Friday, April 15, 2005
HRO executives expect consolidation
All the major HRO players are saying their sales pipelines are full. The problem is that competition is making the revenues per employee per year drop substantially, and margins are not sufficiently high to sustain the industry. Everyone seems to be wondering who will be acquired next. With 8-9 major players, the industry looks like it will be a messy place until there are 3-4 survivors left. Here's analysis from Computer Business Review.