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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The market is segmented based on
According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows:
However, the market also witnesses some limitations, which are as follows:
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Market Scope |
|
Report Coverage |
Details |
Page number |
214 |
Base year |
2024 |
Historic period |
2019-2023 |
Forecast period |
2025-2029 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.3% |
Market growth 2025-2029 |
USD 14.1 billion |
Market structure |
market_structure.ucfirst |
YoY growth 2024-2025(%) |
5.0 |
Key countries |
US, Canada, China, Germany, India, UK, Japan, France, Brazil, and Italy |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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.
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
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