Human Resource Professional Services Market, Sector / Industry Report & Analysis, 2025 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Global Human Resource Professional Services Market


The global Human Resource Professional Services market size is projected to reach US$ 8.56 billion by 2026, from US$ 4.25 billion in 2020, at a CAGR of 12.4% during 2021-2026. Growing preference for automating HR processes and integration of big data analytics and mobile technology into professional services are driving the market.

There is an increasing need for management of additional human resource activities such as strategic decision-making and aligning an organizations goals, vision, and mission in line with HR functions. In order to dedicate additional time for decision-making and analysis, organizations prefer to opt for HR professional services for regular administrative human resource functions.

There have been significant advancements in big data analytics and Artificial Intelligence (AI) over the last decade. These technologies are being deployed by organizations for managing large volumes of human resource data and for gaining significant insights into overall performance of an organization. Predictive analytics helps organizations in better decision-making and maximizing their capital by retaining human resources.

Increasing demand for flexibility in accessing data pertaining to leaves, attendance, work schedule, and training modules is expected to boost market growth over the forecast period. These services offer better communication, professional assistance, online access to personal data, and evaluation of employee performance.

Leading market players are constantly engaged in updating and modifying their services to maintain competitiveness, which is further creating new growth opportunities for market expansion. However, concerns regarding lack of expertise in advanced technologies, while implementing latest solutions and offerings, are expected to hinder market growth over the forecast period.

Nevertheless,service providers are offering complete support for implementation of HRM systems in an organization to make the transition more seamless and efficient. Several service providers are providing organizations with training sessions dedicated to ensuring efficient operation of HRM services and solutions.

Market Segmentation, Outlook & Viewpoint: Global Human Resource Professional Services Market

Type Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

  
Deployment Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)
  
Enterprise Size Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)
  
End Use Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

Key Players, Recent Developments & Regional Insights: Global Human Resource Professional Services Market

The core HR segment was valued at USD 1.02 billion in 2017 and is expected to account for the dominant share in the overall market revenue during the forecast period. This is primarily due to growing need of organizations to automate their business processes related to human resource functions. A majority of organizations implement core HR systems to carry out traditional human resource activities and offer adequate time to personnel and managers for strategic decision-making.

Talent management is projected to be the fastest-growing segment by type by 2025. Talent management services enhance workflow and help improve overall productivity of an organization through career and succession planning,time and attendance tracking, and workforce and employee benefits management such as annual bonus, leaves, and insurance. They also aid in improving employee retention.

Deployment Insights

On-premise deployment is expected to remain the most widely adopted method of deploying HR professional services. This deployment method allows largescale customization of products and services while increasing flexibility. Furthermore, it helps in improving cost efficiency in terms of total cost of ownership and setting up a control center in an organization for coordinating and managing various tasks of human resource management (HRM).

Hosted deployment is projected to emerge as the fastest-growing segment within the HR professional services market and is preferred by enterprises owing to advancements in technology and features. The significant benefit of this deployment method is that organizations using hosted services need not upgrade; service providers upgrade system software and services as and when required.

End-use Insights

The IT and telecom segment held the largest market share in 2017 and was valued at USD 586.7 million. Increase in efficiency of HRM capabilities of organizations can be attributed to growth of the IT and telecom industry and integration of big data and machine learning into HR professional services. This is expected to further propel the segment over the forecast period.

The retail sector is expected to emerge as the fastest growing end-use segment over the forecast period. Adoption of HR professional services allows retailers to focus on their core tasks while implementing improved HRM techniques. Furthermore, rapid growth of the retail industry has resulted in largescale hiring of employees, which creates employee retention issues. Largescale hiring can lead to difficulties in efficiently managing a massive workforce in any organization. As a result, many employees often tend to switch their jobs if they are not satisfied with human resource services. These professional services are therefore being adopted to overcome these challenges associated with employee retention.

Insights

Small and medium enterprises (SMEs) are anticipated to emerge as the fastest-growing segment with a CAGR of 14.0% over the forecast period. The number of SMEs operating in developing economies such as China, India, and Japan is increasing at a rapid pace and are increasingly implementing robust solutions to optimize their business capabilities.

Increasing government initiatives and various digital SME campaigns across the globe are expected to further drive the growth of this segment through 2025. Increasing implementation of information technology infrastructure by SMEs and automation of HR processes are expected to boost segment growth.

Regional Insights

North America dominated the global market in terms of revenue, valuing USD 1.08 billion in 2017. Growth of the region can be attributed to concentration of multiple providers of HR professional services and solutions. Increasing complexities of business operations due to increasing workforce are encouraging companies to automate basic human resource operations, thereby, increasing demand for these services in the region.

The Asia Pacific market was valued at USD 558.7 million in 2017 and is estimated to witness significant growth over the forecast period. Growth of the region can be attributed to increasing favorable government initiatives, especially in India, China, and Japan, to efficiently manage workforce. Furthermore, increasing expenditure due to implementation of latest technologies by organizations for developing their businesses is predicted to contribute to market growth.

HR Professional Services Market Share Insights

ADP, Inc.; Oracle Corporation; SAP SE; Ultimate Software; Workday, Inc.; IBM Corporation; Kronos, Inc.; Skillsoft; and Cornerstone On Demand, Inc. are some of the leading participants in the market. In August 2018, ADP acquired Celergo, a prominent provider of payroll management solutions. This strategic acquisition was aimed at enhancing ADPs international payroll offerings.

Leading market players are focusing on strategic partnerships and acquisitions to boost their foothold in the industry. Moreover, they are collaborating with other organizations that are willing to automate and streamline their HR processes to gain a competitive edge. The players are also investing in new product development, research and development activities, and product portfolio expansion to offer cost-effective and reliable service offerings.

Key Insights Covered: Global Human Resource Professional Services Market

1. North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Human Resource Professional Services industry.
2. Global major manufacturers" operating situation (sales, revenue, growth rate and gross margin) of Human Resource Professional Services industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Human Resource Professional Services industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Human Resource Professional Services industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Human Resource Professional Services industry.

Research Methodology: Global Human Resource Professional Services Market

  
Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
  
Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
  
Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among other