MHR

Jun 10, 2024

News provided by Share this article Share toX NEW YORK, June 10, 2024 /PRNewswire/ -- The global human resource outsourcing (HRO) market size is estimated to grow by USD 13.3 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 5.28% during the forecast period. Digitization of human resource outsourcing is driving market growth, with a trend towards rise in adoption of recruitment analytics. However, increased dependence on outsourcing agencies poses a challenge. Key market players include Accenture Plc, Adecco Group AG, Aon plc, Automatic Data Processing Inc., Capgemini Service SAS, Capita Plc, Ceridian HCM Holding Inc., CGI Inc., FMR LLC, Genpact Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., Hexaware Technologies Ltd., Infosys Ltd., International Business Machines Corp., ManpowerGroup Inc., MHR International UK Ltd., Randstad NV, UKG Inc., and Wipro Ltd. Technavio has announced its latest market research report titled Global human resource outsourcing (HRO) market 2024-2028 Forecast period Segment Covered End-user (Large enterprises and SMEs), Service (PO, BOA, MPHRO, RPO, and LSO), and Geography (North America, Europe, APAC, South America, and Middle East and Africa) Region Covered Key companies profiled Accenture Plc, Adecco Group AG, Aon plc, Automatic Data Processing Inc., Capgemini Service SAS, Capita Plc, Ceridian HCM Holding Inc., CGI Inc., FMR LLC, Genpact Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., Hexaware Technologies Ltd., Infosys Ltd., International Business Machines Corp., ManpowerGroup Inc., MHR International UK Ltd., Randstad NV, UKG Inc., and Wipro Ltd. Key Market Trends Fueling Growth HR outsourcing markets witness an uptick due to the growing need for managing large volumes of workforce data. Advanced IT solutions, such as analytics, offer insights for efficient recruitment. Structured data provides valuable information for recruiting top talent. Analytical tools offer quick insights for HR executives. Proactive recruitment using big data and social media is becoming standard. Innovations in interviewing and testing processes enhance the recruitment process. The Human Resource Outsourcing (HRO) market is currently experiencing significant growth, with organizations turning to external providers for various HR functions. One trend in this space is the use of technology for streamlining processes, such as automating recruitment and onboarding. Another trend is the increasing popularity of outsourcing strategic HR functions, like talent management and employee engagement. Furthermore, there is a growing demand for customized HR solutions that cater to specific industry needs. Additionally, cost savings and improved efficiency continue to be key drivers for HRO adoption. Overall, the HRO market is expected to continue expanding as more businesses seek to optimize their HR functions. Research report provides comprehensive data on impact of trend. For more details-  Download a Sample Report Market Challenges Companies face a dilemma when deciding between managing HR functions in-house or outsourcing. Outsourcing HR may lead to dependency on agencies, potential conflicts due to varying business standards, and loss of control. SLAs may not cover all management decisions, and cost-driven outsourcing can result in low-quality services and loss of sensitive information. These challenges can hinder market growth during the forecast period. The Human Resource Outsourcing (HRO) market faces several challenges in providing effective services to clients. Cost savings and efficiency are key drivers for businesses to outsource HR functions. However, ensuring data security and compliance with labor laws in different regions can be complex. Additionally, cultural differences and communication challenges can arise when working with offshore providers. Furthermore, the integration of various HR systems and processes can be time-consuming and require significant resources. Lastly, the need for customized solutions and maintaining quality service levels adds to the complexity of HRO. Addressing these challenges requires a strategic approach and strong partnerships between clients and service providers. Segment Overview 3.5 Middle East and Africa 1.1 Large enterprises- Large enterprises, with over 5000 employees, collaborate and hire industry leaders from diverse organizations worldwide. This human resource outsourcing (HRO) approach fosters innovation and attracts more companies. Vendors like Automatic Data Processing Inc. provide secure, integrated payroll and Human Capital Management (HCM) solutions, enhancing productivity in industries such as construction and manufacturing. These factors fuel the growth of the HRO market. For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 - 2022) - Download a Sample Report Research Analysis The Human Resource Outsourcing (HRO) market encompasses third-party organizations providing specialized expertise in HR tasks, including performance management functions and recruitment analytics. In the IT sector, HRO services ensure efficiency and scalability through outsourcing agencies, leveraging technological advancements such as IoT, cloud computing, and big data. The hospitality sector also benefits from HRO, optimizing service level agreements and benefit administration outsourcing. Social media plays a crucial role in talent acquisition and employee engagement. Market development opportunities abound in industrialization, digitization, and the implementation of augmented reality. HRO offers learning services outsourcing and payroll outsourcing to BSFI institutions, streamlining processes and enhancing overall productivity. Market Research Overview The Human Resource Outsourcing (HRO) market refers to the practice of contracting an external service provider to manage and execute HR functions and processes. This includes services such as recruitment, payroll, benefits administration, and training and development. HRO enables organizations to focus on their core business while reducing costs and improving efficiency in HR operations. Extensively used technologies like cloud-based platforms and AI are transforming the HRO landscape, offering real-time analytics, automation, and enhanced employee experiences. The market is expected to grow significantly due to increasing adoption by small and medium-sized enterprises and the rising trend of remote work. Additionally, the need for cost savings, increased flexibility, and access to specialized expertise are key drivers for the HRO market. Table of Contents: About Technavio Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios. Contacts