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November 07, 2007

Outsourcing of HR Functions to Regain Momentum in 2008, according to Everest Research Institute

Outsourcing of human resource functions – including the most commonly outsourced functions of payroll, benefits, employee data management, information systems, and contact centers -- is expected to increase in 2008 after remaining relatively flat since 2005, according to the Everest Research Institute. While all market segments present significant growth potential, the Institute’s annual Human Resources Outsourcing (HRO) market study predicts mid-sized, North American and European companies will spark the growth. The Institute will hold a Webinar on November 6 at 9 a.m. CST to present study findings and insights.

According to the Institute, the cumulative total contract value of human resources outsourcing transactions reached US $21.2 billion in 2006 and is expected to be US $25.4 billion by the end of this year. The Institute’s study, Human Resources Outsourcing (HRO) Annual Report: November 2007, attributes future HRO growth to existing suppliers that have decreased transition costs and timeframes and are promoting standardized offerings. With the current penetration level of HRO being low in all market segments and across geographies, suppliers are focusing on the largely underserved mid-market and are offering compelling price points. According to the study, North American buyers account for more than 70 percent of HRO transactions, but Europe has seen increased deal signings over the past three years. Manufacturing, financial services and high-tech and telecom are the leading buyers of HRO overall.

The annual report is the first of a two-part study of the HRO market. The second part, the 2007 Global HRO Supplier Landscape, will be released in December.

The Webinar will take place on November 6, 2007, at 9 a.m. CST; 3 p.m. GMT; 8:30 p.m. IST. To register, please visit: www.everestgrp.com/Webinars.

For additional information and an extract of the HRO Annual Update, please visit www.outsourcing-center.com. You may also call 214-451-3110 to schedule a personal briefing appointment.

Posted by jbowles at November 7, 2007 08:29 PM