Market Report: December 2013 Preview Deck

Topic: Managed Service Provider (MSP) Service

Provider Landscape with PEAK Matrix
TM
Assessment
2013
Copyright 2013, Everest Global, Inc.
EGR-2013-3-PD-1034
Copyright 2013, Everest Global, Inc.
EGR-2013-3-PD-1034
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Copyright 2013, Everest Global, Inc.
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Bac k gr ound and met hodol ogy of t he r esear c h
Background of the research
The global MSP is estimated to be US$60-65 billion based on managed spend and ~US$1.05 in terms of Net
Fee Income (NFI). Its landscape is characterized by the juxtaposition of traditional and emerging drivers which
are shaping the MSP market in a multitude of ways. To maintain a competitive edge in this evolving space,
service providers differentiate their offerings by specializing across various dimensions. However, only some
players have the capability to execute deals with both depth and breadth of scope.

In this research, we analyze the global MSP market across the following dimensions:
l Market overview and service provider landscape
l 2013 MSP PEAK Matrix
l Key insights into PEAK Matrix dimensions
l Key areas of differentiation and specialization

The scope and methodology of this report includes:
l Proprietary data collected from ~15 MSP providers
l MSP deals with a minimum of four core processes included and minimum contract term of two years
l Scope of hires includes temporary/contingent hires, SoW consultants, and independent contractors
l Everest Group defines MSP as the transfer of ownership of all or part of the management of an
organizations contingent/temporary staffing activities on an ongoing basis

Copyright 2013, Everest Global, Inc.
EGR-2013-3-PD-1034
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Tabl e of c ont ent s (page 1 of 2)
Background and methodology 5

Executive summary 8
l Summary of key messages 9
l Implications for key stakeholders 12

Section I: Market overview and service provider landscape 13
l Summary 14
l Market size 15
l Market dynamics 16
l Service provider landscape 18

Section II: 2013 MSP PEAK Matrix 19
l Summary 20
l 2013 MSP PEAK Matrix scoring methodology 21
l 2013 MSP PEAK Matrix 23
l Service provider assessment 24

Section III: Key insights into PEAK Matrix dimensions 27
l Summary 28
l Market success 29
l Delivery capability scale 30
l Delivery capability scope 31
Topic Page no.
Copyright 2013, Everest Global, Inc.
EGR-2013-3-PD-1034
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Tabl e of c ont ent s (page 2 of 2)
Section III: Key insights into PEAK Matrix dimensions (continued)
l Delivery capability technology 32
l Delivery capability delivery footprint 33

Section IV: Key areas of differentiation and specialization 34
l Summary 35
l Areas of differentiation and specialization 36
J ob category and family 37
Industry 39
Deal size 40
Multi-country MSP 41
Geographic reach 42
Global sourcing 44
Technology 45

Appendix 46
l Glossary of terms 48
l MSP research calendar 50
l References 51
Topic Page no.
Copyright 2013, Everest Global, Inc.
EGR-2013-3-PD-1034
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This report examines the global 2013 MSP service provider landscape and its impact on the MSP market. It
focuses on service provider position and growth in the MSP market, changing market dynamics and emerging
service provider trends, assessment of service provider delivery capabilities, and key MSP service provider
differentiators. It also identifies the key implications of the research findings for buyers and service providers.
MSP market and
growth

2013 MSP PEAK
Matrix

Over vi ew and abbr evi at ed summar y of k ey messages
(page 1 of 2)
l Everest Group PEAK Matrix categorizes MSP service providers into Leaders,
Major Contenders, and Emerging Players based on their market success and
overall MSP delivery capability
l We assessed service providers delivery capabilities along the following four
dimensions:
Scale
Scope
Technology capability
Delivery footprint
Some of the findings in this report, among others, are:
l The managed spend in the MSP market grew by 13 to 16% in 2012 to reach
US$60 to 65 billion
l The current market size, in terms of Net Fee Income (NFI), is ~US$1.05 billion
Copyright 2013, Everest Global, Inc.
EGR-2013-3-PD-1034
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Key insights into
PEAK Matrix
dimensions
Key areas of
differentiation and
specialization
l Key insights on comparing the top quartile performers and other performers on
delivery capability dimensions
Market success: The top quartile performers are massively ahead of their
peers in terms of market success, which leads to a domino effect contributing
to greater success
Delivery capability scope: Top quartile performers are masters of multiple
trades, across industries, job families, deal sizes, and geographies
l MSP providers differentiate through varying capabilities along multiple
dimensions job category and family, industry, deal size, multi-country MSP,
geographic reach, and global sourcing
Industry MSP providers generally have experience across multiple industries
with focused play around a couple of industries
Technology Pure-play and niche MSP providers have a stronger focus on
proprietary VMS technology

Over vi ew and abbr evi at ed summar y of k ey messages
(page 2 of 2)
Copyright 2013, Everest Global, Inc.
EGR-2013-3-PD-1034
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Others Top quartile
performers
Others Top quartile
performers
Thi s st udy of f er s f our di st i nc t c hapt er s pr ovi di ng a deep di ve
i nt o k ey aspec t s of t he MSP mar k et ; bel ow ar e f our c har t s t o
i l l ust r at e t he dept h of t he r epor t
Source: Everest Group (year)
2013 MSP PEAK Matrix Key insight into PEAK Matrix dimension scale
MSP provider capability large sized contracts
MSP provider capability proprietary VMS
High
Low
Low
High 25
t h
percentile
2
5
t
h

p
e
r
c
e
n
t
i
l
e

75
t h
percentile
7
5
t
h

p
e
r
c
e
n
t
i
l
e

M
a
r
k
e
t

s
u
c
c
e
s
s

Delivery capability
Leaders
Emerging Players
Major Contenders
Hudson RPO
Xchanging
AMN Healthcare
Capita Resourcing
Yoh
Superior Group
nextSource
Hays
ZeroChaos
Randstad
Sourceright
KellyOCG
Allegis Group Services
ManpowerGroup
Solutions TAPFIN
Average managed spend per provider
FTE
(denotes economies of scale)
US$ million
Average number of FTEs per provider
Number of FTEs
Large-sized deals Mega-sized deals
Market share by deal size
Number of deals
100% =
Service provider 1
Service provider 2
Service provider 3
Service provider 4
Service provider 5
Service provider 6
Service provider 7
Others

Service provider 1
Service provider 2
Service provider 3
Service provider 4
Service provider 5
Service provider 6
Service provider 7
Service provider 8
Service provider 9
Service provider 10
Service provider 11
Service provider 12
Service provider 13













Staffing-legacy
MSP providers
Pure-play
MSP providers
Other new
providers
Service providers
Proprietary
VMS?
Number of deployments of
proprietary VMS
Copyright 2013, Everest Global, Inc.
EGR-2013-3-PD-1034
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MSP pr ogr am r esear c h c al endar
Topic Release date
Published Current
December-2013 MSP Service Provider Landscape with PEAK Matrix
TM
Assessment 2013
October-2013 Managed Service Provider (MSP) Mastering the Winds of Change
Q1-2014 Managed Service Provider (MSP) Service Provider Compendium 2013
Q1-2014 Multi-country MSP: Market adoption, best practices and challenges
Q1-2014 The Rise of Procurement and HR Collaboration Effectively Managing HR-spend
Q3-2014 Managed Service Provider (MSP) Service Provider Landscape with PEAK Matrix 2014
Q3-2014 Managed Service Provider (MSP) Service Provider Compendium 2014
Q2-2014 Managed Service Provider (MSP) State of the Market 2014
Copyright 2013, Everest Global, Inc.
EGR-2013-3-PD-1034
10
Addi t i onal r esear c h r ec ommendat i ons
The following documents are recommended for additional insight into the topic covered in this research. The recommended
documents either provide additional details on the topic or complementary content that may be of interest

1. Managed Service Provider (MSP) Mastering the Winds of Change (EGR-2013-3-R-0958); 2013. Over the last few years, the
Managed Service Provider (MSP) market has experienced steady growth as well as concurrent elementary changes that are altering the
dynamics of the market. Not only are buyer expectation and drivers changing, but also the buyer profile. The service provider landscape
is also morphing, as is the operating model of the providers. This flux in MSP makes it imperative for buyers to understand what they can
derive from the offering in the market and for service providers to update/upgrade their service portfolio

1. RPO Annual Report 2013 Dichotomy of Market Exuberance and Subdued Economy (EGR-2013-3-R-0850); 2013. Recruitment
Process Outsourcing (RPO) continued its momentum in 2012 with record new deal signings. However, due to a decrease in hiring
volumes, the RPO market grew at a moderate rate of 12% to touch US$1.5 billion. This research provides comprehensive coverage of
the market across dimensions such as market overview, key business drivers, buyer adoption trends, transaction trends, and service
provider landscape. It also provides predictions for the 2013 RPO market

2. Rise of Blended RPO Addressing the Total Talent Acquisition Need (EGR-2011-3-R-0597); 2011. The "Rise of Blended RPO"
report provides insights into the value proposition of a total talent acquisition approach leveraging a blended RPO solution. It highlights
the drivers behind such an approach; provides an analysis of the benefits in terms of financial, business, and strategic impact; and
describes challenges and key considerations for adoption
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