Ovum analyzes the market dynamics of multi-process HR BPO

According to the global industry analyst firm Ovum, the market for multi-process human resources (HR) outsourcing has evolved consequently. The market has experienced  the adoption of horizontal business process outsourcing (BPO) as well as  demise of the leading providers' service in large deals. In addition, it remains uncertain as to whether advances in HR-related technologies will directly affect the adoption of complex BPO services.

In a new report, Ovum analyzes the market dynamics of multi-process HR BPO to understand if buying behaviour is changing or whether buyers are focussing on less strategic investments. The report reveals that buying organizations 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.

Thomas Reuner, Principal Analyst, Ovum, said, "Despite the hype around cloud services, the demand for multi-process HR BPO is confined to company-specific circumstances such as M&A or a lack of centralization and therefore standardization. The wider market, however, shows a preference for shared services, single-process BPO, and a technology refresh of existing systems."

He further added, "As in other segments of the IT services market, the impact of cloud services and mobile extensions has so far been modest. 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."

Ovum has also added that cloud components and mobile extensions are transforming HR services and single-process HR BPO.