The Human Resource Outsourcing market remains robust, according to the Q3 Global HR Outsourcing Market Forecast released by NelsonHall, the leading business process outsourcing research and consultancy, despite highly variable reported pricing, particularly in multi-process HRO.
The Human Resource Outsourcing market remains robust, according to the Q3 Global HR Outsourcing Market Forecast released by NelsonHall, the leading business process outsourcing research and consultancy, despite highly variable reported pricing, particularly in multi-process HRO.
ìThe overall market for HR outsourcing remains robust, with multi-process HRO eclipsing 20% for the foreseeable future,î said Scott Golas, Director of NelsonHallís Global HRO research and consulting practice.
Although there is considerable ìnoiseî surrounding the downward trend on pricing, there is no definitive benchmark with which to make comparisons. Pricing in single point HR services is more commoditized, but even this can vary widely as vendors bundle consulting services with administration to increase the value proposition and differentiate themselves.
The research revealed that vendor capabilities vary greatly and are concentrated geographically, with North America leading the way. However, European vendors are on an accelerated build-up of products and services having learned from their North American counterparts and are rapidly building pan European offerings.
In addition, the research points up an emerging market across geographies.
ìThe market for single point HR services, namely recruiting and learning services, is much larger than previously estimated and more fragmented than expected,î Golas said, ìAt the same time, the corporate investment in each of these areas far exceeds what is under the auspices of the typical HR department. Together, this creates large untapped market, ripe for potential savings and consolidation into more comprehensive end-to-end solutions. The vendor response to this burgeoning market will likely vary, depending on the point of origin. Niche HR solution providers should seek to add administrative and consulting services while large multi-process vendors will probably look to acquire or build capabilities in these areas which are now largely underdeveloped.î
Human Resources Outsourcing Crossing the Chasm
According to New NelsonHall Global Market Forecast; Buyers of Human Resource Outsourcing Reveal a Market Place that Continues to Deliver Against Expectations
