Whatever the future holds, there’s no denying that HRO activity at midmarket
companies is increasing, thanks to lower costs and faster implementation times.
Since 2002, the average price of midmarket multi-process HRO deals has declined
40 percent, to $600 per employee, according to Everest Research Institute, an
HRO market researcher and consulting firm. That’s good news for buyers because
it means suppliers are getting more efficient and can deliver at a better price
point, says Everest Research vice president Monica Barron.
Implementation times are down too. ADP, for example, is implementing midmarket
multi-process HRO contracts in four to six months, half the time it took two
years ago. At Ceridian, implementation cycles have dropped 25 percent over the
past couple years, to between six and nine months.
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