HRO: The New Outsourcing

Filed in archive Outsourcing Advisors on July 11, 2007

human resources outsourcing (HRO) is an emerging outsourcing function nowadays as more and more companies are adapting this kind of business strategy in their business. The emergence of such function could be shown in the figures relating to it.

Here are some of those figures:

-HRO is now worth $20 billion globally and is still growing
-Almost 50% of HRO business has an offshore component
-Only 18 buyers account for 25-27% of the big business

Aside from that, Gaurav Gupta recently completed a global study regarding the HRO sector. Here is an interesting excerpt from his study:

"Even though HRO deals are being signed mostly in US or Europe, 50% of these deals have some offshore component. "A major chunk of this is coming to India. And 26% of HRO transactions have over 50% of contracted services being provided from an offshore location."

It is interesting to see that before, HRO was regarded as something that would not prosper in the outsourcing field. Nowadays, it is regarded as the next big thing in outsourcing.

Really ironic.