Latest News- Human Resource Outsourcing (HRO) Market: Large enterprises is expected to lead the End-user segment during 2025-2029

The Human Resource Outsourcing (HRO) Market is being driven by Digitization of human resource outsourcing

The Human Resource Outsourcing (HRO) Market is expected to grow at a CAGR of 5.3% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 14.1 billion. In today's business landscape, the complexities and volumes of workforce data have grown exponentially, necessitating the outsourcing of HR functions to specialized service providers through Human Resource Outsourcing (HRO). Advanced IT solutions, such as data analytics, are utilized to effectively manage HR data and gain valuable insights. Structured data enables organizations to identify top talent through data-driven recruitment strategies. Analytical tools offer HR executives quick, data-driven insights for efficient recruitment management. The adoption of data analytics solutions is on the rise, as they employ statistical and scientific methods to derive meaningful insights from raw HR data. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• End-user
  • Large enterprises
  • SMEs
• Service
  • PO
  • BAO
  • MPHRO
  • RPO
  • LSO
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • APAC
    • China
    • India
    • Japan
  • South America
    • Brazil
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Digitization of human resource outsourcing
• Growing demand for neo-sourcing
• Need to improve HR value chain

However, the market also witnesses some limitations, which are as follows:

• Increased dependence on outsourcing agencies
• Delay in addressing employee issues
• Regulatory compliance

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Market Scope in Human Resource Outsourcing (HRO) Market Research Report

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Research Analysis Overview

In the Human Resource Outsourcing (HRO) market, businesses engage third-party organizations to handle HR tasks such as performance management functions and employee performance evaluation. Specialized expertise, efficiency, scalability, and technological advancements like IT, IoT, cloud computing, big data, social media, and digitization drive market growth. Sectors like IT and hospitality benefit significantly. Recruitment analytics, outsourcing agencies, SLAs, benefit administration outsourcing, learning services outsourcing, BSFI, payroll outsourcing, and technological innovations like augmented reality offer market development opportunities. Talent acquisition and employee engagement are key focus areas.

Market Research Overview

The Human Resource Outsourcing (HRO) market encompasses third-party organizations that offer HR functions as an external service, enabling businesses to delegate HR tasks and operations to professional experts. These external HR professionals specialize in performance management functions, including performance appraisal systems and feedback mechanisms, ensuring optimal employee performance. The market's expansion is driven by several factors, including the increasing demand for specialized HR expertise and the need for efficient and cost-effective HR solutions. Additionally, the growing trend towards digital transformation and the implementation of advanced HR technologies are fueling market growth. Furthermore, the lack of in-house HR expertise in various organizations, particularly in the public sector, is leading to increased outsourcing of HR functions to external service providers.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/