This market research report provides a comprehensive analysis of the global human resource outsourcing (HRO) market by end users (BFSI, manufacturing, services, and others). It outlines the market shares for key regions such as the Americas, APAC, and EMEA. The key vendors analyzed in this report are Accenture, Aon Hewitt, ADP, IBM, and Northgate Information Solutions.
Technavio’s market research analysts estimate the global HRO market, which is expected to grow at a CAGR of around 12% between 2016 and 2020. Organizations are adopting human resource outsourcing (HRO) services to consolidate their market position, enhance their operational efficiency, and maintain an edge over their competitors. Rising investments in HRO offerings through BPaaS cloud, social media recruitment, and process automation is expected to propel the market in the coming years. The Americas is the largest contributor to the HRO market, accounting for more than 44% of the market share. The market in the Americas is driven by the need to reduce costs in HR activities such as recruitment and payroll services.
The new market research report from Technavio provides a breakdown and analysis of the HRO segments by technology.
“Of late, the organizations are adopting social media to source, advertise job vacancies, and generate leads for the best candidate. Payroll outsourcing firms worldwide are tapping social networking sites and the Internet to identify and screen potential talent and experienced people. Firms are also performing checks on professional and personal history of their staff members to obtain an insight into their personality,” says Amit Sharma, Lead Analyst, ICT, Technavio Research
BFSI is the largest end-user of HRO, accounting for 35% of the overall market revenue. Current economic volatility is exerting pressure on financial organizations to redefine their business processes and operating models. The growing costs due to changing labor laws and employment regulations coupled with the increasing awareness about HRO benefits such as staffing flexibility, access to new technology and skills, and greater alignment between HR and business are some of the key factors driving the BFSI segment’s growth in this market.
Global HRO market by BFSI segment 2015 and 2020 ($ billions)
Source: Technavio, 2016
The key players in the global HRO market include Accenture, Aon Hewitt, ADP, IBM, and Northgate Information Solutions. This market is highly fragmented with the presence of numerous large and small players. Players in the market are constantly looking for ways to increase their market share through M&A. Vendors are differentiating themselves by offering innovative solutions such as BPaaS HR analytics and process automation. Technavio’s analysts expect the market competition to intensify as numerous players are foraying into this market space. The growth of players in the market depends on their depth and breadth of HRO delivery capabilities, adoption of SMAC technologies, change management support, and strong client relationship.
A more detailed analysis is available in the Technavio report, Global HRO Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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