The Expanding Outsourcing Market

By Staff Report

Jun. 2, 2005

B elow are charts from the Everest Group showing the number of employees covered under HR outsourcing contracts, the functions being outsourced, how costs are being affected and more.

Coverage Expands

Since the inception of multiprocess HR outsourcing seven years ago, the number of employees covered has increased by more than 100-fold, to 3.7 million as of March 31.

Source: The Everest Group


Costs Come Down

Competition among vendors and economies of scale have helped push down the price per employee for multiprocess HR outsourcing contracts by more than a third both for large and very large companies.

Source: The Everest Group


Business On The Rise

Since 2000, as the nascent multiprocess HR outsourcing industry took off, the total value of worldwide contracts has grown more than 250% to $12.5 billion in 2004.

*As of March 31, 2005
Source: The Everest Group


Transactional Focus

Not surprisingly, the more transaction-oriented the HR process, the more likely it is to be included in a multiprocess HR outsourcing contract, according to a March survey of 99 companies with such deals.

Source: The Everest Group

Workforce Management, June 2005, p. 54Subscribe Now!

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