Major players in the hro bpo market are Cielo Inc., International Business Machines Corporation, Mercer LLC, CGI Inc. (Conseillers en gestion et informatique), Paychex Inc., Intuit Inc., Infosys Limited, Ceridian HCM Inc., HR Service Inc., General Outsourcing Co. Ltd., Aon Plc, Adecco Group, Automatic Data Processing, Inc., Capita plc., and Ultimate Kronos Group.
The global HRO BPO market is expected to grow from $94.34 billion in 2022 to $98.34 billion in 2023 at a compound annual growth rate (CAGR) of 4.1%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The HRO BPO market is expected to reach $112.50 billion in 2027 at a CAGR of 3.4%.
The human resource outsourcing (HRO) BPO market includes revenues earned by entities by providing hiring and employee counseling services, employee time tracking services, and other related services.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.
Human resource outsourcing (HRO) BPO refers to a practice where an organization contracts a third-party company to manage its human resources functions. Companies use human resource outsourcing to reduce costs and free up human resource specialists to concentrate on more strategic initiatives.
North America was the largest region in the HRO BPO market in 2022. The regions covered in HRO BPO report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The main types of HRO BPO are professional employer organizations (PEOS) and administrative service organizations (ASOS).A PEO, or professional employer organization, refers to a full-service co-employment human resource outsourcing model.
The various services involved are PO, BAO, MPHRO, and RPO which are used for banking, financial services and insurance (BFSI), healthcare, it, hospitality, retail and other applications.
The growing integration of cloud-based services is expected to boost the growth of the HRO BPO market going forward.Cloud services refer to hardware, software, or platforms that are hosted by outside suppliers and made accessible to customers online.
A cloud-based HR system is used to handle applicants, look up resumes, generate reports, compute payroll, keep track of performance reviews, and retain employee data.Cloud-based HR aids in the elimination of the mountains of paperwork associated with a company’s fundamental HR operations.
Hence, the growing integration of cloud-based services will rise the demand for HRO BPO services. For instance, according to a report published by the International Data Corporation, a US-based provider of market intelligence, advisory services, and events for the information technology industry, in 2022, For cloud deployments, including dedicated and shared environments, spending on compute and storage infrastructure items increased by 17.2% year over year to $18.3 billion in the first quarter of 2022. (1Q22). Moreover, dedicated cloud infrastructure spending increased by 20.5% from the same quarter last year to $5.9 billion in Q22. 47.8% of the customized cloud infrastructure was set up on customer premises. Therefore, the growing integration of cloud-based services is driving the growth of the HRO BPO market.
Product innovation is the key trend gaining popularity in the HRO BPO market.Major companies operating in the HRO BPO market are focusing on developing innovative products.
For instance, in August 2020, Unicorn HRO, a US-based company offering fully integrated and configurable human resources, and payroll solutions, launched a new payroll and human resources (HR) service for non-profit organizations.This service is unique as it makes use of Unicorn HRO’s iCON platform, an integrated cloud-based solution that centrally manages human resources tasks like talent management, payroll, benefits, and time and attendance.
The new service is anticipated to simplify the coordination of payroll, tax services, and other HR duties like workforce management, time and attendance, and ACA compliance for non-profits. Additionally, personnel can examine and control their information, such as benefits, timesheets, and pay stubs, by having extensive employee self-service capabilities available.
In March 2022, G&A Partners, a US-based provider of HR outsourcing and administrative services, acquired Employer Advantage for an undisclosed amount.Through the acquisition, G&A Partners is expected to retain Employer Advantage’s leadership team and the entire staff.
This should enable the company to utilize established connections and make the transition as seamless as possible. Employer Advantage is a US-based provider of complete human resource services.
The countries covered in the HRO BPO market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
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.
The HRO BPO market research report is one of a series of new reports that provides HRO BPO market statistics, including HRO BPO industry global market size, regional shares, competitors with HRO BPO market share, detailed HRO BPO market segments, market trends, and opportunities, and any further data you may need to thrive in the HRO BPO industry. This HRO BPO market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.