Increasing preference regarding outsourcing services among small emerging businesses, availability of multiple services and its ability to help businesses focus on their core functioning are few factors driving the growth of Human Resource Outsourcing Market in India.
According to TechSci Research report, “India Human Resource Outsourcing Market- By Region, Competition Forecast and Opportunities, 2018-2028F”, The India human resource outsourcing market is valued at USD94.36 million in 2022 and is forecasted to grow with a growth rate of 25.06% in the forecasted years, owing to the increasing small business which prefer outsourcing services. It is such because it allows them to focus on their core competence and leave all the human resource tasks to the outsourcing company.
Emerging economies like India may attract multinational firms and boost foreign direct investment owing to a strong business ecosystem and presence of skilled human resource pool. The fact that they are more focused on the transactional aspect of services, such as payroll, benefits, HR compliance, time and attendance, etc., is another encouraging sign for the expanding HRO industry in India.
Businesses can easily scale up or down the size of their HR workforce based on requirements, by outsourcing HR functions. The majority of HR outsourcing service providers provide businesses with adaptable packages that give them on-demand access to essential HR tools, resources, and services. As a result, firms may maintain their agility without having to pay for an expensive internal HR team.
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It can be costly to operate a full-fledged HR team, especially for small and mid-sized enterprises with tight resources. By providing a productive recruitment approach that lowers the cost of hiring personnel, outsourcing partners assist organizations in minimizing their operational costs. Additionally, it reduces the risk of compliance fines and avoids the costs of obtaining, implementing, and deploying pricey HR technologies, allowing small firms to concentrate their financial resources on their core goods and services.
The time spent on typical administrative tasks is decreased due to outsourcing, which also helps to optimize other HR procedures including payroll processing, employee training, and compliance monitoring. By giving their clients access to the most up-to-date HR tools and technology that do away with unproductive processes, outsourcing providers assist in increasing their clients’ workplace efficiency. Teams can, therefore, concentrate more on essential business procedures, increasing the productivity of the organization as a whole.
The India human resource outsourcing market is segmented on the basis of type, end user and regions. Based on type, the market is segmented into payroll, recruitment process, benefits administration, multi process human resource, learning services and others include onboarding, compliance management, etc. Further, based on end user, the market is fragmented into IT & ITES, BFSI, healthcare, hospitality, retail and others include manufacturing, logistics, education, etc.
Since the HR department is responsible for several duties, including developing perks and benefits and keeping track of employee performance. Due to the surge in resource demand, the business must engage specialist teams and outsource support to organizations with a wide range of experience and quick response times. Indian banks achieve savings of between 30 and 40% through outsourcing as compared to other captive outsourcing units. As a result, the BFSI industry is seeing an increase in demand for HR outsourcing.
Key market players in the India human resource outsourcing market include:
- Randstad India Private Limited
- Adecco India Private Limited
- ManpowerGroup Services India Private Limited
- TeamLease Services Limited
- Innovsource Services Pvt. Ltd.
- Quess Corp Limited
- PERSOLKELLY India Private Limited
- Careernet Technologies Pvt. Ltd.
- ABC Consultants Pvt Ltd.
Based on region, the market is segmented into North India, South India, East India, West India. Due to the availability of different industries in the region and the presence of favorable environment for establishing a business, many companies are setting up their business in the region. Thus, around 37.18% of the total market share is covered by South India.
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“The India human resource outsourcing services is witnessing an exponential growth owing to the presence of variety of services such as payroll, recruitment, etc. Moreover, the involvement of artificial intelligence in the outsourcing services, which are making the recruitment and other services easier, is also boosting the market growth. Additionally, the establishments of small firms in the country which mostly outsource their human resource services, will further accelerate the growth of India human resource outsourcing market.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
“India Human Resource Outsourcing Market, Segmented By Type (Payroll, Recruitment Process, Benefits Administration, Multi Process Human Resource, Learning Services, Others (Onboarding, Compliance Management, etc.)), By End User (IT & ITES, BFSI, Healthcare, Hospitality, Retail, Others (Manufacturing, Logistics, Education, etc.)), By Region, By Company, Forecast & Opportunities, 2018-2028F”, has evaluated the future growth potential of India human resource outsourcing market and provides statistics and information on market structure, size, share, and future growth. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities present in the India human resource outsourcing market.