September 19, 2011: A recent study conducted by IDC on HR outsourcing reported on the quantitative and qualitative advantages the outsourcing vendors in the offshore market prevail, to become competitively victorious in the market and fulfill the clients’ prerequisite. IDC conducted study report includes two sections of which one part deals with the characteristic of HR outsourcing firms its influence and the second part deals with the graphical representation of the total study.
Business Process Outsourcing (BPO) has extended its functioning from fundamental business solutions to other functions such as Human Resource and Finance. Companies are sub contracting human resource functions to third party vendors at present to tap the benefit of perfect HR solutions delivered by the service providers available in the offshore market. The study by IDC conducted the survey on the basis of rigorous framework for evaluating the uniqueness of the vendors. The study also tinted the various dynamics which has influenced short term and long term achievement of the service providers that are particularly into Human Resource Business Process Outsourcing (HR BPO).
According to the study, at present the human Resource BPO sector deals with multifunction such as payroll administration and compensation planning. There are huge number of companies especially in the US which depends on the service providers for recruitment management and workforce performance management. Benefits administration and planning are other Human Resource related service provided by these offshore vendors.
IDC has categorized service providers in the offshore market according to their capabilities and strategies in delivering quality services to the global clients. As per the graphical representation in the second section of the research report the leading companies are IBM, Accenture and ADP. These companies has made successful business in the past years as has becomes the most preferred HR service providers in the industry. Companies such as Aon Hewitt, ACS and Northgate shared the position of major players where as TCS, Infosys and HP are still contenders.
The study could also divulge that there is a slow downtrend witnessed in the industry for the reason that the US economy is facing fluctuations. In the past 12-18 months the business has gradually declined but experts believe that there will be an uptrend sooner as more global companies are looking forward to invest more into HR outsourcing. HR outsourcing industry might not see million dollar business dealings in a short run but it is expected in the long run.
The survey report concluded that over the next few years Human Resource service providers will be positioned well in the industry. The scope for business in the long run is immense.