European HR Outsourcing Suppliers Taking Market Share from Big-Name US Providers, According to Everest Research Institute

The rising number of European companies offering Human Resources

Outsourcing (HRO) services with attractive service bundles and

competitive price points are stealing market share away from HRO

suppliers in the United States and elsewhere, according to an Everest

Research Institute study of the European HRO market. Since 2005, European HR outsourcing suppliers have gained 10

percent of the global market, currently hold 30 percent of it, and these

numbers will likely continue to increase to meet rising demand in a

market that hasn´t been significantly

penetrated, according to Institute analysts. The Institute will hold a Webinar

European HRO Market: A Laggard or an Emerging Frontier?, on May

14 at 9 a.m. CDT to present study findings and insights.
While the global market continues to grow at a decelerated rate (15

percent CAGR from 2006-2007 compared to 22 percent from 2003-2005) and

the overall number of transactions declined from 2006 to 2007, most of

the global transactions occurred in Europe, a strong indicator of buyer

maturity, according to Everest´s Pan-European

HRO Market report. Annual revenues for HRO transactions

originating in Europe reached almost US $750 million in 2007.
"Market penetration across all sectors is low;

therefore, we expect to see continued HRO growth in Europe as buyers

increasingly realize they must consider outsourcing to remain

competitive in a global world," said Monica

Barron, Vice President, Research, Everest Research Institute. "Buyers

are looking beyond cost savings and are very focused on effectively

managing cross-country talent. With the entry of new "Ëœpayroll-led´ and "Ëœoffshore-led´ multi-process HRO suppliers, buyers have more choices and are no longer

restricting themselves to "Ëœbrand shopping´ the big-name global suppliers."
Other highlights of the report include:

The United Kingdom continues to claim a large share of the HRO

European market in terms of deal origination and employees covered

holding 56 percent of all European transactions and 82 percent of

total contract value.

West Europe is an emerging market within Europe with different

sub-regions having different HRO potential.

Central and Eastern European locations have become an integral part of

supplier strategies to deliver HRO services in Europe, serving as HRO

hubs to support European operations.

Manufacturing, government, and telecom dominate European HRO buyer

industries.

The most transaction activity is with companies employing 15,000 or

more employees, and 55 percent of these engagements are global or

regional.

In terms of transaction activity, Accenture

ADP and Northgate

ARINSO signed 54 percent of them.

Accenture and ExcellerateHRO are the current market leaders based upon the Institute´s

data; however, buyers have more choices as existing suppliers

including Europe-centric Logica, Capita and Steria Xansa, solidify their

HRO offerings and offshore-led suppliers, including Caliber

Point, TCS

and Wipro, enter the HRO market.

The Institute´s Pan-European

HRO Market report provides comprehensive coverage of the

European HRO market including detailed analyses on market size and

trends, market segments, transaction characteristics, and supplier

landscape and delivery capabilities.
The 45-minute Webinar

followed by 15 minutes of questions and answers with participants, will

take place on May 14, 2008, at 9 a.m. CDT; 7:30 p.m. IST. To

register, please visit: www.everestresearchinstitute.com/Events/Webinars.
To read more about the findings of the report, an extract is available

at www.everestresearchinstitute.com.

To purchase the report or receive more information about other research

services, please e-mail info@everestresearchinstitute.com or call +1-214-451-3110.
About Everest Research Institute
Everest Research

Institute (www.everestresearchinstitute.com)

serves as a central source of independent and objective strategic

intelligence, analysis, and actionable insight for leading corporations

service providers, and investors in the global outsourcing and

offshoring marketplace. The Institute addresses both business process

and information technology sourcing topics, providing the global

outsourcing and offshoring community with information that empowers

highly productive, sustainable sourcing strategies and

relationships. The Institute´s

distinguished Board

of Advisors, senior

executives and thought leaders oversee the Institute´s

research agenda to ensure that it fully supports the business needs of

corporations, service providers and investors.
Everest Research Institute members receive access to unparalleled

analytical and advisory services, including access to Everest

analysts, in-depth reports on major outsourcing and offshoring topics, white

papers on market-shaping events, and Webinars designed to provide insight and information about important market

trends. The Institute´s wealth of knowledge

and experience provides members with unique perspectives into today´s

marketplace and the competitive edge required to take advantage of

emerging opportunities.
Everest Group is a global

operational strategy consulting firm with offices in such leading

business centers as Dallas; Gurgaon, India; London; Amsterdam; New York;

Toronto and Melbourne. An industry leader since 1991 when we created the

sourcing consulting category, Everest Group has earned a worldwide

reputation for ongoing innovation as we help clients achieve maximum

value from their operations, which includes sourcing strategy and

implementation. Everest created the Everest

Research Institute (www.everestresearchinstitute.com)

as the central source of industry information. Please visit www.everestgrp.com and www.everestresearchinstitute.com for more information.