HR Management Services Enjoyed Solid Growth in 2002 and Opportunities Remain Strong, IDC Finds
FRAMINGHAM, MA – MARCH 24, 2003 – Despite the weak economic environment that persisted throughout 2002, the market for human resources (HR) management services experienced solid growth. According to a new report from IDC, worldwide spending on HR services totaled $61.2 billion in 2002, an increase of 9.6% over 2001. Looking forward, IDC believes worldwide spending on HR services will increase to $103.3 billion by 2007, representing acompound annual growth rate (CAGR) of 11%.
"The opportunities in HR management services remain strong, especially for HR business process outsourcing (BPO)," says Marc Pramuk, senior analyst for HR Management and Staffing Services at IDC. "Outsourcing HR processes as a means of cutting costs, improving productivity, and gaining access to
technologies is especially attractive in today's market, and service providers are getting better and better at delivering high-quality services with measurable results. This bodes well for continued growth as economic conditions improve.”
From a regional perspective, the Americas are and will remain the largest contributors to worldwide spending on HR services through 2007, followed by Europe, Middle East and Africa (EMEA). Asia/Pacific, while contributing the smallest portion of worldwide HR services spending, will enjoy the fastest CAGR of all three regions.
To capitalize on the market opportunities and expand their competitive presence, IDC believes that HR services providers must articulate specific,quantifiable return on investment (ROI) metrics, and expand service offerings in a holistic manner along the HR value chain.
The study, Worldwide and U.S. HR Management Services Forecast, 2003-2007 (IDC #28963), presents a five-year forecast for the worldwide and U.S. markets for human resource (HR) management services. The forecast also covers three service categories, including HR consulting, HR processing, and HR BPO. The purposes of this study are to identify and quantify the worldwide and U.S. market opportunities, and to provide HR service providers withrecommendations for their growth strategies. In addition, the document reviews key drivers and inhibitors that influence the timing and magnitude of themarket opportunities.
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