NelsonHall’s “HR Outsourcing Confidence Index: July 2014” report is one of a series of quarterly reports for tracking levels of supplier confidence and trends in HR outsourcing, designed for:
HR executives monitoring the maturity of, and developments in, HR outsourcing
Sourcing managers investigating sourcing developments within HR outsourcing
Vendor marketing, sales and business managers monitoring HR outsourcing trends and developments, and developing strategies to target HR outsourcing opportunities
Financial analysts and investors specializing in the IT services and BPO sector.
Scope of the Report
NelsonHall’s HR Outsourcing Confidence Index is a quarterly index of confidence, to monitor changes in industry confidence in the global HR outsourcing market.
The objectives of the quarterly “HRO Confidence Index” are to identify:
Whether the demand for HR outsourcing services has strengthened or softened in the past quarter
Expectations of how the relative demand for HR outsourcing services will change over the coming year
The factors that are influencing change in demand
The characteristics of contracts that are showing relatively high and low acceptance
To produce an “HR outsourcing index of confidence” that will be widely reported and used in reference to the HR outsourcing market.
The geographic scope of the research is global.
Within HR outsourcing, the scope of outsourced processes includes:
Recruitment process outsourcing
Multi-process HR outsourcing.
Key Findings & Highlights
NelsonHall’s “HR Outsourcing Confidence Index: July 2014” report is one of a series of quarterly reports for tracking levels of supplier confidence and trends in HR outsourcing.
The report is free of charge to subscribers to one or more of NelsonHall’s HR outsourcing programs and to companies that participate in the survey.
Key highlights include:
Average revenue growth rate for HR outsourcing services in Q1 2014 marginally increased to 28%
By service line, payroll and RPO continue to be the top two performing services; despite a marginal decline, revenue growth for multi-process HRO remained high; learning services has remained stable quarter-on-quarter, following a slow upward trajectory throughout 2013; benefits administration dropped substantially since last quarter
The proportion of platform-based activity remained steady for the second consecutive quarter at 75%
The level of multi-country HRO activity remains on a par with the historical average of 33%, with the average number of countries supported steady at 14
Service delivery remains predominantly onshore, but the use of offshoring is much more prevalent than five years ago
There were three factors equally influencing HR outsourcing contract signings, including existing clients expanding the scope of their contracts to new activities.