SpendEdge has been monitoring the global HR outsourcing industry and the industry is poised to experience spend growth of more than USD 100 billion between 2017-2021 at a CAGR of over 12% during the forecast period. Request Free Sample Pages.
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Read the 89-page research report with TOC and LOE on “The Global HR Outsourcing Industry – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
Organizations are preferring to outsource functions such as recruitment and payroll services to focus on their core operations. HR service providers are facing a demand from such organizations as they leverage their robust technical infrastructure to provide HR-related services at cost-effective rates. By virtue of being well-versed with regional regulations, HR service providers ensure buyer’s absolute adherence to the prevailing regulations and stay immune from any risks associated with non-compliance with these regulations. These capabilities are expected to draw investments into the HR outsourcing industry during the forecast period.
In terms of spend growth, North America claims the highest share in the global HR outsourcing industry. The prevalence of stringent labor laws and the existence of organizations with multi-country payroll in North America are compelling buyers to outsource these functions to HR service providers. Meanwhile, in APAC, the shortage of skilled professionals is driving buyers to outsource the RPO functions to HR recruitment firms. They leverage their established recruitment networks to reach a large number of candidates.
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Insights into the industry pricing trends
- Adoption of technological platforms, such as cloud systems, and periodic technological upgrades will result in a sharp increase in the cost of services incurred by HR outsourcing suppliers. Such an increasing expenditure will compel them to hike the charges of their services.
- Suppliers are incurring an increasing expenditure on salaries to retain the existing employees with niche skill sets to deliver services like HR analytics consulting, payroll process, and compliance that requires an in-depth understanding of various HR labor laws.
What are the strategies to adopt to optimize procurement spend in this industry?
- Employment of a competitive bidding process helps buyers in the HR outsourcing industry to obtain better discounts, value-added service, service assurance, and increases the transparency of service provider selection process.
- It is advised that buyers partner with suppliers who offer cloud-based software and applications. The cloud-based system is usually cost-effective and efficient because it is hosted by suppliers and buyers just need an internet connection for management. This will optimize their expenses on infrastructure.
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Some of the key topics covered in this report are:
- HR outsourcing industry spend segmentation by region
- Total cost of ownership analysis in the HR outsourcing industry
- Regional spend opportunity for HR outsourcing suppliers
- HR outsourcing suppliers cost structure
- HR outsourcing pricing models analysis
- HR outsourcing procurement best practices
- Category management objectives
- Cost saving opportunities in the HR outsourcing industry
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