How large is the human resource (hr) outsourcing and consultancy service market, and what is its growth trajectory?
The human resource (HR) outsourcing and consultancy service market size has grown strongly in recent years. It will grow from $53.8 billion in 2024 to $58.39 billion in 2025 at a compound annual growth rate (CAGR) of 8.5%. The growth in the historic period can be attributed to increasing globalization, growth in digital transformation initiatives, increasing concerns over data privacy, growth in the use of artificial intelligence, and increasing demand for outsourcing employee onboarding.
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 $80.21 billion in 2029 at a compound annual growth rate (CAGR) of 8.3%. The growth in the forecast period can be attributed to growing remote work, increasing number of startups, growing adoption of recruitment analytics, growing adoption of recruitment analytics, and growing adoption of digital technologies. Major trends in the forecast period include technological advancements, the adoption of AI, cloud-based HR management systems, hybrid workforce models, and cybersecurity solutions.
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What are the key forces behind the human resource (hr) outsourcing and consultancy service market’s growth in recent years?
The increasing number of startups is expected to propel the growth of the human resource (HR) outsourcing and consulting services market going forward. The number of startups is increasing due to advancements in technology, increased access to funding, and a growing desire for innovative and flexible work environments. HR outsourcing and consultancy services are crucial for startups to efficiently manage HR functions, ensure compliance, and focus on core business activities while accessing specialized expertise and resources. For instance, in February 2024, according to a report published by RSM UK, a UK-based accounting and auditing company, the UK saw a remarkable 22% increase in new technology company incorporations in 2023, reaching a record high of 51,017. This surge, up from 41,972 the previous year, underscores the resilience of the UK’s tech sector. Therefore, the increasing number of startups drives the human resource (HR) outsourcing and consulting service market.
What are the major segments of the human resource (hr) outsourcing and consultancy service market?
The human resource (HR) outsourcing and consultancy service market covered in this report is segmented –
1) By Type: Payroll Outsourcing, Recruitment Process Outsourcing, Benefits Administration Outsourcing, Others Types
2) By Application: Small Enterprise, Large Enterprise, Medium Enterprise
3) By Industry Vertical: Healthcare And Pharmaceuticals, Information Technology, Financial Services, Manufacturing, Retail And Consumer Goods
Subsegments:
1) By Payroll Outsourcing: Full Payroll Processing Services, Payroll Tax Compliance Services, Payroll Reporting And Analytics
2) By Recruitment Process Outsourcing: End-To-End Recruitment Services, Talent Sourcing And Screening, Onboarding Services
3) By Benefits Administration Outsourcing: Employee Benefits Enrollment Services, Health And Wellness Program Management, Retirement Plan Administration
4) By Other Types: Training And Development Outsourcing, HR Compliance And Regulatory Services, Performance Management Services, Employee Relations And Engagement Services
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Which companies dominate the human resource (hr) outsourcing and consultancy service market?
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
What major trends will shape the human resource (hr) outsourcing and consultancy service market during the forecast period?
Major companies operating in the human resource (HR) outsourcing and consultancy service market are developing technologically advanced services, such as comprehensive payroll services, to ensure accurate and timely employee compensation. Comprehensive payroll services encompass the full spectrum of payroll management tasks, including payroll processing, tax calculations, compliance with regulations, and benefits administration, ensuring accurate and timely employee compensation. For instance, in March 2024, ADI Langue, a Singapore-based IT outsourcing and recruitment company, launched payroll outsourcing services. The services are known for their customizable solutions tailored to diverse business needs, scalability to support organizational growth, and use of advanced technology for accurate and efficient payroll management. They prioritize compliance and data security, ensuring adherence to regulations and protection of sensitive information. Clients also benefit from dedicated support from a team of experts committed to resolving queries and enhancing the overall payroll experience.
What are the key regional dynamics of the human resource (hr) outsourcing and consultancy service market, and which region leads in market share?
North America was the largest region in the human resource (HR) outsourcing and consultancy service market in 2024. 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.
What Does The Human Resource (HR) Outsourcing And Consultancy Service Market Report 2025 Offer?
The human resource (hr) outsourcing and consultancy service market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Human resource (HR) outsourcing and consultancy services involve external providers managing specific HR functions or offering expert guidance to organizations. HR outsourcing handles tasks such as payroll, recruitment, benefits administration, and compliance, allowing businesses to focus on core activities. Consultancy services offer specialized advice on HR strategies, workforce development, and regulatory compliance.
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