Human Resource Outsourcing (HRO)

Human Resource Outsourcing (HRO)

Global Human Resource Outsourcing (HRO) Market to Reach $53.2 Billion by 2027

Amid the COVID-19 crisis, the global market for Human Resource Outsourcing (HRO) estimated at US$34.8 Billion in the year 2020, is projected to reach a revised size of US$53.2 Billion by 2027, growing at a CAGR of 6.2% over the analysis period 2020-2027. Payroll Services, one of the segments analyzed in the report, is projected to record a 5.7% CAGR and reach US$25.4 Billion by the end of the analysis period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the Benefits Administration Services segment is readjusted to a revised 7% CAGR for the next 7-year period.

The U.S. Market is Estimated at $10.2 Billion, While China is Forecast to Grow at 6% CAGR

The Human Resource Outsourcing (HRO) market in the U.S. is estimated at US$10.2 Billion in the year 2020. China, the world`s second largest economy, is forecast to reach a projected market size of US$9.5 Billion by the year 2027 trailing a CAGR of 6% over the analysis period 2020 to 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 5.7% and 5.4% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 5.9% CAGR.

Education & Training Services Segment to Record 6% CAGR

In the global Education & Training Services segment, USA, Canada, Japan, China and Europe will drive the 6.2% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$2.7 Billion in the year 2020 will reach a projected size of US$4 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$6 Billion by the year 2027.

Select Competitors (Total 188 Featured) -

  • Accenture Plc
  • ADP LLC
  • Aon Hewitt
  • Ceridian HCM, Inc.
  • CGI Group, Inc.
  • Cielo, Inc.
  • Equifax, Inc.
  • General Outsourcing Co., Ltd.
  • IBM Corp.
  • Infosys BPM Ltd.
  • Intuit, Inc.
  • Kronos, Inc.
  • Mercer, LLC
  • NGA Human Resources
  • Paychex, Inc.
  • Randstad Holding NV
  • The ADECCO Group
  • Ultimate Software Group, Inc.


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I. METHODOLOGY
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
Influencer Market Insights
World Market Trajectories
Recent Market Activity
A Prelude
HRO - A Rapidly Growing BPO Segment
Snapshots
Growth Drivers
Growth Restraints
Market Outlook
Growth Opportunities in Service Segments
Emerging Markets to Drive Future Growth
Cost Reduction: Finding Favor Again in Difficult Times
Need for Regulatory Compliance Drives Adoption of HRO Services
Lowering Risk Levels & Simpler HRO Engagements - Key Growth Drivers
Multi-Process HRO (MPHRO): Favorable Prospects in the Long Run
Shift towards Cloud-based Platforms Drives MPHRO Market
More Organizations Gravitate towards HR Outsourcing
Factors Creating Need for HR Outsourcing
Future of HR Outsourcing
Key Considerations
Sourcing Strategy/Model: Means to Achieve Business Process
Human Resource Outsourcing (HRO) – Global Key Competitors Percentage Market Share in 2022 (E)
Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)
Impact of Covid-19 and a Looming Global Recession
2. FOCUS ON SELECT PLAYERS
Accenture Plc (Ireland)
Adecco Group AG (Switzerland)
ADP LLC (USA)
Aon Hewitt (USA)
Cielo, Inc. (USA)
Ceridian HCM, Inc. (USA)
CGI Group, Inc. (Canada)
Equifax, Inc. (USA)
General Outsourcing Co., Ltd. (Thailand)
Infosys BPM Ltd. (India)
International Business Machines Corporation (USA)
Intuit, Inc. (USA)
Kronos, Inc. (USA)
Mercer, LLC (UK)
NGA Human Resources (UK)
Paychex, Inc. (USA)
Randstad Holding NV (The Netherlands)
Ultimate Software Group, Inc. (USA)
3. MARKET TRENDS & DRIVERS
Noteworthy Trends Influencing the HR Outsourcing Market
Continuous Adoption of Services Propels HRO Industry
Cloud - The Preferred Platform for HRO
BPaaS - A Growing Trend
Cloud-Based Recruitment Software Rises in Popularity
HRO Analytics Gain Prominence in HR Management & Administration
Predictive Analytics - An Indispensable tool for HR
Robotic Automation Makes In Roads in HRO Industry
Trend towards Process Convergence
Moving to a 'Transformational-Transfer' Model
Focus Grows on Small and Mid-Size Companies
Select HR Outsourcing Trends Related to Small Businesses
HR BPO Redefines HR Profession
End-to-End Services: Rise in HRO
Demographic Changes Support HRO Growth
Selective Approach Finds Favor
Offshore HR BPO: Driving Cost-Effectiveness
Focus on Business Process Improvement Gains Momentum
PEO Concept Gains Strength
Benefits and Drawbacks of PEO
Recruitment Process Outsourcing - Gaining Wider Attention
Factors Driving Growth in the RPO Market
Key Recruitment Process Functions Outsourced by Order of Importance
RPO Sector Registers Growth in Number of Deals
Offshoring of RPO Services Picks Up Pace
Talent Acquisition - Changing Definition of RPOs
Digitization of Talent Acquisition Process
Payroll Outsourcing Services Rise in Adoption
Multi-Country Payroll Outsourcing - A High Growth Market
Benefits Administration: Offering Potential Growth Opportunities for Outsourcing
Trend towards Health & Welfare Services Drives Growth in BAO
Workforce Management Outsourcing Gains Pace
Learning Outsourcing Services - Fulfilling Training Requirements
Market Challenges
Challenges in HR Transformation
HRMS: A Competitor for HRO Market
4. GLOBAL MARKET PERSPECTIVE
TABLE 1: World Recent Past, Current & Future Analysis for Human Resource Outsourcing (HRO) by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2020 through 2027 and % CAGR
TABLE 2: World Historic Review for Human Resource Outsourcing (HRO) by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 3: World 15-Year Perspective for Human Resource Outsourcing (HRO) by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets for Years 2012, 2021 & 2027
TABLE 4: World Recent Past, Current & Future Analysis for Payroll Services by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2020 through 2027 and % CAGR
TABLE 5: World Historic Review for Payroll Services by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 6: World 15-Year Perspective for Payroll Services by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2012, 2021 & 2027
TABLE 7: World Recent Past, Current & Future Analysis for Benefits Administration Services by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2020 through 2027 and % CAGR
TABLE 8: World Historic Review for Benefits Administration Services by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 9: World 15-Year Perspective for Benefits Administration Services by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2012, 2021 & 2027
TABLE 10: World Recent Past, Current & Future Analysis for Education & Training Services by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2020 through 2027 and % CAGR
TABLE 11: World Historic Review for Education & Training Services by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 12: World 15-Year Perspective for Education & Training Services by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2012, 2021 & 2027
TABLE 13: World Recent Past, Current & Future Analysis for Recruitment Process Outsourcing by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2020 through 2027 and % CAGR
TABLE 14: World Historic Review for Recruitment Process Outsourcing by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 15: World 15-Year Perspective for Recruitment Process Outsourcing by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2012, 2021 & 2027
TABLE 16: World Recent Past, Current & Future Analysis for Other Service Types by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2020 through 2027 and % CAGR
TABLE 17: World Historic Review for Other Service Types by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 18: World 15-Year Perspective for Other Service Types by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2012, 2021 & 2027
TABLE 19: World Human Resource Outsourcing (HRO) Market Analysis of Annual Sales in US$ Million for Years 2012 through 2027
Market Outlook
III. MARKET ANALYSIS
UNITED STATES
Human Resource Outsourcing (HRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)
TABLE 20: USA Recent Past, Current & Future Analysis for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
TABLE 21: USA Historic Review for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 22: USA 15-Year Perspective for Human Resource Outsourcing (HRO) by Service Type - Percentage Breakdown of Value Sales for Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types for the Years 2012, 2021 & 2027
CANADA
TABLE 23: Canada Recent Past, Current & Future Analysis for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
TABLE 24: Canada Historic Review for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 25: Canada 15-Year Perspective for Human Resource Outsourcing (HRO) by Service Type - Percentage Breakdown of Value Sales for Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types for the Years 2012, 2021 & 2027
JAPAN
Human Resource Outsourcing (HRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)
TABLE 26: Japan Recent Past, Current & Future Analysis for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
TABLE 27: Japan Historic Review for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 28: Japan 15-Year Perspective for Human Resource Outsourcing (HRO) by Service Type - Percentage Breakdown of Value Sales for Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types for the Years 2012, 2021 & 2027
CHINA
Human Resource Outsourcing (HRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)
TABLE 29: China Recent Past, Current & Future Analysis for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
TABLE 30: China Historic Review for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 31: China 15-Year Perspective for Human Resource Outsourcing (HRO) by Service Type - Percentage Breakdown of Value Sales for Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types for the Years 2012, 2021 & 2027
EUROPE
Human Resource Outsourcing (HRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)
TABLE 32: Europe Recent Past, Current & Future Analysis for Human Resource Outsourcing (HRO) by Geographic Region - France, Germany, Italy, UK and Rest of Europe Markets - Independent Analysis of Annual Sales in US$ Million for Years 2020 through 2027 and % CAGR
TABLE 33: Europe Historic Review for Human Resource Outsourcing (HRO) by Geographic Region - France, Germany, Italy, UK and Rest of Europe Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 34: Europe 15-Year Perspective for Human Resource Outsourcing (HRO) by Geographic Region - Percentage Breakdown of Value Sales for France, Germany, Italy, UK and Rest of Europe Markets for Years 2012, 2021 & 2027
TABLE 35: Europe Recent Past, Current & Future Analysis for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
TABLE 36: Europe Historic Review for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 37: Europe 15-Year Perspective for Human Resource Outsourcing (HRO) by Service Type - Percentage Breakdown of Value Sales for Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types for the Years 2012, 2021 & 2027
FRANCE
Human Resource Outsourcing (HRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)
TABLE 38: France Recent Past, Current & Future Analysis for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
TABLE 39: France Historic Review for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 40: France 15-Year Perspective for Human Resource Outsourcing (HRO) by Service Type - Percentage Breakdown of Value Sales for Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types for the Years 2012, 2021 & 2027
GERMANY
Human Resource Outsourcing (HRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)
TABLE 41: Germany Recent Past, Current & Future Analysis for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
TABLE 42: Germany Historic Review for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 43: Germany 15-Year Perspective for Human Resource Outsourcing (HRO) by Service Type - Percentage Breakdown of Value Sales for Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types for the Years 2012, 2021 & 2027
ITALY
TABLE 44: Italy Recent Past, Current & Future Analysis for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
TABLE 45: Italy Historic Review for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 46: Italy 15-Year Perspective for Human Resource Outsourcing (HRO) by Service Type - Percentage Breakdown of Value Sales for Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types for the Years 2012, 2021 & 2027
UNITED KINGDOM
Human Resource Outsourcing (HRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)
TABLE 47: UK Recent Past, Current & Future Analysis for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
TABLE 48: UK Historic Review for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 49: UK 15-Year Perspective for Human Resource Outsourcing (HRO) by Service Type - Percentage Breakdown of Value Sales for Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types for the Years 2012, 2021 & 2027
REST OF EUROPE
TABLE 50: Rest of Europe Recent Past, Current & Future Analysis for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
TABLE 51: Rest of Europe Historic Review for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 52: Rest of Europe 15-Year Perspective for Human Resource Outsourcing (HRO) by Service Type - Percentage Breakdown of Value Sales for Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types for the Years 2012, 2021 & 2027
ASIA-PACIFIC
Human Resource Outsourcing (HRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)
TABLE 53: Asia-Pacific Recent Past, Current & Future Analysis for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
TABLE 54: Asia-Pacific Historic Review for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 55: Asia-Pacific 15-Year Perspective for Human Resource Outsourcing (HRO) by Service Type - Percentage Breakdown of Value Sales for Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types for the Years 2012, 2021 & 2027
REST OF WORLD
TABLE 56: Rest of World Recent Past, Current & Future Analysis for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
TABLE 57: Rest of World Historic Review for Human Resource Outsourcing (HRO) by Service Type - Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2012 through 2019 and % CAGR
TABLE 58: Rest of World 15-Year Perspective for Human Resource Outsourcing (HRO) by Service Type - Percentage Breakdown of Value Sales for Payroll Services, Benefits Administration Services, Education & Training Services, Recruitment Process Outsourcing and Other Service Types for the Years 2012, 2021 & 2027
IV. COMPETITION

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