Global Human Resource Outsourcing (HRO) Market to Reach US$162 Billion by 2015, According to a New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on the Human Resource Outsourcing (HRO) markets. The global HRO market is projected to reach US$162 billion by the year 2015, led by growing acceptance of HRO as a tool for increasing competence and productivity in business ventures. The need to cut costs, ensure scalable operations, and incorporate efficiency is likely to drive businesses towards HR outsourcing in the future.

Human Resource Outsourcing: A Global Strategic Business Report

The global economic meltdown forced global governments and corporations to re-evaluate business plans and strategies, whereby cost reduction has emerged as a key driving force for HR outsourcing market in the short run. HR outsourcing ensures superior performance at low cost and is also capable of converting fixed costs to variable costs. By employing the services of low-cost offshore firms, companies can realize significant cost reduction without affecting the overall quality. The impact of recession was particularly pronounced on multi-process HRO market, owing to the relatively longer payback period associated with such contracts. On the other hand, single-process HRO agreements are likely to gain traction in the short-term future, as businesses exhibit aversion to multi-process deals that generally entail large upfront investment. The recession has also enhanced the significance of offshore HRO service providers, enabling them to capture a greater share of the market from US-based HR service providers.

The United States and Europe dominate the global HRO market, as stated by the new market research report on Human Resource Outsourcing. The adverse economic scenario led HR managers in the US to emphasize on negotiating better outsourcing deals for business functions. However, clients’ ability to negotiate is determined on the type of contract – individual or comprehensive, end-to-end HR BPO – with the former providing better negotiating power to buyer organizations. Additionally, US-based businesses are increasingly opting for selective outsourcing, as it facilitates companies to avail services that are customized according to their requirements and are in line with the corporate culture. While certain companies opt for selective outsourcing due to financial constraints, others seek access to advanced technologies through such outsourcing initiatives.

Payroll is one of the most common business functions to be outsourced due to the high degree of complexity and accuracy associated with the operations. The time-consuming payroll services require extensive knowledge about federal and state rules, and huge capital investment, which makes several companies to outsource payroll. HRO market is expected to witness an increase in the number of componentized deals, which would allow buyer organizations to choose services for outsourcing as per their requirements while retaining others for in-house execution. The higher degree of flexibility being incorporated by HRO providers into their service agreements is expected to allow clients to opt for pay-as-per-use pricing or seek on-demand service changes. Continued focus on cost reduction is expected to allow new clients to focus on transaction-intensive processes to outsource.

Benefits administration is among the most complex functions involving huge volumes of transaction. In the wake of spiraling healthcare costs, technological changes, mounting complexity of health, welfare, and retirement plans and compliance with changing regulations, global businesses are opting for outsourcing of benefits. With advanced technology and sophisticated systems, outsourcers provide customers with pertinent information, self-management, varied choices, and ease of execution services. Asia represents the fastest growing market in the benefits administration segment.

Major players profiled in the fragmented HRO market include Accenture, Adecco S.A., ACS, A Xerox Company, Automatic Data Processing Inc., Ceridian Corporation, Fidelity Management and Research LLC, Genesys, Hewitt Associates LLC, IBM Global Business Services, Paychex Inc., Talx Corporation, TriCore Inc., and Ultimate Software Group Inc.

The research report titled “Human Resource Outsourcing: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a strategic review of the industry, key market trends, recent strategic corporate initiatives, and profiles of key market participants. The report provides annual sales estimates and projections for the years 2007 through 2015, and 2000 to 2006 by the following geographic markets - US, Canada, Europe, Asia, and Rest of World. Key segments analyzed include Benefits Administration Services, Payroll Services, Education and Training Services, Recruitment and Staffing Services, Hiring Administration Services, and Other Services.

For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Human_Resource_Outsourcing_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.

Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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