Everest Group Says HR Outsourcing will Grow 8-10% in 2011
Tuesday, April 5, 2011 |
This year, the multi-process Human Resources Outsourcing (MPHRO) will grow by 8-10 percent, mainly due to stronger economy and as contract activity bounces back. This is based on the Human Resources Outsourcing Annual Report 2011 by global services firm Everest Group.
Research Director Rajesh Ranjan said cost reduction is still the primary reason companies adopt human resources outsourcing, though technology access, keeping HR and business aligned, and managing compliance are becoming more crucial. Aside from the projected growth rate of the market, it is also expected that there will be increased adoption of MPHRO by industries like insurance and technology, as well as mid-market companies.
Report also reveals that North America is the no. 1 adopter while Europe accounts for 33 percent of MPHRO deals. On the global scale, India is the leading offshoring destination. Also, payroll processing and benefits are the most common functions included in human resources outsourcing deals.