IDC forecasts the European HR services market to grow from $20.2 billion in 2001 to $31.2 billion in 2005 at a compound annual growth rate (CAGR) of 11.6%. According to Mike Friend, senior analyst at IDC, skills shortage and competitive pressures are forcing senior executives to evaluate the benefits of outsourcing administrative and supportive tasks and free HR departments on activities that will enable the organisation to achieve its strategic goals. Mike has identified web-enabling, e-learning and knowledge management as main technologies that will enhance HR departments. Mike Head, business development director at Pecaso commented on the IDC results:
ìIt is clear that HR departments are finally starting to understand the benefits technology can bring to their work, but still there is a long way to go. Our recent research showed that less than a quarter (24%) of HR managers cite strategy as the most valuable part of their service. I believe that the overload with the administrative tasks contributes to undermining the greater value HR can offer. We discovered that one in five (21%) HR managers were unhappy with the level of administration at work. 48% of them admitted that they record skills and competencies manually. Whatís even worse, 30% claimed they spent over a quarter of their time at work re-keying information!
The HR department is like the customer services department for employees, and as such has a clear strategic role. It is very concerning that the vast majority of HR managers feel unappreciated. However, IT should go further than that. It should be able to integrate a set of strategies designed to acquire, manage and optimise the workforce which include processes such as competency/skills management, succession planning and team management. Unfortunately, this will not happen until businesses stop treating HR as the Cinderella of IT spend.î
www.emea.idc.com
Latest IDC report forecasts significant growth in HR services market
Mike Head - business development director - Pecaso