Worldwide and U.S. HR Management Services 2009-2013 Forecast

This IDC study contains a five-year forecast for the worldwide and U.S. markets for human resource management services, including discrete HR outsourcing (i.e., processing), HR consulting, and full-service HR outsourcing (i.e., business process outsourcing). In 2008, worldwide HR services spending grew 6.7% over 2007 in constant currency terms. Worldwide growth was lower than had been previously forecast due to the onset of the economic downturn and increased unemployment. Growth in spending in Asia/Pacific outpaced that in all other regions, which was 8.4% in 2008 over 2007. Spending in EMEA grew by 6.6% in 2008 over 2007. Spending in the Americas grew by 4.4%, where the strongest growth was seen in Latin America.

"Newer delivery models may threaten traditional outsourcing but they do not offload HR burden, merely IT burden," says Lisa Rowan, program director, HR, Learning and Talent Strategies for IDC. "Suppliers are advised to be aware of and plan for taking part in emerging models and channels. In addition, buyers will be looking to get back to basics and a good place to start is payroll, which buyers see as a good outsourcing candidate but are not already outsourcing. Suppliers that target the U.S. market need to be mindful of concerns buyers have on offshoring of HR functions."