Key Market Overview:
Human Resource Professional Services Market size was worth USD 5.3 Billion in 2022, accounting for a CAGR of 12.5% during the forecast period (2023-2030), and the market is projected to be worth USD 15.2 Billion by 2030.
Human resource professional services refer to the range of specialized services and support that are provided by experts in the field of human resource management to organizations, businesses, and government agencies. Human resource professionals are responsible for managing the human capital of an organization, and their services are critical for effective talent acquisition, talent management, and employee engagement.
Human resource professional services typically include a range of activities such as recruitment, performance management, employee relations, compensation and benefits, training and development, and compliance with labor laws and regulations. They also offer guidance and advice to managers and executives on organizational strategy and culture, employee engagement, and workforce planning.
The increasing adoption of human resource automation technology is driving growth in the human resource professional services market. Companies are recognizing the need to replace paper-based systems with digital procedures to streamline human resource processes and improve efficiency. For instance, in January 2021, Jotform, a US-based automated workflows company, launched human resource automation solutions that replace manual chores with technology, enabling companies to migrate everything to the cloud and eliminate the need for printed job applications and burdensome employee documentation. As more companies adopt human resource automation solutions, the demand for HR professional services firms that can offer innovative and integrated technology solutions is likely to increase.
The human resource professional services market is being driven by several factors, including the increasing complexity of employment laws and regulations. As laws and regulations become more complex, companies are turning to HR professional services firms for guidance and support in managing compliance.
Additionally, the adoption of human resource technology has transformed the way companies manage their workforce, and human resource professional services firms that can offer innovative and integrated technology solutions are in high demand.
Furthermore, with companies expanding their operations globally, they require human resource professional services firms with expertise in managing cross-border employment issues and compliance with international regulations. Therefore, the above-mentioned factors have driven the growth in the human resource professional services market.
Economic downturns can lead to decreased demand for HR professional services as organizations look to cut costs. Moreover, the use of technology in HR processes, such as automated recruiting, can reduce the need for certain HR services and impact demand. Some organizations may choose to develop internal HR departments rather than outsourcing to external providers, reducing demand for HR professional services.
The use of data analytics and artificial intelligence in human resources has the potential to transform the way companies manage their workforce. By leveraging data analytics and artificial intelligence, human resource professional services firms can help businesses make more informed decisions about their workforce, such as identifying areas where productivity can be improved, predicting employee turnover, and developing more effective employee training programs. This presents an opportunity for human resource professional services firms to develop and offer innovative solutions in this area, helping businesses to manage their workforce more efficiently and effectively. This is likely to lead to cost savings, improved productivity, and a competitive advantage in the market.
Human Resource Professional Services Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||15.2 Billion|
|By Type||Core HR, Employee Collaboration & Engagement, Recruiting, Talent Management, Workforce Planning & Analytics, and Others.|
|By Mode of Deployment||On-premise and Hosted|
|By Enterprise Size||Large Enterprise and SMEs|
|By End-use||IT & Telecom, Retail, Academia, BFSI, Manufacturing, Healthcare, Government, and Others|
|By Region||North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa|
|Key Players||ADP, LLC, SAP SE, Oracle Corporation, Ultimate Kronos Group, IBM Corporation, Cornerstone OnDemand, Inc., Capterra, Inc. (Gartner), Zucchetti s.p.a. (Zucchetti), GRM Information Management, PIE Software Pvt Ltd, and Workday Inc.|
Based on type, the human resource professional services market is classified into core HR, employee collaboration & engagement, recruiting, talent management, workforce planning & analytics, and others. The core HR segment holds the largest market share in the year 2022. This is owing to the fact that Core HR services are essential for all businesses, regardless of their size or industry, and are often the first human resource services that companies outsource. However, the workforce planning & analytics segment is expected to witness the fastest growth over the forecast period. This is driven by the increasing use of data analytics and artificial intelligence in human resources.
By Mode of Deployment
Based on the mode of deployment, the market is categorized into on-premise and hosted. The on-premise segment holds the largest market share in the year 2022, as it allows for extensive customization and flexibility. This deployment method improves cost efficiency in terms of the total cost of ownership and helps set up a control center for coordinating and managing various human resource management tasks within an organization.
However, the hosted segment is expected to witness the fastest CAGR over the forecast period. This deployment method is favored by enterprises due to technological advancements and features. One key benefit of hosted deployment is that service providers handle system software and service upgrades as needed, eliminating the need for organizations to manage upgrades on their own.
By Enterprise Size
Based on enterprise size, the market is categorized into large enterprises and SMEs. The large enterprise segment holds the largest market share in the year 2022, as larger organizations typically have more complex human resource needs, requiring a greater range and depth of HR services. For instance, large companies require specialized human resources services such as global mobility management, executive compensation, or human resource analytics.
However, the SME segment is expected to witness the fastest CAGR over the forecast period. This is attributed to the rise of the economy and the increasing number of freelancers and independent workers has led to more SMEs seeking HR professional services to manage their workforce. As more individuals choose to work for themselves or start their businesses, SMEs need to be able to manage a more diverse and flexible workforce.
Based on the end-use segment the market is classified into IT & telecom, retail, academia, BFSI, manufacturing, healthcare, government, and others. The IT & telecom sector holds the largest market share in the year 2022, as this sector has a significant demand for human resource professionals due to the high demand for technical talent and the need for human resource services to manage and develop this talent.
However, the healthcare segment is expected to witness the fastest CAGR over the forecast period. The factors such as the aging population and increasing demand for healthcare services, lead to a higher demand for healthcare professionals and associated human resource services such as recruitment, training, and development.
Based on region, the market is categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America holds the largest market share in the year 2022. North America has a large number of businesses and industries, including some of the world’s largest corporations. This creates a significant demand for human resource professional services to help manage the workforce and ensure that organizations have the right talent in place to achieve their goals.
However, Asia Pacific is anticipated to witness the fastest-growing CAGR over the forecast period. The increasing demand for outsourcing and offshoring services in the Asia Pacific region is driving the growth of the human resource professional services market in this region. Countries such as India, China, and the Philippines offer a large population of skilled workers and competitive labor costs, making them attractive destinations for outsourcing human resource services. Additionally, the region’s strong economic growth and increasing investment in technology and infrastructure are creating new opportunities for HR professional services providers to support the growth of businesses and industries in the region.
Human Resource Professional Services Market Competitive Landscape:
The market is highly competitive, with a large number of players operating at the global and regional levels. The players compete on various parameters such as price, quality, innovation, and customer service. They are constantly investing in research and development to improve their products and expand their market share. Mergers, acquisitions, and partnerships are also common strategies employed by companies to enhance their market position and expand their product portfolio. Key players in the market include-
- ADP, LLC
- SAP SE
- Oracle Corporation
- Ultimate Kronos Group
- IBM Corporation
- Cornerstone OnDemand, Inc.
- Capterra, Inc. (Gartner)
- Zucchetti s.p.a. (Zucchetti)
- GRM Information Management
- PIE Software Pvt Ltd.
- Workday, Inc.
- In November 2022, Oracle, a global leader in human capital management (HCM), partnered with Global HR Research (GHRR), a provider of employment screening services, drug testing, and verifications. The partnership aims to optimize Oracle’s HCM system and improve job placement productivity for human resource professionals.
- In November 2022, OneSource Virtual, a Texas-based provider of professional services and application management for Workday, announced that it is being acquired by Cognizant. The acquisition is expected to enhance OneSource Virtual’s capabilities and expand its reach, offering clients access to a wider range of expertise and services in the HCM market.
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