Introduction

The global multi-process Human Resources Outsourcing (HRO) market witnessed significant shifts in buyer adoption trends in 2008. As a result, the supplier landscape is changing as well; while buyers have more supplier options than what were available before, it is also imperative for them to clearly understand suppliers’ current focus and their comparative capabilities across key dimensions.

In 2008, though the market slowed down considerably in terms of new deals signed, the number of active suppliers actually increased, with new suppliers entering the market to tap emerging opportunities created by the changes in the marketplace.Some existing suppliers have been swift to align with the changing environment and saw increased traction; other slower-to-react suppliers are finding it tough to survive, let alone succeed.With increased competition for fewer deals, it will be critical for suppliers to clearly define their target market and offerings.For buyers, it is more important than ever to identify and articulate their goals for outsourcing HR; in fact, in the current economy, most buyers will only consider componentized outsourcing of core HR processes in order to drive down HR costs.

The 2008 Global HRO Supplier Landscape research report provides actionable insights through in-depth analyses of shifts in the global HRO supplier landscape.It examines the key changes in buyer adoption, investigates the areas in which suppliers are looking to gain competitive advantage, and assesses supplier delivery capability across scale, scope, technology, and delivery footprint.

Scope

• All multi-process HRO deals as of July 31, 2008 with a minimum of three HR functions and servicing more than 3,000 employees
• Suppliers signing at least one multi-process HRO deal
• Global focus: North America, Europe, Asia Pacific, and Latin America
• All industries

Contents

The 2008 Global HRO Supplier Landscape includes analyses of the supplier landscape and HRO market; changing supplier dynamics and trends; supplier delivery capabilities; and implications for buyers and suppliers.Some findings in the report include:

• The HRO landscape continues to evolve and currently has over 15 suppliers
• Suppliers are refining their strategies to target the mid-market as well as the large market segments, although through separate offerings
• Supplier strategy for new deals varies by preferred geographic and process scope and HRO delivery model. Most suppliers have an offering for select processes in the single process market as well
• A majority of suppliers now leverage offshoring, although the extent of usage varies by supplier
• There are clear differences among suppliers on an overall HRO delivery capability across scale, scope, technology capability, and geographic delivery footprint