PUBLISHER: The Business Research Company | PRODUCT CODE: 1807907
PUBLISHER: The Business Research Company | PRODUCT CODE: 1807907
Human resource (HR) outsourcing and consultancy services involve external providers managing specific HR functions or offering expert guidance to organizations. HR outsourcing covers areas such as payroll, recruitment, benefits administration, and compliance, enabling businesses to concentrate on core operations. Consultancy services provide tailored advice on HR strategies, workforce development, and regulatory adherence.
Key categories of human resource (HR) outsourcing and consultancy services include payroll outsourcing, recruitment process outsourcing, and benefits administration outsourcing. Payroll outsourcing entails assigning employee compensation management to external providers. These services cater to small, medium, and large enterprises across various sectors, including healthcare and pharmaceuticals, information technology, financial services, manufacturing, retail, and consumer goods.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are taking a toll on the professional services sector, especially within legal, consulting, architectural, and engineering fields. Increased duties on imported technology, software, office hardware, and digital infrastructure have pushed up operational costs for firms that rely on global systems and resources. Cross-border consulting engagements are experiencing delays and higher expenses due to elevated travel costs and limited access to international data and tools. Moreover, industries heavily impacted by tariffs such as manufacturing, construction, and logistics are reducing their reliance on outsourced services, dampening demand for professional support. In response, service providers are reassessing pricing models, strengthening ties with domestic vendors, and accelerating the adoption of AI and automation to maintain profitability and client satisfaction in an increasingly volatile environment.
The human resource (HR) outsourcing and consultancy service market research report is one of a series of new reports from The Business Research Company that provides human resource (HR) outsourcing and consultancy service market statistics, including human resource (HR) outsourcing and consultancy service industry global market size, regional shares, competitors with a human resource (HR) outsourcing and consultancy service market share, detailed human resource (HR) outsourcing and consultancy service market segments, market trends and opportunities, and any further data you may need to thrive in the human resource (HR) outsourcing and consultancy service industry. This human resource (HR) outsourcing and consultancy service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The human resource (hr) outsourcing and consultancy service market size has grown strongly in recent years. It will grow from $53.8 billion in 2024 to $58.69 billion in 2025 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to increasing globalization, growth in digital transformation initiatives, increasing concerns over data privacy, growth in the use of artificial intelligence, and increasing demand for outsourcing employee onboarding.
The human resource (hr) outsourcing and consultancy service market size is expected to see strong growth in the next few years. It will grow to $81.71 billion in 2029 at a compound annual growth rate (CAGR) of 8.6%. The growth in the forecast period can be attributed to growing remote work, increasing number of startups, growing adoption of recruitment analytics, growing adoption of recruitment analytics, and growing adoption of digital technologies. Major trends in the forecast period include technological advancements, the adoption of AI, cloud-based HR management systems, hybrid workforce models, and cybersecurity solutions.
The forecast of 8.6% growth over the next five years reflects a modest reduction of 0.4% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Trade restrictions may impact U.S. businesses by increasing expenses for payroll processing systems and benefits administration platforms sourced from Ireland and the Philippines, leading to higher outsourcing costs and reduced HR service quality. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The growth of the human resource (HR) outsourcing and consulting services market is anticipated to be fueled by the rising number of startups. This increase in startups is driven by technological advancements, enhanced access to funding, and a growing demand for innovative and flexible work environments. For startups, HR outsourcing and consultancy services are essential for effectively managing HR functions, ensuring compliance, and allowing them to focus on core business activities while tapping into specialized expertise and resources. A report published by RSM UK in February 2024 highlighted that the UK experienced a significant 22% rise in new technology company incorporations in 2023, reaching a record high of 51,017, up from 41,972 the previous year. This growth underscores the resilience of the UK's tech sector and indicates a strong demand for HR outsourcing and consulting services.
Key players in the human resource (HR) outsourcing and consulting services market are focusing on developing advanced solutions, such as comprehensive payroll services, to ensure accurate and timely employee compensation. These services cover the entire spectrum of payroll management tasks, including payroll processing, tax calculations, regulatory compliance, and benefits administration, guaranteeing that employees receive accurate and timely compensation. For example, in March 2024, ADI Langue, a Singapore-based IT outsourcing and recruitment company, launched its payroll outsourcing services. These services are characterized by customizable solutions designed to meet diverse business needs, scalability to support growth, and the use of advanced technology for efficient payroll management. Additionally, they prioritize compliance and data security, ensuring adherence to regulations and the protection of sensitive information. Clients benefit from dedicated support from a team of experts focused on addressing queries and enhancing the overall payroll experience.
In March 2023, Mercer, a U.S.-based financial services company, acquired Leapgen for an undisclosed amount. This acquisition is expected to enable Mercer to enhance its workforce solutions and improve employees' digital experiences. By leveraging Leapgen's expertise in digital HR strategy and transformation, Mercer aims to strengthen its HR transformation and workforce solutions capabilities. Leapgen specializes in providing strategic consulting services in HR technology and digital transformation.
Major companies operating in the human resource (HR) outsourcing and consultancy service market are Accenture plc, International Business Machines Corporation, Randstad N.V., Adecco Group AG, ManpowerGroup Inc., Infosys Limited, Automatic Data Processing Inc., Aon Hewitt, Wipro Limited, Robert Half International Inc., Insperity Inc., Acadia Healthcare Company Inc., Ceridian HCM Holding Inc., Oasis Outsourcing Holdings Inc., XcelHR, G&A Partners, Invedus, MSI Global Transformation Solutions, CPEhr, Astron Solutions, Liquid HR, Infiniti HR, Alliant HR Outsourcing
North America was the largest region in the human resource (HR) outsourcing and consultancy service market in 2023. The regions covered in the human resource (HR) outsourcing and consultancy service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the human resource (HR) outsourcing and consultancy service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The human resource (HR) outsourcing and consultancy service market includes revenues earned by entities by providing services such as employee onboarding, performance management, HR strategy and planning, workforce analytics, legal support, and risk management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Human Resource (HR) Outsourcing And Consultancy Service Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on human resource (hr) outsourcing and consultancy service market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for human resource (hr) outsourcing and consultancy service ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The human resource (hr) outsourcing and consultancy service market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.