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Vendor Assessment of the Comprehensive Human Resource Business Process Outsourcing Market
(July 25, 2011) There is a new IDC MarketScape Provides a Vendor Assessment of the Comprehensive Human Resource Business Process Outsourcing Market in 2011
International Data Corporation (IDC) has published a new vendor assessment profiling the leading providers in the worldwide human resources (HR) business process outsourcing (BPO) market. The IDC MarketScape report utilizes a rigorous scoring methodology that produces a definitive assessment of each vendor's current market capabilities and strategies for competing in the future. IDC placed four vendors - ADP, Accenture, IBM, and NorthgateArinso - in the "Leaders" category for 2011.
"The vendors covered in this analysis generally all provide mature service offerings with similar strengths and weaknesses. However, there is always room for improvement"
In terms of large end-to-end deals, the market for comprehensive HR BPO services has both matured and slowed over the past 12-18 months. IDC now forecasts that the worldwide HR BPO market will have a compound annual growth rate (CAGR) of 4.4% over the 2010-2015 forecast period. The reasons for the slower growth are numerous, with weakened economic conditions chief among them. While the pace of business has led buyers to be slow to act, there are signs that the pace is starting to pick up again, especially among midsize buyers.
The report, IDC MarketScape: Worldwide HR BPO 2011 Vendor Analysis (IDC #229437), evaluates the offerings, capabilities, and prospects of 10 HR BPO vendors. These providers were evaluated using specific criteria that IDC identified as key factors contributing to vendor success in the worldwide HR BPO market. The key factors include appropriateness of delivery model, benefits of the services in improving efficiency and lowering costs, partner development and deployment, execution on growth strategy, and regular introduction of service innovation. The results were used to create a graphical representation of the market based on each service provider's current capabilities and future strategies.
The vendors included in the analysis are ACS (A Xerox Company), Accenture, Automatic Data Processing (ADP), Aon Hewitt, Ceridian, Hewlett Packard (HP), IBM, Infosys, NorthgateArinso (NGA), and Tata Consultancy Services (TCS). In addition to the four vendors identified as "Leaders", four other vendors were named as "Major Players". They are ACS, AON Hewitt, Ceridian, and TCS.
"The vendors covered in this analysis generally all provide mature service offerings with similar strengths and weaknesses. However, there is always room for improvement," says Lisa Rowan, program director HR, Talent and Learning Strategies for IDC. "Areas for consideration include finding ways to help buyers lower their workforce costs and, with demand for end-to-end HR BPO slowing, vendors should demonstrate HR process improvement and efficiency through clear before and after stories."
About IDC MarketScape
The IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT (information and communications technology) suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor's position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT and telecommunications vendors can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective vendors.
For more information about IDC MarketScape, please contact Karen Moser at kmoser@idc.com.
About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 47 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
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