IDC Announces Top 10 List and Leadership Analysis of U.S. HR Services Firms

FRAMINGHAM, MA – OCTOBER 15, 2001 – New research from IDC identifies the top 10 HR services providers according to their 2000 U.S. service revenues. In this latest study, IDC reveals the top 10 HR service providers represent more than 42% of the total market for core HR services.

 

The top 5 are as follows:

1. ADP Employer Services

2. Towers Perrin

3. Hewitt Associates

4. Paychex

5. William M. Mercer

According to IDC, the top 10 firms are a diverse mix of payroll and benefit administration providers and HR process and technology consultants. No company other than ADP has even a 5% share of this fragmented market, which IDC predicts will reach $45.9 billion by 2005. Overall, the top 10 U.S. HR service providers have been most successful in providing payroll and benefit administration outsourcing services or HR process and HR technology consulting.

"With the economic slowdown delaying some HR spending, many service providers are leveraging their brand name and strong client base to demonstrate the quality and value of their offerings," said Marc Pramuk, senior analyst with IDC’s Human Resources Management Services research program. "Going forward, leaders will increasingly be called upon to show measurable results from their consulting and outsourcing services."

As HR services become more comprehensive and automate more tasks across the HR function, service providers are finding it difficult to balance the diverse skills and capabilities needed to deliver end-to-end solutions. As a result, IDC believes strategic alliances and partnerships are becoming an integral component of growth strategies.

IDC’s bulletin, A Top 10 List and Leadership Analysis of U.S. HR Service Providers (IDC #B25469) presents the top 10 HR services providers according to their 2000 U.S. service revenues. IDC then examines the current opportunities facing service providers, plotting the ability of leading service providers to align with this opportunity and to gain market share. Finally, IDC makes recommendations to help service providers to best realize the potential of these opportunities. To purchase this bulletin, contact Jim Nagle at 1-800-343-4952, extension 4549, or at jnagle@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

 

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