By Greg Wilson
The human resources (HR) management services market continues to gain momentum, despite the tough economic environment.
The human resources (HR) management services market continues to gain momentum, despite the tough economic environment. Research from IDC indicates that the spending on HR services totalled US$61.2 billion in 2002, an increase of 9.6% over 2001.The analyst group also predicts the market for HR services will grow rapidly, reaching $103.3 billion by 2007, clocking up a compound 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. 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,” he explains.From a regional perspective, the Americas remain the largest contributors to worldwide spending on HR services through 2007, followed by Europe, Middle East & Africa (EMEA). Asia/Pacific, while contributing the smallest portion of worldwide HR services spending will rack up the fastest CAGR of all three regions.To take advantage of the market opportunities HR service providers must articulate specific, quantifiable return on investment (ROI) metrics and expand service offerings in a holistic manner along the HR value chain.