Global HR Outsourcing Trends Handbook 2016

23 Nov 2016
by Anil Vijayan, Priyanka Mitra, Rajesh Ranjan

The Human Resource Outsourcing (HRO) market, which has traditionally been one of most outsourced business processes, grew at a rate of ~8% in 2015. Within the broader market, payroll outsourcing continued to be the largest market segment while RPO emerged to be the least commoditized and fastest growing market. North America remains the largest contributor to the HRO market, however, there is a rising interest from emerging economies of Asia Pacific and Latin America. Focus on technology and innovation has increased, primarily on cloud / BPaaS, analytics, social & mobility, and to a lesser extent, Robotic Process Automation (RPA).

In this research, we analyze the HRO market across following key themes:

  • Market overview detailing the MPHRO and SPHRO market landscape
  • An overview of the key trends in the HRO market
  • Buyer feedback trends and analysis


This report provides a comprehensive overview on the state of the HRO market - both single- and multi-process. The report also identifies key business drivers trends, and the evolving needs of the buyers in the market.

Some of the key findings are:

  • Cost reduction and process efficiency continue to be the major driving forces of the HRO market. It is also driven by the need to gain access to technology capability and domain expertise. Employee experience improvement is likely to become a key driver in the near-to-mid term
  • There is a marked shift in the way enterprises are approaching their HRO engagements. Some trends that are being witnessed are:
    • An increased adoption of multi-country engagements is seen across most segments in HRO, to gain economies of scale and consistent levels of service across geographies
    • Software-as-a-service / Business Process-as-a-Service continues to be adopted aggressively by HRO buyers, due to increased confidence in the model
    • Buyers are also looking at holistic talent management solutions that will help them manage both permanent and contingent talent, especially during acquisition
  • While service providers are able to be perform up to the standards in most metrics, areas such as proactiveness in problem identification & solving as well as innovation are major pain points in both single-process HRO and multi-process HRO contexts


Human Resources Outsourcing (HRO)


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