It’s interesting that only several vendors hold a large majority of the market share in the HRO world – almost an 80/20 rule. If you look at the top 3 (Hewitt, Accenture and ADP) you are probably getting close to 70% of the total HRO market share depending on how you measure it. This piece is not to make any judgements on the quality of any of these three vendors, but more of a statement of fact as to who is leading in which markets.
Domestic U.S. HRO: Hewitt is a pretty clear leader in the U.S. HRO space. While they have had some recent internal problems around their implementation and turnover of key staff, they are still quite easily the largest HRO vendor in the states.
Global HRO: Everyone would like to say they do global HRO and are quite good at it. If you look at Hewitt, while they have some small amount of presence in the global HRO market, if you look at their entire portfolio, they are pretty clearly a domestic U.S. player. For global HRO you really have to look towards Accenture. Again, they have huge market share here.
Middle Market: Again as has been stated on systematicHR before, I don’t think anyone is coming close to ADP. Their ability to leverage their very large salesforce combined with many (very very many) existing relationships in the mid-market space make them hard to beat. Market penetration is what counts in this market and ADP has it.