HR Outsourcing Market By Type (Payroll Outsourcing, Benefits Administration Outsourcing, Multi process Human Resource Outsourcing, Recruitment Process Outsourcing, Learning Services Outsourcing) By End Use (BFSI, Healthcare, IT & ITES, Hospitality, Retail, Others) By Services (Payroll Outsourcing, Recruitment Process Outsourcing, Multi-process human resource Outsourcing, Learning services Outsourcing, Other) - Growth, Future Prospects And Competitive Analysis, 2016 – 2028
The IT & ITES industry holds the lion's share of the global HR outsourcing consumption market. Due to a rise in demand for cloud-based outsourcing services that help businesses better manage their assets, the IT & ITES vertical is anticipated to develop at the quickest CAGR throughout the projection period. With a $20.1 billion revenue, Accenture reportedly dominates the IT outsourcing market. With $16.65 billion in revenue, Cognizant Technology Solutions comes in second, followed by Infosys with $13.56 billion.
What is the Market Size of HR Outsourcing in terms of value?
The market for global HR outsourcing is anticipated to grow significantly over the next several years, at a CAGR of 4.70 percent. As a result, the market for HR outsourcing worldwide was estimated to be worth USD 32.1 billion in 2021 and is anticipated to grow to USD 42.2 billion by 2028. Therefore, the need for HR outsourcing is anticipated to grow significantly in the upcoming years, and it is anticipated to create revenue opportunities for the major market participants of USD 10.18 million between 2022 and 2028.
Is HR Outsourcing Fragmented Market?
The market for human resource outsourcing is diverse, and vendors compete by putting growth tactics like technological advancements and acquisitions into practice. IoT, cloud computing, big data, analytics, and augmented reality are just a few of the cutting-edge technologies that are being incorporated into industrial processes through human resource outsourcing. These developments help industries integrate vertical and horizontal organizational structures. Additionally, firms require outsourced human resources to run their divisions.
Interesting Facts about HR Outsourcing Industry
The digitization of human resource outsourcing is what is driving the demand for this service. Additionally, it is anticipated that greater recruiting analytics adoption will advance the human resource outsourcing market. It lessens the number of transactions with little value. It helps reduce management diversion from the primary business, together with other considerations, is one of the main drivers of market expansion.
The following are the primary market inhibitors that are anticipated to limit market expansion in the global HR Outsourcing market: As a result of losing control over their workforce, outsourcing makes it harder for companies to retain ties with their employees. This factor, along with others, is anticipated to restrain the growth of the HR Outsourcing market throughout the forecast period.
In terms of volume and value, the North America region dominated the worldwide HR Outsourcing market in 2021, and it is anticipated that this dominance would last throughout the forecast period.
Payroll outsourcing is expected to rise rapidly throughout the forecasted period since businesses worldwide are increasingly turning to payroll services to reduce expenses.
Who are the Top 10 players/companies in the HR Outsourcing market in terms of value?
The key players in the global HR Outsourcing market in terms of value include Hewlett-Packard Company, Genesys, Xerox Corporation, Aon Hewitt LLC, Infosys, Accenture, BPO Ltd, International Business Machines Corporation, Dodo Point, Ultimate Software Group, Inc., Mercer, LLC, NGA Human Resources. These major players are focusing on technology advancements and new product improvements to improve their HR Outsourcing production and capture a competitive market share globally. For instance, Dodo Point announced a strategic alliance with Carry Protocol in July 2020. Carry Protocol is a blockchain initiative that seeks to reclaim user control over data privacy and monetization. As part of this tactical partnership, consumers that share data with Carry Protocol are compensated with CRE tokens. On the other side, in May 2020, Shinsegae Duty-Free, a luxury retail space chain based in Seoul, has established strategic cooperation with MiL.k, a blockchain-powered rewards platform, to enable loyalty point compatibility and maintenance. Customers of Shinsegae can link their current rewards accounts to the MiL.k mobile application thanks to this strategic partnership.
Who are the Top 10 Countries in the HR Outsourcing Market?
In the global HR Outsourcing market, the major countries are China, the U.S., the U.K., Germany, Mexico, Canada,, Australia, Italy, and UAE. In 2021, the United States will dominate the worldwide HR Outsourcing industry as both a producer and a consumer. Additionally, the growing demand for HR Outsourcing is a major factor driving the market in developed nations. Additionally, due to increased awareness of HR Outsourcing among young people, the market for HR Outsourcing in developing nations like India is anticipated to have significant growth in the upcoming years.
Which is the Key Application Area in the HR Outsourcing Market?
The key applications of HR Outsourcing include Payroll Outsourcing, Multi process Human Resource Outsourcing, Benefits Administration Outsourcing, Recruitment Process Outsourcing, Learning Services Outsourcing. Payroll outsourcing accounts for the majority of the market share in this sector, and it is anticipated that it will continue to rule during the projected period. Systems for outsourcing payroll are getting more and more common everywhere. Access is made easier by the cloud-based HR software service. The management of administrative and compliance tasks by third-party organizations is referred to as payroll outsourcing. Among the responsibilities of the position include maintaining personnel records, calculating salaries and compensation, adding bonuses, creating payroll-related reports, and abiding by international tax regulations. By obviating the need for internal payroll workers as well as the acquisition and upkeep of suitable software packages, it also helps organizations save money and time. In addition, it enables international organizations to stay up to date on local tax laws and steer clear of potential sanctions. Due to organizations' expanding geographic reach, there is a greater demand for time- and money-saving strategies, such as payroll outsourcing, that take into account all relevant data in order to concentrate on important issues and maintain corporate operations. The demand for payroll outsourcing is rising globally as a result of the incorporation of digital services such as big data, business analytics, and the cloud. Additionally, the market is expanding due to the rising trends of multi-country payroll outsourcing (MCPO), payroll bundling, and process automation.
What are the Major Driving Factors for the HR Outsourcing Market?
The primary factor driving the expansion of the market for human resource outsourcing is the digitization of the industry. The market for outsourcing human resources is also anticipated to rise as a result of the rising adoption of recruiting analytics. The quantity of low-value transactional activity is decreased. Managing distractions from the main business is much easier.
What are the Major Restraints for the HR Outsourcing Market?
The main factors that are expected to impede the growth of the global HR Outsourcing market include the Inability to adapt, outsourcing, and loss of control over the workforce, which make it increasingly challenging for firms to retain relationships with their employees. It's possible that the external resource won't provide much value to the company, enhanced competitive advantage, dangers to data security and confidentiality, and response time.
Which Region Dominated the World HR Outsourcing Market?
In 2021, North America will be the most important region for market growth. This is due to factors such as rapid urbanization, explosive growth in information technology, and increased government spending. Payroll services are primarily provided by software vendors in North America, and these vendors collaborate with outsourcing services in other countries. Many businesses benefit from human resource outsourcing because it is making business processes more feasible and efficient. Such factors fuel the expansion of the human resource outsourcing market. A separate operational HR department also necessitates extensive training. As a result, businesses prefer outsourcing as a solution. Such factors boost the human resource outsourcing market in North America. Because of the increasing influence of automated sub-processes, business analytics, big data, and the deployment of cloud delivery models to the government, the North American region is expected to grow the most compared to other regions during the projected period.
The market in Europe is growing at a slower pace than the markets in APAC and South America. The incorporation of cloud-based services and social media into the recruitment process will aid the growth of the North American human resource outsourcing market over the forecast period.
Segmentation of Global HR Outsourcing Market-
Global HR Outsourcing Market – By Type
Payroll Outsourcing
Benefits Administration Outsourcing
Multi process Human Resource Outsourcing
Recruitment Process Outsourcing
Learning Services Outsourcing
Global HR Outsourcing Market – By End Use
BFSI
Healthcare
IT & ITES
Hospitality
Retail
Others
Frequently asked questions about the global HR Outsourcing industry.
North America accounted for the highest share in the global HR Outsourcing market in terms of value as well as volume.
The market for human resource outsourcing is growing as a result of digitization result of greater usage of recruiting analytics. Low-value transactional activity volume is decreased. The main aspects fueling the market's growth are its ability to reduce managerial diversion from the primary operation.
Payroll Outsourcing had a major share in 2021.
IT & ITES had a major share in the global market in 2021.
