In the Fight for Talent, It’s Employee Experience for the Win—Everest Group

Driven by talent war, Great Resignation, and demand for hybrid working models, enterprise HR experts rank ‘enhanced employee experience’ as a key priority.

 

DALLAS, November 9, 2022 — Multi-process human resource outsourcing (MPHRO) deals are on the rise again in 2022 as enterprises seek end-to-end services that include talent acquisition and development and that keep employee experience at the core. Accordingly, MPHRO providers are continuing to make investments in next-generation technologies, automation and analytics, and are also adding an experience layer to their products to provide a seamless, integrated experience to users. Everest Group projects that this focus on employee experience, reskilling and digital transformation will drive a 7-9% growth in the MPHRO market by 2026.

 

According to Everest Group research, 42% of MPHRO buyers cite “enhanced employee experience” as a key priority for the HR function. The only priority ranking higher (53%) is “digitizing HR processes through next-generation technologies such as automation.”

 

These findings and more are detailed in Everest Group’s “MPHRO State of the Market Report 2022—Entwining Employee Experience and MPHRO in the New Normal.” The report explores key demand trends, solution characteristics, the service provider landscape and the outlook for 2023.

 

“Enterprises are facing a perfect storm when it comes to their HR operations,” said Priyanka Mitra, practice director at Everest Group. “On the heels of the pandemic and the Great Resignation, organizations are battling for talent, trying to upskill and reskill existing employees, undergoing digital and cultural transformations to retain talent and offer the hybrid working models that employees want, and adopting next-generation solutions to stay ahead of competitors. MPHRO providers can be highly valued advisors and partners in addressing these challenges. We’re already seeing a rise in the number of providers that offer end-to-end services and an integrated platform comprising core HR, talent management, workforce management, service delivery, and employee experience solutions.”

 

Notable MPHRO Trends in 2022:

  • The MPHRO market was valued at approximately US$5.4 billion in 2021. An increased focus on experience, reskilling and digital transformation along with complex compliance and cost takeout will drive the market to approximately US$7.5 billion by 2026.
  • North America and EMEA (Europe, Middle East and Asia) dominate the HRO markets as greater than 70% of the new deals emerge from those signing regions. Increased activities in Asia Pacific and Latin America regions are being observed.
  • The share of deals in the retail sector bounced back. Manufacturing, hi-tech and IT, and healthcare are other industries having a sizable number of new deals.
  • There has been a marked increase in the inclusion of more processes in the MPHRO deal as buyers seek end-to-end solutions. Digital HR services have experienced more demand owing to ongoing digital efforts by clients.

 

***Download a complimentary abstract of the report.***

 

About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our research also covers the technologies that power those processes and functions and the related talent trends and strategies. Our clients include leading global companies, service and technology providers, and investors. Clients use our services to guide their journeys to maximize operational and financial performance, transform experiences, and realize high-impact business outcomes. Details and in-depth content are available at www.everestgrp.com.

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