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MPHRO - Service Provider Landscape With PEAK Matrix Assessment 2016
MPHRO - Service Provider Landscape With PEAK Matrix Assessment 2016
MPHRO - Service Provider Landscape With PEAK Matrix Assessment 2016
EGR-2016-3-R-1831
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Appendix 46
Glossary of key terms 47
HRO research calendar 49
References 50
In this research, we analyze the MPHRO service provider landscape across various dimensions:
Everest Group PEAK Matrix for MPHRO 2016 and Star Performers 2016
Everest Group’s remarks on service providers
Key insights on PEAK Matrix dimensions
1
Everest Group’s proprietary database of 625+ MPHRO deals (updated Service providers covered in the analysis1
annually)
The database tracks the following elements of each MPHRO deal
– Buyer details including industry, location, and signing region
– Deal details including TCV, ACV, contract term, start date, buyer
employees served, and primary pricing structure
– Scope: Process coverage and geographic coverage (employees
covered by each region)
– Technology ownership and maintenance
– Global sourcing
2
Everest Group’s proprietary database of operational capability of 20+
MPHRO service providers (updated annually)
The database tracks the following capability elements for each service
provider
– Major MPHRO clients and recent wins
– Overall MPHRO revenue, total clients, and buyer employees served
– Recent HRO-related developments (investments and partnerships)
– MPHRO delivery locations and level of offshoring
– Technology offerings within MPHRO
– MPHRO service suite
1 Assessment for MHR excludes service provider inputs on this particular study, and is based on Everest Group’s estimates which leverage Everest Group’s
proprietary Transaction Intelligence (TI) database, ongoing coverage, the service provider’s public disclosures, and interaction with buyers
2 The data on Hewlett Packard Enterprise (HPE) was collected before its merger with CSC
Confidentiality: Everest Group takes its confidentiality pledge very seriously. Any contract-specific information collected, will only be presented back to the industry in an
aggregated fashion
3
Buyer surveys and interactions
Global surveys and one-on-one executive-level interviews of buyers are undertaken to understand how
organizations perceive performance of their MPHRO provider. The surveys/interviews focus on different aspects of
an outsourcing relationship including:
Key drivers for outsourcing MPHRO
Contract details (including process scope, signing year, and duration)
Overall performance of the service provider including key strengths and improvement areas
Detailed assessment of service provider performance across elements such as:
– Key MPHRO metrics
– HR processes
– Implementation and transition phases
– Governance and relationship management
Strategy
Judgment-intensive
Transaction-intensive
HR
MPHRO SPHRO
strategy
Outsourcing of multiple HR Outsourcing of single stand-
Employee relations
processes to one service alone HR process
provider in an integrated way Regulatory and compliance Major SPHRO markets are:
Global mobility – Payroll outsourcing
Performance & succession – Recruitment Process
Learning Outsourcing (RPO)
Recruitment – Learning Services
Compensation Outsourcing (LSO)
Benefits – Benefits Administration
Outsourcing (BAO)
Payroll
Employee data management
HR information systems and reporting
Employee contact center
Appendix
75th percentile
NGA Human
NGA Human Resources (NGA) Resources
– Major Contenders: Ascender, Capita,
Market success
Xerox
25th percentile
– Aspirants: MHR and OneSource Virtual Ascender
Capita Wipro
Neeyamo TCS
Based on the relative Year-on-Year (YOY) Infosys
OneSource Virtual
movement of service providers on the PEAK Hexaware
Matrix, Everest Group identified four service MHR WNS
providers as the “2016 MPHRO Market Star
Low Aspirants
Performers” – Accenture, Hexaware, IBM,
and Zalaris Low 25th percentile High
Delivery capability
(Scale, scope, technology solutions and innovation, delivery footprint, and buyer satisfaction)
Appendix
Everest Group classifies 20 MPHRO service providers on the Everest Group Performance | Experience |
Ability | Knowledge (PEAK) Matrix into the three categories of Leaders, Major Contenders, and Aspirants
The PEAK Matrix is a framework to assess the market success and delivery capability of service providers
Based on the 2016 MPHRO PEAK Matrix, segmentation of service providers is as follows (in alphabetical
order within each category):
– Leaders: Accenture, ADP, Aon Hewitt, IBM, and NGA Human Resources
– Major Contenders: Ascender, Capgemini, Capita, CGI, Hexaware, HPE, Infosys, Neeyamo, TCS,
Wipro, WNS, Xerox, and Zalaris
– Aspirants: MHR and OneSource Virtual
Based on the relative Year-on-Year (YOY) movement of different service providers on the PEAK Matrix,
Everest Group identified four service providers as the “2016 MPHRO Market Star Performers” – Accenture,
Hexaware, IBM, and Zalaris
75th percentile
Major Contenders across market success
and delivery capability
2nd or 3rd quartile
performance across market
Market success2
(Revenue, growth,
Aspirants
4th quartile performance
across market success
and delivery capability
Low
Low 25th percentile High
MPHRO delivery capability
(Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)
1 Service providers scored using Everest Group’s proprietary scoring methodology on the next page
2 Based on a combination of MPHRO revenue, number of active clients, number of new deals signed, and year-on-year growth of MPHRO revenue
Source: Everest Group (2016)
Leaders
Market success
Measures success achieved in the Major Contenders
MPHRO market. Captured through
MPHRO revenue, number of active
clients, number of new deals signed,
and year-on-year growth of MPHRO
revenue
Aspirants
Technology solutions
Scale Scope Delivery footprint Buyer satisfaction
and innovation
Measures the scale of Measures the scope of Measures technology Measures the delivery Measures the satisfaction
operations based on services provided based on capability and innovation on footprint based on levels2 of buyers across
Overall company distribution of the basis of Number of delivery Business driver
revenue Processes Technology model centers across the seven Process expertise
Percentage contribution ACV in geographies employed major regions1 Implementation
of MPHRO revenue to Coverage of HR platform experience Balance of the shoring Technology and
the overall company geographies Innovation in Cloud, mix innovation
revenue Industries BPaaS, social, mobility, Relationship
Buyer size analytics, and robotic management
automation Overall satisfaction
1 North America, Latin America, Western Europe, EEMEA (Eastern Europe, Middle East, and Africa), India, China, and the rest of Asia Pacific
2 Measured through responses from three referenced buyers for each service provider
Year 1
success, we evaluate the performance of each
Service service provider on the PEAK Matrix across a
provider number of parameters including:
Year 0 Yearly ACV growth
Number of new contract signings
Value of new contract signings
Delivery capability
2016 MPHRO Star
Delivery capability dimension The top quartile performers on each of the Performers
In order to assess advancements on specified parameters are identified and the “Star
capability, we evaluate the performance of Performer” rating is awarded to the service
each service provider on the PEAK Matrix providers with
across a number of parameters including: The maximum number of top quartile
Annual growth in scale performances across all of the above
Increase in scope of services parameters, and
Expansion of delivery footprint At least one area of top quartile performance
Increase in technology leverage and advancement in either dimensions of market
investment in innovation success or delivery capability
The “Star Performers” title relates to YOY performance for a given service provider and does not
reflect the overall market leadership position. Those identified as “Star Performers” may include
“Leaders”, “Major Contenders”, or “Aspirants”.
Capgemini and OneSource Virtual are not considered for Star Performer analysis due to non-participation in the PEAK Matrix analysis in 2015
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for MPHRO
Leaders
75th percentile Major Contenders
(Revenue, growth, and number of active clients and new deals)
Aspirants
High Leaders Star Performers
Aon Accenture
Hewitt
Major Contenders
ADP IBM
75th percentile
NGA
Human Resources
Market success
Xerox
HPE Capgemini
Zalaris
CGI
25th percentile
Ascender
Wipro
Capita
Neeyamo TCS
OneSource Virtual
Infosys
Hexaware
MHR WNS
Low Aspirants
Low 25th percentile High
Delivery capability
(Scale, scope, technology solutions and innovation, delivery footprint, and buyer satisfaction)
Delivery capability
Technology
Service solutions and Delivery Buyer Market
provider Scale Scope innovation footprint satisfaction3 Overall success
Accenture
ADP
Aon Hewitt
IBM
NGA Human
Resources
1 Service providers scored using Everest Group’s proprietary scoring methodology given on page 15
2 For a detailed profile of each service provider, refer to the upcoming report - MPHRO Service Provider Compendium 2016
3 Buyer satisfaction score and overall PEAK Matrix positioning adversely impacted for those service providers who provided inadequate number of buyer references
Delivery capability
Technology
Service solutions and Delivery Buyer Market
provider Scale Scope innovation footprint satisfaction3 Overall success
Ascender
Capgemini
Capita
CGI
Hexaware
HPE
Infosys
1 Service providers scored using Everest Group’s proprietary scoring methodology given on page 15
2 For a detailed profile of each service provider, refer to the upcoming report - MPHRO Service Provider Compendium 2016
3 Buyer satisfaction score and overall PEAK Matrix positioning adversely impacted for those service providers who provided inadequate number of buyer references
Delivery capability
Technology
Service solutions and Delivery Buyer Market
provider Scale Scope innovation footprint satisfaction3 Overall success
Neeyamo
TCS
Wipro
WNS
Xerox
Zalaris
1 Service providers scored using Everest Group’s proprietary scoring methodology given on page 15
2 For a detailed profile of each service provider, refer to the upcoming report - MPHRO Service Provider Compendium 2016
3 Buyer satisfaction score and overall PEAK Matrix positioning adversely impacted for those service providers who provided inadequate number of buyer references
Delivery capability
Technology
Service solutions and Delivery Buyer Market
provider Scale Scope innovation footprint satisfaction3 Overall success
MHR
OneSource
Virtual
MHR and OneSource Virtual are niche players with major focus on United Kingdom and North America, respectively. The
narrow geographic scope is a major reason for them being declared as Aspirants on the MPHRO PEAK Matrix.
1 Service providers scored using Everest Group’s proprietary scoring methodology given on page 15
2 For a detailed profile of each service provider, refer to the upcoming report - MPHRO Service Provider Compendium 2016
3 Buyer satisfaction score and overall PEAK Matrix positioning adversely impacted for those service providers who provided inadequate number of buyer references
It has been able to sign a healthy It has strengthened its cloud and mobility
number of new deals totalling eight, credentials by acquiring Cloud Sherpas and
maintaining its position as one of the Solium
dominant players in the MPHRO It has bolstered its analytics capabilities not
market only through organic investments but also
through acquisitions such as i4C analytics
It has signed a healthy number of large It continues to invest in its proprietary Watson
new deals with complex process and technology and the Kenexa acquisition
geographic scope strengthening its It recently acquired Meteorix, a leading
position among Leaders Workday services partner to further strengthen
The new deals signed were much its Workday capabilities
larger than the ones signed in 2014 It has also seen increased adoption of its
mobility solutions
Appendix
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Note: The data used for this analysis was collected before the HPE-CSC merger
Source: Everest Group (2016)
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Delivery capability
Technology and Delivery Buyer
Scale Scope innovation footprint satisfaction Overall Market success
Executive summary
Appendix
– Glossary of key terms
– HRO research calendar
– References
Term Definition
ACV Annualized Contract Value is calculated by dividing the Total Contract Value (TCV) by the term of the contract
Augmented model Service provider provides “add-on” tools to address specific gaps
Buyer The company/entity that purchases outsourcing services from a provider of such services
ERP An Enterprise Resource Planning software package integrates the functions of an enterprise to enable optimal
operations. These packages have functions for human resources, finance & accounting, purchasing, production
planning and scheduling, etc.
FTEs Full-time employees
Global buyers Buyers with operations and employees in multiple continents
Global deal Global deal refers to an RPO deal where delivery occurs in multiple continents
HRIS HR Information Systems are systems that enable a company to track employees and employee-related information
(e.g., name, contact information, department, and salary). HRIS includes reporting capabilities and some systems
that are interfaced to payroll or other financial systems
HRO Human Resources Outsourcing is the transfer of ownership of some or all human resource processes or functions to
a service provider. This could include administrative, delivery, or management-related processes or functions. HRO
deals include a minimum of three HR functions (e.g., payroll, benefits, and HRIS) covering 3,000 or more employees
LOA Leave of absence refers to an extended period of time during which an employee is out of the workplace (and the
employee’s related entitlements during that period)
Term Definition
Local buyers Buyers with operations and employees in only a single country
MPHRO Multi-process HRO includes the transfer of a minimum of three HR functions (e.g., payroll, benefits, and HRIS)
covering 3,000 or more employees to a service provider
Platform model Pre-configured applications owned by the service provider, pricing built into the contract
PO Procurement Outsourcing is the transfer of ownership of some or all procurement processes or functions to a service
provider. This could include administrative, delivery, or management-related processes or functions
Regional buyers Buyers with operations and employees in a single continent
RPO Recruitment Process Outsourcing
SaaS Software-as-a-Service is a software that is deployed on Internet and/or is run behind a firewall in the local area
network or personal computer
Service provider A company/entity that supplies outsourcing services to another company/entity
SPHRO Single-process HRO. It includes the transfer of a single process or individual HR processes or functions
(e.g., benefits, compensation) to a service provider
Talent management Talent management includes recruiting, compensation, learning, and performance management
TCO Total Cost of Ownership
TCV Total Contract Value is the potential revenue associated with the transaction, and estimated at the commencement of
the contract (e.g., sum total of revenue accrued to the service provider from the transaction over the entire
transaction term, usually measured in millions of dollars)
Tie-and-run model Service provider plugs into buyer’s existing systems to deliver services
Published Current
Analytics Business Process Services (BPS) – Analytics Goes Mainstream – Scope Expands Beyond
Traditional Clients and Offerings April 2016
Multi-Country Payroll Outsourcing (MCPO): A Must-check Buffet for MNCs in Asia Pacific April 2016
Robotic Process Automation in HR Outsourcing: Not the Same as Other Business Process Service Lines April 2016
Heralding a New Era of Transformative Business Process Services through Technology April 2016
Benefits Administration Outsourcing (BAO) – Service Provider Landscape with PEAK Matrix™ Assessment 2016 June 2016
Global HR Trends Handbook 2016 - Innovation, technology, outsourcing, and vendors Q4 2016
The following documents are recommended for additional insight into the topic covered in this report. The recommended documents provide
either additional details on the topic or complementary content that may be of interest:
1. Analytics Business Process Services (BPS) – Service Provider Landscape with PEAK Matrix™ Assessment 2016 (EGR-2016-10-R-1751);
2016. This study assesses the analytics business process capabilities of different service providers (legacy BPO providers and analytics specialists)
and evaluates their positioning on the Everest Group PEAK Matrix. It focuses on service provider position & growth in the market, changing market
dynamics & emerging service provider trends, and assessment of service provider delivery capabilities
2. Multi-Country Payroll Outsourcing (MCPO): A Must-check Buffet for MNCs in Asia Pacific (EGR-2016-3-R-1725); 2016. In this report, we look at
the maturation of MCPO – globally and within the Asia Pacific region – offering details regarding the circumstances driving growth and development. In
particular, we look at challenges enterprises in Asia Pacific face in implementing MCPO and specific steps organizations can take to create successful
MCPO outcomes in Asia Pacific
3. Multi-Process Human Resources Outsourcing (MPHRO) – Service Provider Profile Compendium 2015 (EGR-2015-3-R-1669); 2015. The
objective of this compendium is to provide key stakeholders a snapshot of the offerings and capabilities of the 20 major MPHRO service providers.
While service providers will be able to benchmark their areas of strength and those of development vis-à-vis other service providers in the marketplace,
buyers and potential buyers of MPHRO will be able to assess service providers on their desired set of capabilities
For more information on this and other researches published by Everest Group, please contact us:
Everest Group is a consulting and research firm focused on strategic IT, business
services, and sourcing. We are trusted advisors to senior executives of leading
enterprises, providers, and investors. Our firm helps clients improve operational
and financial performance through a hands-on process that supports them in
making well-informed decisions that deliver high-impact results and achieve
sustained value. Our insight and guidance empowers clients to improve
organizational efficiency, effectiveness, agility, and responsiveness. What sets
Everest Group apart is the integration of deep sourcing knowledge, problem-
solving skills and original research. Details and in-depth content are available at
www.everestgrp.com and research.everestgrp.com.
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