HRO Report for 2007

In a recent joint flash report that was web cast by EquaTerra and IDC, interesting facts and forecasts have been predicted. The web cast was focused on HR Outsourcing changes in 2007. EquaTerra may be best known to the industry for their advisory and research expertise in HRO and does not need a special mention, as does IDC. During the web cast, EquaTerra founder, Mark Hodges, and IDC Program Manager, Lisa Rowan, both presented the report that dealt with HRO trends, market forecasts, contract analysis, market supply and demand, and lessons learned. For instance it was reported that:
HRO pricing has increased as has HRO provider profitability.
Global HRO deals are on a decrease with only 2 to 4 projected for 2007.
Large and more sophisticated buyers are seeking more global solution offerings although best in class solutions and regional approaches dominated.
Demand is outstripping supply and the capacity of providers are constrained.
All HRO providers suffer from multiple delivery service issues.
HRO renegotiations have begun.
New providers are consistently entering the market.
HRO is still an underutilized performance improvement option in Global 2000 organizations, particularly those in the mid-market range.
Lower cost, offshore delivery is still being underutilized and is less mature in HRO in general.