Experience Reigns Supreme in the Talent War | In the News

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.

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.

Read more in Future CIO

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.

Everest Group Projects Robust 6-8% Growth for Multi-Process HR Outsourcing in 2019; Transformation to Next-Gen HR Model Is Driving Growth | Press Release

MPHRO service providers augmenting services with cloud, analytics, mobility-based solutions to deliver greater value to buyers

The global multi-process human resources outsourcing (MPHRO) market will sustain its 6-8 percent annual growth over the next three years and will exceed the US$5 billion mark by 2020, according to Everest Group. This growth trajectory is fueled by enterprises increasingly seeking strategic partners with the expertise to support a next-generation HR model wherein technology is leveraged to not only provide cost reduction and process efficiency but also orchestrate a seamless, intuitive employee experience.

At the heart of the next-generation HR model are digital tools and concepts such as analytics, automation, and cloud:

  • Analytics: Analytics solutions can have a significant impact in mitigating all business challenges faced by enterprises through enhanced visibility and control. However, despite the growing adoption of basic analytics solutions, advanced analytics penetration within HR still remains relatively low.
  • Automation: Automation has the potential to bring about enhanced efficiency and reduce error rates, thus reducing the cost of operations. However, since the HR landscape already has a high leverage of technology, basic automation has found limited penetration. Nevertheless, with advanced forms of automation solutions (such as artificial intelligence) gaining traction, the scenario is slowly changing.
  • Cloud: Cloud has become a major disruptive force in reengineering HR operations. Cloud-based solutions not only provide an elevated employee experience, but also offer an integrated view of the data, allowing enterprises (or providers) to glean strategic insights to overcome many talent-related challenges.

“The most critical issues facing enterprises today are HR challenges such as the scarcity of talent, the high cost of HR operations, and providing employee experiences that are required to maintain competitive positioning,” said Anil Vijayan, practice director at Everest Group. “Increasingly, enterprises of all sizes are looking to their MPHRO service providers, seeking strategic partners who can pave their way through the digital HR transformation journey. The importance of third-party advisory has increased sharply, and, going forward, digitally-driven, orchestration-led engagements will form the primary deal archetypes in the ever-evolving MPHRO marketplace.”

These findings and more are explored in Everest Group’s recently published report, “Multi-Process Human Resources Outsourcing (MPHRO) Annual Report 2019 – Unraveling the HR Conundrum Through Digital Adoption.” This research provides comprehensive coverage of the 2017-2018 HRO market and analyzes it across various dimensions such as market overview, evolving market situation, and buyer adoption trends.

*** Download Complimentary Abstract ***

 Additional Key Findings:

  • The market has witnessed adoption from first-time outsourcers as they venture into cloud-based HR services delivery.
  • North America continues to dominate as the primary decision-making location; however, its share is slowly being acquired by other geographies such as Asia, Eastern Europe and the Middle East.
  • With enterprises taking a more strategic outlook toward HRO, there has been a marked increase in the inclusion of talent management processes. Enterprises want to undergo end-to-end transformation of their HR processes rather than focusing on transactional processes in isolation.
  • MPHRO deals on third-party SaaS-based platforms are witnessing much faster adoption rates. Among prominent third-party platforms, Workday has witnessed the highest traction, followed by SAP and SuccessFactors.
  • While manufacturing and financial services still lead the adoption in MPHRO, non-traditional adopters such as healthcare and retail have seen an uptick in adoption.
  • The market continues to witness steady inclusion of offshoring within its deals. India retains its position as the most favored offshore location; however, providers are also investing in Eastern Europe and Latin America.

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