Everest Predicts 6% Growth for HR Outsourcing this Year
by: Sarah Joson
Friday, June 15, 2012
Category: Outsourcing News
Factors that affected the industry’s marginal performance for 2010, and predominantly 2011, were smaller-sized contracts, fewer renewals, and dissolution of large deals. Meanwhile, the development and expansion of other deals contributed to the growth of the MPHRO market.
Other highlights of the report are:
- Multi-tenant Business-Process-as-a-Service (BPaaS) services are gaining traction.
- Asia-Pacific and Latin America are new regions are seen to further adopt MPHRO.
- Contract terminations will help provide pipelines for the market. Meanwhile, an increase in transfers and change of plans will be seen as providers become more versatile.
- Upcoming MPHRO deals will retain stable activity.
Rajesh Ranjan, Vice-president of Everest Group, said not many service providers are facing contract termination. More and more buyers are now focusing on their current operations and are eyeing expansion. He also noted that sourcing will widely affect spending related to HR.