HRO BPO Global Market Report 2024

The hro bpo market size has grown steadily in recent years. It will grow from $98.41 billion in 2023 to $102.08 billion in 2024 at a compound annual growth rate (CAGR) of 3.7%. The growth observed during the historical period can be attributed to several factors, including the pursuit of cost efficiency, a strategic focus on core competencies, initiatives related to globalization and expansion, efforts in compliance and risk management, the pursuit of scalability and flexibility in operations, and a heightened emphasis on enhancing the overall employee experience.

The hro bpo market size is expected to see steady growth in the next few years. It will grow to $122 billion in 2028 at a compound annual growth rate (CAGR) of 4.6%. The anticipated growth in the forecast period can be attributed to various factors, including the implementation of employee well-being programs, heightened concerns regarding data security and privacy, strategic workforce planning initiatives, increased support for remote work, enhanced agility in HR operations, and the adoption of global talent management practices. Key trends expected in the forecast period include the integration of technology and automation in HR processes, a continued focus on improving the overall employee experience, the adoption of flexible service delivery models, a push towards digital transformation in HR practices, and the implementation of agile workforce management strategies. These trends reflect the evolving landscape of human resource outsourcing with a strong emphasis on leveraging technology and adapting to the changing needs of the workforce.

The anticipated growth of the HRO BPO market is attributed to the increasing integration of cloud-based services. Cloud services encompass hardware, software, or platforms provided by external suppliers and accessed online by customers. Cloud-based HR systems facilitate various HR operations, including applicant handling, resume searches, report generation, payroll computation, performance review tracking, and employee data maintenance. The adoption of cloud-based services in HR operations is eliminating cumbersome paperwork. This integration is expected to drive the demand for Human Resources Outsourcing (HRO) Business Process Outsourcing (BPO) services. For example, in 2022, spending on compute and storage infrastructure items for cloud deployments increased by 17.2% year over year to $18.3 billion in the first quarter of 2022, according to a report by the International Data Corporation. The growing integration of cloud-based services is a significant factor propelling the growth of the HRO BPO market.

The growth of the HRO BPO market is further fueled by the increasing demand for work-life balance and flexibility from the workforce. Work-life balance and flexibility allow employees to effectively manage personal and professional responsibilities, creating a healthy equilibrium. HRO BPO providers contribute to this by developing and implementing policies, fostering open communication, providing training, and integrating work-life balance considerations into performance evaluations. In a 2022 Career Pulse Survey by FlexJobs Corporation, 63% of respondents expressed a preference for better work-life balance over higher pay. This shift in workforce priorities is contributing to the growth of the HRO BPO market.

Strategic partnerships are a key focus for major companies in the HRO BPO market, aiming to gain a competitive edge. These partnerships serve various purposes, including strategic alliances, client collaboration, vendor partnerships, and more. For instance, in February 2021, Transcosmos Inc. partnered with Works Human Intelligence Co. Ltd. to establish a business process outsourcing (BPO) service for the HR department. This collaboration combines Transcosmos' BPO services with WHI's integrated HR system, 'COMPANY,' offering comprehensive BPaaS (Business Process as a Service) to help organizations enhance operational efficiency and mitigate risks.

The development of advanced HRO BPO services is a strategic focus for major companies in the market. Advanced HRO BPO services leverage cutting-edge solutions to optimize HR functions through technology-driven processes, ensuring efficient talent management, payroll processing, and compliance. For example, LiquidX Inc., in partnership with Broadridge Financial Solutions, developed InBlock TradeOps, a business process outsourcing (BPO) service, to automate and optimize payroll processes for HRO BPO providers. This technology-driven solution streamlines operations in the trade finance industry.

In March 2022, G&A Partners acquired Employer Advantage, a move that enhances G&A Partners' HR outsourcing and administrative services. The acquisition is expected to facilitate a seamless transition by retaining Employer Advantage's leadership team and entire staff. Employer Advantage is known for providing comprehensive human resource services in the United States.

Major companies operating in the hro bpo market report are Cielo Inc., International Business Machines Corporation, Mercer LLC, CGI Inc., Paychex Inc., Intuit Inc., Infosys Limited, Ceridian HCM Inc., HR Service Inc., General Outsourcing Co. Ltd., Aon PLC, Adecco Group, Automatic Data Processing Inc., Capita plc, Ultimate Kronos Group, Accenture PLC, ADP LLC, Equifax Inc., Kronos Inc., NGA Human Resources, Randstad NV, Alight Solutions LLC, Empower Retirement LLC., Fidelity Investments, HCL Technologies Ltd., Hewlett Packard Enterprise Company, NorthgateArinso Inc., Wipro Limited, Genpact Limited, Zalaris ASA.

North America was the largest region in the HRO BPO market in 2023. The regions covered in the hro bpo market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hro bpo market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main types of HRO BPO include Professional Employer Organizations (PEOs) and Administrative Service Organizations (ASOs). A PEO, or professional employer organization, represents a full-service co-employment human resource outsourcing model. Various services within HRO BPO include Professional Outsourcing (PO), Business Process Outsourcing (BAO), Multi-Process Human Resources Outsourcing (MPHRO), and Recruitment Process Outsourcing (RPO). These services find applications in various industries such as banking, financial services and insurance (BFSI), healthcare, information technology (IT), hospitality, retail, and others.

The HRO BPO market research report is one of a series of new reports that provides HRO BPO market statistics, including HRO BPO industry global market size, regional shares, competitors with HRO BPO market share, detailed HRO BPO market segments, market trends, and opportunities, and any further data you may need to thrive in the HRO BPO industry. This HRO BPO market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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