HR Outsourcing Market

What is the Global Key Area of HR Outsourcing?

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?

Market Insights

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

1. Preface
1.1. Report Description
1.1.1. Purpose of the Report
1.1.2. Target Audience
1.1.3. USP and Key Offerings
1.2. Research Scope
1.3. Research Methodology
1.3.1. Phase I – Secondary Research
1.3.2. Phase II – Primary Research
1.3.3. Phase III – Expert Panel Review
1.3.4. Approach Adopted
1.3.4.1. Top-Down Approach
1.3.4.2. Bottom-Up Approach
1.3.5. Assumptions
1.4. Market Segmentation

2. Executive Summary
2.1. Market Snapshot: Global HR Outsourcing Market
3. Market Dynamics & Factors Analysis

3.1. Introduction
3.1.1. Global HR Outsourcing Market Value, 2016-2028, (US$ Bn)
3.2. Market Dynamics
3.2.1. Key Growth Trends
3.2.2. Major Industry Challenges
3.2.3. Key Growth Pockets
3.3. Attractive Investment Proposition,2021
3.3.1. Type
3.3.2. Application
3.3.3. Geography
3.4. Porter’s Five Forces Analysis
3.4.1. Threat of New Entrants
3.4.2. Bargaining Power of Buyers/Consumers
3.4.3. Bargaining Power of Suppliers
3.4.4. Threat of Substitute Types
3.4.5. Intensity of Competitive Rivalry
3.5. Value Chain Analysis

4. Market Positioning of Key Players, 2021
4.1. Company market share of key players, 2021
4.2. Top 6 Players
4.3. Top 3 Players
4.4. Major Strategies Adopted by Key Players

5. COVID 19 Impact Analysis
5.1. Global HR Outsourcing Market Pre Vs Post COVID 19, 2019 – 2028
5.2. Impact on Import & Export
5.3. Impact on Demand & Supply

6. North America
6.1. North America HR Outsourcing Market, by Country, 2016-2028(US$ Bn)
6.1.1. U.S.
6.1.2. Canada
6.1.3. Mexico
6.2. North America HR Outsourcing Market, by Type, 2016-2028(US$ Bn)
6.2.1. Overview
6.2.2. Payroll Outsourcing
6.2.3. Benefits Administration Outsourcing
6.2.4. Multi process Human Resource Outsourcing
6.2.5. Recruitment Process Outsourcing
6.2.6. Learning Services Outsourcing
6.2.7. Others
6.3. North America HR Outsourcing Market, by Application, 2016-2028(US$ Bn)
6.3.1. Overview
6.3.2. BFSI
6.3.3. Healthcare
6.3.4. IT & ITES
6.3.5. Hospitality
6.3.6. Retail
6.3.7. Others

7. Europe
7.1. Europe HR Outsourcing Market, by Country, 2016-2028(US$ Bn)
7.1.1. UK
7.1.2. France
7.1.3. Germany
7.1.4. Italy
7.1.5. Russia
7.1.6. Ukraine
7.1.7. Spain
7.1.8. Belgium
7.1.9. Netherland
7.1.10. Austria
7.1.11. Sweden
7.1.12. Poland
7.1.13. Denmark
7.1.14. Switzerland
7.1.15. Rest of Europe
7.2. Europe HR Outsourcing Market, by Type, 2016-2028(US$ Bn)
7.2.1. Overview
7.2.2. Payroll Outsourcing
7.2.3. Benefits Administration Outsourcing
7.2.4. Multi process Human Resource Outsourcing
7.2.5. Recruitment Process Outsourcing
7.2.6. Learning Services Outsourcing
7.2.7. Others
7.3. Europe HR Outsourcing Market, by Application, 2016-2028(US$ Bn)
7.3.1. Overview
7.3.2. BFSI
7.3.3. Healthcare
7.3.4. IT & ITES
7.3.5. Hospitality
7.3.6. Retail
7.3.7. Others

8. Asia Pacific
8.1. Asia Pacific HR Outsourcing Market, by Country, 2016-2028(US$ Bn)
8.1.1. China
8.1.2. Japan
8.1.3. South Korea
8.1.4. India
8.1.5. Australia
8.1.6. New Zealand
8.1.7. Taiwan
8.1.8. Indonesia
8.1.9. Malaysia
8.1.10. Philippine
8.1.11. Rest of Asia Pacific
8.2. Asia Pacific HR Outsourcing Market, by Type, 2016-2028(US$ Bn)
8.2.1. Overview
8.2.2. Payroll Outsourcing
8.2.3. Benefits Administration Outsourcing
8.2.4. Multi process Human Resource Outsourcing
8.2.5. Recruitment Process Outsourcing
8.2.6. Learning Services Outsourcing
8.2.7. Others
8.3. Asia Pacific HR Outsourcing Market, by Application, 2016-2028(US$ Bn)
8.3.1. Overview
8.3.2. BFSI
8.3.3. Healthcare
8.3.4. IT & ITES
8.3.5. Hospitality
8.3.6. Retail
8.3.7. Others

9. Latin America
9.1. Latin America HR Outsourcing Market, by Country, 2016-2028(US$ Bn)
9.1.1. Brazil
9.1.2. Argentina
9.1.3. Peru
9.1.4. Chile
9.1.5. Colombia
9.1.6. Rest of Latin America
9.2. Latin America HR Outsourcing Market, by Type, 2016-2028(US$ Bn)
9.2.1. Overview
9.2.2. Payroll Outsourcing
9.2.3. Benefits Administration Outsourcing
9.2.4. Multi process Human Resource Outsourcing
9.2.5. Recruitment Process Outsourcing
9.2.6. Learning Services Outsourcing
9.2.7. Others
9.3. Latin America HR Outsourcing Market, by Application, 2016-2028(US$ Bn)
9.3.1. Overview
9.3.2. BFSI
9.3.3. Healthcare
9.3.4. IT & ITES
9.3.5. Hospitality
9.3.6. Retail
9.3.7. Others

10. Middle East
10.1. Middle East HR Outsourcing Market, by Country, 2016-2028(US$ Bn)
10.1.1. UAE
10.1.2. KSA
10.1.3. Israel
10.1.4. Turkey
10.1.5. Iran
10.1.6. Rest of Middle East
10.2. Middle East HR Outsourcing Market, by Type, 2016-2028(US$ Bn)
10.2.1. Overview
10.2.2. Payroll Outsourcing
10.2.3. Benefits Administration Outsourcing
10.2.4. Multi process Human Resource Outsourcing
10.2.5. Recruitment Process Outsourcing
10.2.6. Learning Services Outsourcing
10.2.7. Others
10.3. Middle East HR Outsourcing Market, by Application, 2016-2028(US$ Bn)
10.3.1. Overview
10.3.2. BFSI
10.3.3. Healthcare
10.3.4. IT & ITES
10.3.5. Hospitality
10.3.6. Retail
10.3.7. Others

11. Africa
11.1. Africa HR Outsourcing Market, by Country, 2016-2028(US$ Bn)
11.1.1. South Africa
11.1.2. Egypt
11.1.3. Nigeria
11.1.4. Rest of Africa
11.2. Africa HR Outsourcing Market, by Type, 2016-2028(US$ Bn)
11.2.1. Overview
11.2.2. Payroll Outsourcing
11.2.3. Benefits Administration Outsourcing
11.2.4. Multi process Human Resource Outsourcing
11.2.5. Recruitment Process Outsourcing
11.2.6. Learning Services Outsourcing
11.2.7. Others
11.3. Africa HR Outsourcing Market, by Application, 2016-2028(US$ Bn)
11.3.1. Overview
11.3.2. BFSI
11.3.3. Healthcare
11.3.4. IT & ITES
11.3.5. Hospitality
11.3.6. Retail
11.3.7. Others

12. Global
12.1. Global HR Outsourcing Market, by Type, 2016-2028(US$ Bn)
12.1.1. Overview
12.1.2. Payroll Outsourcing
12.1.3. Benefits Administration Outsourcing
12.1.4. Multi process Human Resource Outsourcing
12.1.5. Recruitment Process Outsourcing
12.1.6. Learning Services Outsourcing
12.1.7. Others
12.2. Global HR Outsourcing Market, by Application, 2016-2028(US$ Bn)
12.2.1. Overview
12.2.2. BFSI
12.2.3. Healthcare
12.2.4. IT & ITES
12.2.5. Hospitality
12.2.6. Retail
12.2.7. Others

13. Company Profiles
13.1. HP Company
13.2. Genesys
13.3. Xerox
13.4. Aon Hewitt LLC
13.5. Infosys
13.6. Accenture
13.7. BPO Ltd
13.8. IBM
13.9. Dodo Point
13.10. Ultimate Software Group, Inc.
13.11. Mercer, LLC
13.12. NGA Human Resources
13.13. Others

List of Figures

FIG. 1 Global HR Outsourcing Market: Research Methodology
FIG. 2 Market Size Estimation – Top Down & Bottom up Approach
FIG. 3 Global HR Outsourcing Market Segmentation
FIG. 4 Global HR Outsourcing Market, by Type, 2019 (US$ Bn)
FIG. 5 Global HR Outsourcing Market, by Application, 2021 (US$ Bn)
FIG. 6 Global HR Outsourcing Market, by Geography, 2021 (US$ Bn)
FIG. 7 Attractive Investment Proposition, by Geography, 2021
FIG. 8 Global Market Positioning of Key HR Outsourcing Market Manufacturers, 2019
FIG. 9 Global HR Outsourcing Market Value Contribution, By Type, 2021 & 2028 (Value %)
FIG. 10 Global HR Outsourcing Market, by Payroll Outsourcing, Value, 2016-2028 (US$ Bn)
FIG. 11 Global HR Outsourcing Market, by Benefits Administration Outsourcing, Value, 2016-2028 (US$ Bn)
FIG. 12 Global HR Outsourcing Market, by Multi process Human Resource Outsourcing, Value, 2016-2028 (US$ Bn)
FIG. 13 Global HR Outsourcing Market, by Others, Value, 2016-2028 (US$ Bn)
FIG. 14 Global HR Outsourcing Market Value Contribution, By Application, 2021 & 2028 (Value %)
FIG. 15 Global HR Outsourcing Market, by BFSI, Value, 2016-2028 (US$ Bn)
FIG. 16 Global HR Outsourcing Market, by Healthcare, Value, 2016-2028 (US$ Bn)
FIG. 17 Global HR Outsourcing Market, by IT & ITES, Value, 2016-2028 (US$ Bn)
FIG. 18 U.S. HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 19 Rest of North America HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 20 U.K. HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 21 Germany HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 22 France HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 23 Italy HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 24 Spain HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 25 Russia HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 26 BENELUX HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 27 Poland HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 28 Austria HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 29 Rest of Europe HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 30 Japan HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 31 China HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 32 India HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 33 South Korea HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 34 Australia HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 35 Southeast Asia HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 36 Rest of Asia Pacific HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 37 Middle East & Africa HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 38 South Africa HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 39 Nigeria HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 40 Egypt HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 41 GCC HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 42 Israel HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 43 Latin America HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 44 Mechanicalzil HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 45 Argentina HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 46 Colombia HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 47 Peru HR Outsourcing Market, 2016-2028 (US$ Bn)
FIG. 48 Chile HR Outsourcing Market, 2016-2028 (US$ Bn)

List of Tables

TABLE 1 Market Snapshot: Global HR Outsourcing Market
TABLE 2 Global HR Outsourcing Market, by Type, 2016-2028 (US$ Bn)
TABLE 3 Global HR Outsourcing Market, by Application, 2016-2028 (US$ Bn)
TABLE 4 Global HR Outsourcing Market, by Geography, 2016-2028 (US$ Bn)
TABLE 5 North America HR Outsourcing Market, by Type, 2016-2028 (US$ Bn)
TABLE 6 North America HR Outsourcing Market, by Application, 2016-2028 (US$ Bn)
TABLE 7 North America HR Outsourcing Market, by Country, 2016-2028 (US$ Bn)
TABLE 8 Europe HR Outsourcing Market, by Type, 2016-2028 (US$ Bn)
TABLE 9 Europe HR Outsourcing Market, by Application, 2016-2028 (US$ Bn)
TABLE 10 Europe HR Outsourcing Market, by Country/Region, 2016-2028 (US$ Bn)
TABLE 11 Asia Pacific HR Outsourcing Market, by Type, 2016-2028 (US$ Bn)
TABLE 12 Asia Pacific HR Outsourcing Market, by Application, 2016-2028 (US$ Bn)
TABLE 13 Asia Pacific HR Outsourcing Market, by Country/Region, 2016-2028 (US$ Bn)
TABLE 14 Latin America HR Outsourcing Market, by Type, 2016-2028 (US$ Bn)
TABLE 15 Latin America HR Outsourcing Market, by Application, 2016-2028 (US$ Bn)
TABLE 16 Latin America HR Outsourcing Market, by Country/Region, 2016-2028 (US$ Bn)
TABLE 17 Middle East HR Outsourcing Market, by Type, 2016-2028 (US$ Bn)
TABLE 18 Middle East HR Outsourcing Market, by Application, 2016-2028 (US$ Bn)
TABLE 19 Middle East HR Outsourcing Market, by Country/Region, 2016-2028 (US$ Bn)
TABLE 20 Africa HR Outsourcing Market, by Type, 2016-2028 (US$ Bn)
TABLE 21 Africa HR Outsourcing Market, by Application, 2016-2028 (US$ Bn)
TABLE 22 Africa HR Outsourcing Market, by Country/Region, 2016-2028 (US$ Bn)