Gartner Research

Market Trends: Human Resources Business Process Outsourcing, Worldwide, 2013

Published: 27 August 2013

ID: G00248929

Analyst(s): Morgan Yeates


This report documents trends shaping the HR business process outsourcing market. Technology remains the primary driver, and buyers are more demanding than ever. Providers must align their product, sales and research strategies to these trends to win new clients and succeed in new markets.

Table Of Contents


Market Trends

  • Technology Trends: Technology Takes HR Toward a Paperless Administration Future
    • BPaaS Now Appears in All HR BPO Functions
    • PETS Have Become Differentiators
    • Four BPO Service Delivery Models Emerge
    • Technological Currency and Agility Become Selection Criteria
    • HR Administration Moves Closer Toward a Paperless Future
  • Provider Trends: Offering Scope Expands While Reaching New Markets
    • Providers Increase Vertical-Focused Sales and Services
    • Development of Analytics and Research Services Accelerates
    • Tax Compliance Morphs From Commodity to Differentiator
    • Business Consulting Services Increasingly Offered With Core Services
    • Market Bifurcates Into Advanced Versus Novice Buyers
    • Providers Focus Anew on the SMB Market
  • Market Structure Trends: Providers Solidify Their Global Reach
    • Acquisition and Partnership Quickly Expand Services and Reach
    • Bundling Enhances Individual Offerings
    • Enlarging Service Delivery Footprint Remains a Priority
  • Buyer Trends: Sophisticated "HR BPO 3.0" Buyers Comprise More of the Market
    • Demand Accelerates for Analytics Services
    • Advanced Reporting Becomes Normative
    • Demand for Proactive Ideation Remains Unmet
    • Buyers Perform Deeper Due Diligence
    • Buyers and Providers Make Up for Lost Time
    • Buyers Request Assistance With Standardized, Globalized Processes
    • MNCs Demand Global Service Management
  • Regional Trends: Emerging Market Growth Leapfrogs That of Established Markets
    • Regional Development Still Grows but Varies Widely
    • HR BPO Adoption in Emerging Markets Increases Steadily

Vendors to Watch

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