There is little overlap in competitors operating in the two segments
• There is a higher adoption of standardized one-to-many delivery models in the 3K-15K segment
• The 3K-15K market segment is even earlier in market maturity than the >15K employees segment