HR outsourcing market to hit $10.9bn by 2026
NEW YORK, UNITED STATED — The HR outsourcing market is expected to grow by $10.9 billion from 2021 to 2026, achieving a compound annual growth rate (CAGR) of 4.87%.
Market research firm Technavio attributed this surge to the fierce competition, prompting vendors to engage in heightened advertising and promotional activities.
The digitization of HR outsourcing is the main catalyst driving this market expansion. Industrial processes are evolving, adopting technologies like IoT, cloud computing, big data, and augmented reality, resonating with the Industry 4.0 trend and sophisticated database management systems.
These tech innovations enhance organizational integration, drive cost efficiency, and boost productivity through HR outsourcing. As a result, significant market growth is projected during the forecast period.
An emerging trend underpinning this growth is the escalating use of recruitment analytics. Conversely, increasing dependence on outsourcing agencies may pose a challenge, potentially stunting market growth.
Technavio’s report identifies Accenture Plc, Adecco Group AG, Automatic Data Processing Inc., and Capgemini Service SAS as the forerunners likely to dominate the HR outsourcing market in the upcoming years.
