The Importance of Defining MPHRO by Market Segments

Amy L. Gurchensky, HRO Research Analyst, NelsonHall

Amy L. Gurchensky, HRO Research Analyst, NelsonHall

In NelsonHall’s last “Targeting Multi-Process HR Outsourcing” (MPHRO) market analysis report, I identified four unique market segments that MPHRO buyers fall within and their characteristics.  Namely:

  • Multi-Country Standardization
  • Shared Service Transformation
  • Core Business Focus
  • Technology-Led HR Service Enhancement.

In the latest report that is due to be published this month, I cover how these segments have evolved and take a closer look at contract activity in the last two years among each segment.

Some highlights include:

  • The average number of countries for all contracts in the “Multi-Country Standardization” and “Shared Service Transformation” segments versus the average number of countries for contracts within these segments signed since January 2011
  • Average employee headcount for each segment overall and for contracts signed after January 2011
  • Client drivers, benefits, and inhibitors by segment
  • Average contract length by market segment and the trend for contract durations by segment since January 2011
  • Pricing model trends within each segment
  • Market size and growth rates by market segment
  • Vendor revenues by segment.

To really understand the MPHRO market, distinctions by market segment need to be made since trends in one segment can incorrectly skew data.  For example, the average MPHRO contract length for all market segments combined is approximately six years.  However, durations by segment reveal that the Shared Service Transformation contracts average 8.1 years, while the other segments average somewhere between 4.8 and 5.5 years.

Stay tuned for more insights on the current shape of the MPHRO market.

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Explore posts in the same categories: MPHRO, MPHRO Market Segments, Multi-Process HR Outsourcing, nelsonhall

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