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.
