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Worldwide and U.S. HR Management Services 2009-2013 Forecast

Published by: IDC

Published: Mar. 18, 2009 - 18 Pages


Table of Contents


Table of Contents

IDC Opinion

In This Study

Methodology

Situation Overview

Introduction: HR Services Market Overview

Figure: Human Resources Value Cycle

Market Overview

Economic Factors for HR Services

Figure: U.S. Unemployment Rate, January-December 2008

Current Situation

Table: Multifunction HR BPO Contracts Announced in 2007, 2008, and Early 2009

Figure: Worldwide HR Services BPO Contract Activity, 2004-2008

Competitive Trends

Table: Vendor News in HR and HR Services in 2008 and Early 2009

Future Outlook

Forecast and Assumptions

Worldwide HR Services

Table: Worldwide HR Management Services Spending by Services Type, 2008-2013 ($M)

Worldwide Processing Services

Worldwide Business Process Outsourcing

Worldwide Consulting Services

Assumptions

Table: Key Forecast Assumptions for the Worldwide and U.S. HR Management Services Markets, 2009-2013

U.S. HR Services

Table: U.S. HR Management Services Spending by Services Type, 2009-2013 ($M)

U.S. Processing Services

U.S. Business Process Outsourcing

U.S. Consulting Services

Market Context

Table: Worldwide HR Services Spending, 2006-2013: Comparison of March 2008 and March 2009 Forecasts ($B)

Figure: Worldwide HR Services Spending, 2006-2013: Comparison of March 2008 and March 2009 Forecasts

Essential Guidance

Actions to Consider

Learn More

Related Research

Methodology

Historical Market Values and Exchange Rates

Synopsis

Abstract

This IDC study contains a five-year forecast for the worldwide and U.S. markets for human resource management services, including discrete HR outsourcing (i.e., processing), HR consulting, and full-service HR outsourcing (i.e., business process outsourcing). In 2008, worldwide HR services spending grew 6.7% over 2007 in constant currency terms. Worldwide growth was lower than had been previously forecast due to the onset of the economic downturn and increased unemployment. Growth in spending in Asia/Pacific outpaced that in all other regions, which was 8.4% in 2008 over 2007. Spending in EMEA grew by 6.6% in 2008 over 2007. Spending in the Americas grew by 4.4%, where the strongest growth was seen in Latin America.

"Newer delivery models may threaten traditional outsourcing but they do not offload HR burden, merely IT burden," says Lisa Rowan, program director, HR, Learning and Talent Strategies for IDC. "Suppliers are advised to be aware of and plan for taking part in emerging models and channels. In addition, buyers will be looking to get back to basics and a good place to start is payroll, which buyers see as a good outsourcing candidate but are not already outsourcing. Suppliers that target the U.S. market need to be mindful of concerns buyers have on offshoring of HR functions."



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