Everest Group - MCPO Annual Report 2019 - CA PDF
Everest Group - MCPO Annual Report 2019 - CA PDF
Everest Group - MCPO Annual Report 2019 - CA PDF
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Appendix 47
⚫ Operating/technology frameworks in MCPO 48
⚫ Glossary of key terms 52
⚫ Research calendar 54
⚫ References 55
⚫ Everest Group’s proprietary database of over 1,000 MCPO deals Service providers covered in detail in the analyses1
⚫ The database tracks the following elements of each MCPO deal:
– Buyer details: Industry and location including facilities and headquarters
– Deal details: Including TCV, ACV, term, start date, buyer employees served,
pay-slips processed, and the primary pricing structure
– Scope: Process coverage and geographic coverage (in terms of number of
countries covered within each region)
– Technology ownership and maintenance
– Global sourcing
1 Assessment for activpayroll, Elanor, PaySpace, and SD Worx excludes service provider inputs on this particular study and is based on Everest Group’s estimates, which
leverage Everest Group’s proprietary Transaction Intelligence (TI) database, ongoing coverage, the service provider’s public disclosures, and interaction with buyers
Confidentiality: Everest Group takes its confidentiality pledge very seriously. Any contract-specific information collected, is presented back to the industry in an aggregated fashion
This report provides a comprehensive coverage of the 2018 global Multi-Country Payroll Outsourcing market and analyzes it
across various dimensions such as market overview and key market trends, buyer adoption and solution trends, and service
provider landscape. It also identifies the key implications of the research findings for buyers and service providers.
⚫ Buyers headquartered in North America and Europe, the two most mature markets, are the
Buyer adoption
leading adopters of MCPO globally. Rising adoption is seen from the emerging markets of Asia
trends
Pacific and Latin America
⚫ The market has witnessed strong adoption by small-sized MNCs, which are spread across two
to five countries. The large market segment has also witnessed a resurgence of activity, with
many large enterprises venturing into large multi-continent deals
⚫ The small market segment witnessed a dip in the average deal size, while the mid- to large-
Solution
sized segments witnessed a significant rise due to the increase in large multi-country deals
characteristics
⚫ Offshoring continues to be adopted aggressively. India continued to be the most popular
offshore location, though other locations in Eastern Europe and Latin America are also rapidly
gaining traction
⚫ Due to the greater flexibility offered by country-specific pricing mechanisms, it continues to be
the dominant model; the other two (uniform-blended pricing and differentiated-regional pricing)
models have become increasingly rare
⚫ Analytics, automation, and enhancing user/employee experience are the key focus areas among
providers
⚫ ADP, followed by NGA HR and TMF Group, dominates the MCPO market in terms of market
Service provider
revenue. The three companies cumulatively constitute over 50% of the total market revenue
landscape
⚫ TMF Group is the most dominant player in terms of number of active deals, as they have
numerous small deals which skew the market share in their favor. However, while considering
deals with a greater number of countries, ADP and NGA HR emerge as strong contenders
⚫ The market share scenario changes by the complexity and/or the size of deals (in terms of
number of countries involved / employees covered)
Market size and growth Buyer adoption trends are analyzed across five dimensions
Market size of the MCPO market Buyer adoption trends
US$ billion X% CAGR
5
1
2.95-3.05
Process
3 scope
Buyer headquarter
1.75-1.85 region 4
1.55-1.65 2
Buyer
size
Industry
Geographic scope
2016 2017 2020E scope
Onshore 25-30%
Deals with offshore / Single-platform solution 38% 38%
72%
nearshore component
70-75%
Offshore /
nearshore Pure aggregated solution 19% 16%
2017 2016 2017
Note: For a list of all of our published HRO reports, please refer to our website page
The following documents are recommended for additional insight into the topic covered in this report. The recommended documents
provide either additional details on the topic or complementary content that may be of interest:
1. Heath and Welfare (H&W) Benefits Administration Outsourcing – Service Provider Landscape with PEAK Matrix™ Assessment 2018
(EGR-2018-24-R-2678); 2018. This report examines the dynamics of the global H&W BAO service provider landscape and its impact on the
H&W BAO market. Based on the comprehensive Everest Group PEAK Matrix, each of the 11 H&W BAO service providers are segmented into
Leaders, Major Contenders, and Aspirants. The report presents some key findings on the performance of different service provider categories.
Additionally, it provides insights into the strengths and areas of improvements of each service provider.
2. SuccessFactors-Based Human Resources Business Process Services (HR BPS) – Service Provider Landscape with
Services PEAK Matrix™ Assessment 2018 (EGR-2018-24-R-2675); 2018. This research provides comprehensive coverage of the 2017
SuccessFactors-based HR BPS market and analyzes it across various dimensions such as market overview, buyer adoption trends, solution
trends, and service provider landscape. Based on the comprehensive Everest Group PEAK Matrix assessment, in this report 11 service
providers are segmented into Leaders, Major Contenders, and Aspirants. Additionally, this report also contains Everest Group’s remarks on
each of the 11 service providers’ strengths and areas of improvement.
3. Heath and Welfare (H&W) Benefits Administration Outsourcing Market Report 2018 - Unlocking Value Through Improved Employee
Experience (EGR-2018-24-R-2719); 2018. Health and Welfare Benefits Administration Outsourcing (H&W BAO) is one of the most
compliance-driven markets in the HRO space. This research report provides a comprehensive coverage of the 2017 H&W BAO market and
analyzes it across various dimensions such as market overview, buyer adoption trends, solution & transaction trends, and
service provider landscape.
For more information on this and other research published by Everest Group, please contact us:
Anil Vijayan, Practice Director: [email protected]
Amitesh Rawat, Senior Analyst: [email protected]
Priyanka Mitra, Senior Analyst: [email protected]
® Everest Group is a consulting and research firm focused on strategic IT, business
services, and sourcing. We are trusted advisors to senior executives of leading
enterprises, providers, and investors. Our firm helps clients improve operational
and financial performance through a hands-on process that supports them in making
well-informed decisions that deliver high-impact results and achieve sustained value.
Our insight and guidance empower clients to improve organizational efficiency,
effectiveness, agility, and responsiveness. What sets Everest Group apart is the
integration of deep sourcing knowledge, problem-solving skills and original research.
Details and in-depth content are available at www.everestgrp.com.
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