Global Mid-Market HR Outsourcing Market Will Reach $29 Billion by 2013

4 May 2009:

Mid-market HR outsourcing is currently dominated by benefits administration services in North America and payroll services across geographies. Mid-Market HR outsourcing will increasingly be driven by talent management services such as RPO, and expansion into wider multi-process HRO, and talent management functions will increasingly be outsourced alongside benefits administration and payroll services. Mid-Market organizations will increasingly require multi-country payroll and HRO services.

While the main market drivers are a combination of cost reduction, standardization and access to technology, other significant drivers include improved quality of data, better analytics, improved employee experience, improved employer compliance and the ability for managers to now focus on the more strategic aspects of HR.

Though the majority of mid-market HRO revenue is from U.S. based companies, Continental Europe and Asia Pac will see higher growth than North America as demand shifts from single process to multi-process HR BPO in those regions and mid-size organizations look to realize the benefits of outsourcing achieved by larger enterprise businesses.