Human Resource (HR) Outsourcing and Consultancy Service Market Report 2024

This Human Resource (HR) Outsourcing and Consultancy Service market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The human resource (HR) outsourcing and consultancy service market size has grown strongly in recent years. It will grow from $49.71 billion in 2023 to $53.8 billion in 2024 at a compound annual growth rate (CAGR) of 8.2%. The growth during the historic period can be attributed to factors such as increasing globalization, the rise of digital transformation initiatives, heightened concerns around data privacy, the growing adoption of artificial intelligence, and the increasing demand for outsourcing employee onboarding processes.

The human resource (HR) outsourcing and consultancy service market size is expected to see strong growth in the next few years. It will grow to $74.17 billion in 2028 at a compound annual growth rate (CAGR) of 8.4%. The growth during the forecast period is expected to be driven by the rise of remote work, an increasing number of startups, and the growing adoption of recruitment analytics and digital technologies. Key trends anticipated in this period include technological advancements, the integration of AI, the adoption of cloud-based HR management systems, hybrid workforce models, and enhanced cybersecurity solutions.

The growth of the human resource (HR) outsourcing and consulting services market is anticipated to be fueled by the rising number of startups. This increase in startups is driven by technological advancements, enhanced access to funding, and a growing demand for innovative and flexible work environments. For startups, HR outsourcing and consultancy services are essential for effectively managing HR functions, ensuring compliance, and allowing them to focus on core business activities while tapping into specialized expertise and resources. A report published by RSM UK in February 2024 highlighted that the UK experienced a significant 22% rise in new technology company incorporations in 2023, reaching a record high of 51,017, up from 41,972 the previous year. This growth underscores the resilience of the UK’s tech sector and indicates a strong demand for HR outsourcing and consulting services.

Key players in the human resource (HR) outsourcing and consulting services market are focusing on developing advanced solutions, such as comprehensive payroll services, to ensure accurate and timely employee compensation. These services cover the entire spectrum of payroll management tasks, including payroll processing, tax calculations, regulatory compliance, and benefits administration, guaranteeing that employees receive accurate and timely compensation. For example, in March 2024, ADI Langue, a Singapore-based IT outsourcing and recruitment company, launched its payroll outsourcing services. These services are characterized by customizable solutions designed to meet diverse business needs, scalability to support growth, and the use of advanced technology for efficient payroll management. Additionally, they prioritize compliance and data security, ensuring adherence to regulations and the protection of sensitive information. Clients benefit from dedicated support from a team of experts focused on addressing queries and enhancing the overall payroll experience.

In March 2023, Mercer, a U.S.-based financial services company, acquired Leapgen for an undisclosed amount. This acquisition is expected to enable Mercer to enhance its workforce solutions and improve employees' digital experiences. By leveraging Leapgen's expertise in digital HR strategy and transformation, Mercer aims to strengthen its HR transformation and workforce solutions capabilities. Leapgen specializes in providing strategic consulting services in HR technology and digital transformation.

Major companies operating in the human resource (HR) outsourcing and consultancy service market are Accenture plc, International Business Machines Corporation, Randstad N.V., Adecco Group AG, ManpowerGroup Inc., Infosys Limited, Automatic Data Processing Inc., Aon Hewitt, Wipro Limited, Robert Half International Inc., Insperity Inc., Acadia Healthcare Company Inc., Ceridian HCM Holding Inc., Oasis Outsourcing Holdings Inc., XcelHR, G&A Partners, Invedus, MSI Global Transformation Solutions, CPEhr, Astron Solutions, Liquid HR, Infiniti HR, Alliant HR Outsourcing.

North America was the largest region in the human resource (HR) outsourcing and consultancy service market in 2023. The regions covered in the human resource (HR) outsourcing and consultancy service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the human resource (HR) outsourcing and consultancy service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Human resource (HR) outsourcing and consultancy services involve external providers managing specific HR functions or offering expert guidance to organizations. HR outsourcing covers areas such as payroll, recruitment, benefits administration, and compliance, enabling businesses to concentrate on core operations. Consultancy services provide tailored advice on HR strategies, workforce development, and regulatory adherence.

Key categories of human resource (HR) outsourcing and consultancy services include payroll outsourcing, recruitment process outsourcing, and benefits administration outsourcing. Payroll outsourcing entails assigning employee compensation management to external providers. These services cater to small, medium, and large enterprises across various sectors, including healthcare and pharmaceuticals, information technology, financial services, manufacturing, retail, and consumer goods.

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

The human resource (HR) outsourcing and consultancy service market includes revenues earned by entities by providing services such as employee onboarding, performance management, HR strategy and planning, workforce analytics, legal support, and risk management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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