Introduction

The end of term cycle (i.e. 18 to 36 months before the outsourcing contract expires) is a key event as it provides several opportunities to buyers, incumbent suppliers, as well as non-incumbent suppliers to align and potentially expand value creation. In the current multi-process HRO market, this event holds a great significance as more than 110 deals with a combined contract value of about US$ 6 billion are nearing their term end during 2010-12. Given the structural changes in the HRO market in the last few years, the way these deals evolve in their second generation will potentially shape the future of the market.

This report examines the end-of-term market in HRO and provides insights, analyses, and implications for stakeholders along four key dimensions: market overview, end-of-term market - what has happened to date, upcoming end-of-term deal characteristics, and changing market dynamics and future outlook. The report will help buyers understand the critical factors to consider as part of end-of-term decision making, benefit from understanding the decisions taken by other end-of-term buyers, and leverage the changes in the market to their advantage. It will help suppliers gain insight into the end-of-term market and understand the opportunities and the associated risks.

Scope

• Multi-process HRO deals (deals including at least three HR functions and covering more than 3,000 employees) that either have expired or will expire by the end of 2012
• Global focus: North America, Europe, Asia Pacific, and Latin America
• All industries

Contents

This research report provides a comprehensive coverage of the end-of-term HRO market and analyzes it across various dimensions such as market overview and key business drivers, end-of-term decisions, upcoming end-of-term deal characteristics, and changing market dynamics and future outlook. Some of the findings in this report, among others, are:

• Second generation HRO deals will likely involve significant restructuring and renegotiation as buyers consider a number of factors influencing the HRO market
• Buyers of HRO will need to understand how the HRO supplier landscape has evolved over the past several years in order to assess future alignment with both incumbent and new suppliers
• The emergence of new delivery models and solution approaches present HRO buyers and suppliers new options for driving increased value from HRO deals