London, U.K. (PRWEB) November 16, 2005
The Human Resource Outsourcing market remains robust, according to the Q3 Global HR Outsourcing Market Forecast released by NelsonHall, the leading business process outsourcing research and consultancy, despite highly variable reported pricing, particularly in multi-process HRO.
“The overall market for HR outsourcing remains robust, with multi-process HRO eclipsing 20% for the foreseeable future,” said Scott Golas, Director of NelsonHall’s Global HRO research and consulting practice.
Although there is considerable “noise” surrounding the downward trend on pricing, there is no definitive benchmark with which to make comparisons. Pricing in single point HR services is more commoditized, but even this can vary widely as vendors bundle consulting services with administration to increase the value proposition and differentiate themselves.
The research revealed that vendor capabilities vary greatly and are concentrated geographically, with North America leading the way. However, European vendors are on an accelerated build-up of products and services having learned from their North American counterparts and are rapidly building pan European offerings.
In addition, the research points up an emerging market across geographies.
“The market for single point HR services, namely recruiting and learning services, is much larger than previously estimated and more fragmented than expected,” Golas said, “At the same time, the corporate investment in each of these areas far exceeds what is under the auspices of the typical HR department. Together, this creates large untapped market, ripe for potential savings and consolidation into more comprehensive end-to-end solutions. The vendor response to this burgeoning market will likely vary, depending on the point of origin. Niche HR solution providers should seek to add administrative and consulting services while large multi-process vendors will probably look to acquire or build capabilities in these areas which are now largely underdeveloped.”
NelsonHall specializes in researching, analyzing and advising on services markets worldwide. We help service buyers to assess the performance of their business processes, to optimize their sourcing strategy, to understand the capabilities of service vendors, and to learn from the experiences of other organizations within their industry. We also help service vendors to develop service strategies and offerings, target market opportunities, and appreciate service buyer requirements.
As part of its market-leading BPO research portfolio, NelsonHall has developed the HR Outsourcing (HRO) Program as a dedicated service for HRO professionals. The service tracks, monitors and analyses the activities of companies engaged in HRO, and delivers detailed market analyses, vendor assessments and case studies. Information on NelsonHall is available on the Internet at http://www.nelson-hall.com
This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.
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