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Limited demand for multi-process HR BPO

Jack Loo | May 23, 2013
Ovum study reveals buyers’ preference for shared services approach, single-process and add-ons for existing systems.

Despite the hype around cloud services, the demand for multi-process HR BPO is confined to company-specific circumstances such as M&A, according to an Ovum report Revisiting MultiProcess HR BPO.

"As in other segments of the IT services market, the impact of cloud services and mobile extensions has so far been modest. Beyond complex BPO contracts, however, the impact is significantly greater as many organisations deploy these solutions as part of a technology refresh of existing systems," said Thomas Reuner, principal analyst at Ovum.

Ovum sees demand for complex BPO contracts coming from a different direction, namely the bundling of transactional back-office processes such as finance and accounting (F&A) and procurement.

In Revisiting MultiProcess HR BPO, Ovum analyses the market dynamics of multi-process HR BPO to understand if buying behaviour is changing, or whether buyers are focusing on less strategic investments.

The report reveals that buying organisations show a preference for a shared services approach, single-process BPO, and the deployment of new modules or functionalities to existing systems. Also, it outlines that the market for multi-process HR BPO is dominated by a small set of vendors.

"Cloud components and mobile extensions are transforming HR services and single-process HR BPO, but so far this has not led to higher demand in multi-process engagements," observed Reuner.


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