The worldwide human resources (HR) business process outsourcing (BPO) market is forecasted to grow at 4.4% compound annual growth rate (CAGR) over the 2010-2015 period, according to a new report by International Data Corporation (IDC).
For the HR BPO market, the IDC MarketScape report placed four vendors – ADP, Accenture, IBM, and NorthgateArinso – in the "Leaders" category for 2011, while four other vendors – ACS, AON Hewitt, Ceridian, and TCS – were named as "Major Players".
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, primarily due to weakened economic conditions.
There are signs that the pace of business is starting to pick up again, especially among midsize buyers, despite the slow pace that has led buyers to act slow.
The IDC report surveyed the offerings, capabilities, and prospects of 10 HR BPO vendors, which include ACS (A Xerox Company), Accenture, Automatic Data Processing (ADP), Aon Hewitt, Ceridian, Hewlett Packard (HP), IBM, Infosys, NorthgateArinso (NGA), and Tata Consultancy Services (TCS).
IDC program director of HR, Talent and Learning Strategies Lisa Rowan said the vendors covered in this analysis generally all provide mature service offerings with similar strengths and weaknesses.
"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," Rowan said.
