As per a report from Gartner, it is expected that human resource outsourcing would grow by 4.7% world over by the end of 2006. It is expected that the market for HR outsourcing would touch the figures of $24.6bn which represents an increase of about 4.7% from the figures of 2005.
The overall market is expected to reach around $134.7bn which represents an increase of about 8.3 % over the previous year figures. Since a long time HR has been identified as the major area for outsourcing in the areas of administration and payroll.
As per Gartner:
As a back-office function, aspects of HR are often deemed critical, yet non-core functions for outsourcing and are usually most companies’ first stop on the sourcing journey for BPO. Payroll outsourcing is also a key area for consideration among small and midsize businesses that are often underserved by larger, more-strategic forms of BPO.
