The performance of HRO industry so far in 2007 is more or less in line with EquaTerra recently concluded Buyers Pulse survey results. The survey found that 31 percent plan to renew with their current key HRO provider; 31 percent are uncertain of their future course on renewals; 17 percent plan to recompete with similar scope; 10 percent plan to terminate and bring work back in-house; 10 percent plan to recompete with expanded scope; and eight percent of respondents plan to recompete their contract with reduced scope. These percentages signal that even with dissatisfaction, most buyers will continue with some form of HRO.

• 18 major HRO contracts are reported in 2007 till this date. The contracts are a comprehensive end-to-end contract, or combined Payroll and benefits contract, or HR technology contract, or a RPO contract.
• The contracts exclude one major contract awaiting approval in July is the deal between capita Group and Southampton City Council for 10 years.
• The landmark contract signed in 2007 is the $1 billion Convergys contract with Johnson & Johnson services Inc for 10 years which is far ahead of the $171 million ACS contract with Glaxo Smithkline.
• There is one more contract by IBM with American Airlines worth $217million, however, the deal is in partnership with MercerHR.
• The 18 contracts include 7 major comprehensive end-to-end contracts, 5 contracts for payroll and benefits, 3 contracts are reportedly in RPO segment, 2 contracts are for relocation and assignment services and 1 contract for HR technology related.
• Out of the 18 contracts, 2 contracts are a renewal contracts, 1 contract is a renewal of contract by PERSI with ACS and other is a renewal by Lloyds TSB with Ceridian.
• Industry leader Hewitt is able to close one comprehensive contract with Canadian based media giant Roger Communications Inc.
• Consolidation in terms of acquisitions in HRO is continuing to happen with the Northgate information systems acquisition of ARINSO.
• Another Industry leader Accenture managed to win two contract this year with Kimberly-Clark and Macquarie bank of Australia.
• There is not much activity happened so far in the mid-market segment except the LogicaCMG and Threadneedle contract for Payroll services.