IDC Observes C-Level Executives Having a Growing Influence in HR Outsourcing

IDC Predicts Major Shift in Market from Discrete Outsourcing to More

Comprehensive Solutions



Apr 23, 2001, 01:00 ET from IDC

    FRAMINGHAM, Mass., April 23 /PRNewswire Interactive News Release/ --
 A recent IDC survey of 300 CEOs, VPs, and HR directors revealed that the HR
 services market is undergoing major changes.  In fact, even the person at
 client organizations responsible for deciding the use of HR services is
 reaching new heights.  According to IDC's survey, CEOs and CFOs are becoming
 increasingly involved in HR services decision making as larger projects are
 undertaken to connect HR processes more closely with organizational goals and
 objectives.
     "The decision to use HR services must align with an organization's overall
 business strategy," said Marc Pramuk, senior analyst for IDC's eHuman
 Resources research program.  "It is, therefore, becoming more crucial for
 C-level executives to be involved in the process of evaluating HR outsourcing
 strategies to ensure their fit with the company's goals and business
 strategy."
     Another key finding from IDC's survey shows the importance of Web-enabled
 services and self-service capabilities.  The majority of respondents said it
 is important that HR service providers offer Web-enabled services and
 indicated that self-service capabilities are an important consideration.
 However, companies still express fears over security, cost, and access to
 data.
     "HR processes are increasingly being automated," Pramuk said. "This is
 changing the role and responsibilities of HR service providers - both as
 consultants and as outsourcers.  Additionally, there are significant
 challenges in linking disparate technologies that result from mergers and
 acquisitions and from decentralized HR strategies.  This underscores the
 importance of having integrated HR systems that can reduce costs while
 streamlining processes.  All of these factors that complicate HR are driving
 the need for more comprehensive, Web-enabled HR services, and this is fueling
 significant growth in HR services."
     Significant growth indeed.  IDC estimates the U.S. market for HR
 consulting and outsourcing services will more than double its size in the next
 five years, reaching $45.9 billion in 2005.  Business processing outsourcing
 (BPO) is the fastest-growing segment of HR services.  BPO is a distinct form
 of outsourcing where there is a shift in management responsibility to an
 external vendor.  Spending on HR BPO services will more than triple to $9.7
 billion in 2005.
     All the information from IDC's survey can be found in its new report,
 Human Resource Services Marketplace, Part 1: U.S. Forecast and Analysis, 2000-
 2005 (IDC #B24302).  Additionally, this report forecasts revenues in the
 market through 2005 by the following segments: HR consulting, HR processing
 services, and HR business process outsourcing.  Other segments examined
 include payroll and benefits administration.  The report also discusses major
 trends impacting the market as well as growth drivers and inhibitors.  It
 includes recommendations for vendors competing or thinking about competing in
 the human resource services market.  To purchase this report, contact Jim
 Nagle at 1-800-343-4952, extension 4549, or at jnagle@idc.com.
     For more information on the eHR Services program, please contact Jill
 Toole at jtoole@idc.com.
 
     About IDC
     IDC is the foremost global market intelligence and advisory firm helping
 clients gain insight into technology and ebusiness trends to develop sound
 business strategies.  Using a combination of rigorous primary research, in-
 depth analysis, and client interaction, IDC forecasts worldwide markets and
 trends to deliver dependable service and client advice.  More than 700
 analysts in 43 countries provide global research with local content.  IDC's
 customers comprise the world's leading IT suppliers, IT organizations,
 ebusiness companies and the financial community.  Additional information can
 be found at www.idc.com.
     IDC is a division of IDG, the world's leading IT media, research and
 exposition company.
     All product and company names may be trademarks or registered trademarks
 of their respective holders.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X48177411
 
 

SOURCE IDC
    FRAMINGHAM, Mass., April 23 /PRNewswire Interactive News Release/ --
 A recent IDC survey of 300 CEOs, VPs, and HR directors revealed that the HR
 services market is undergoing major changes.  In fact, even the person at
 client organizations responsible for deciding the use of HR services is
 reaching new heights.  According to IDC's survey, CEOs and CFOs are becoming
 increasingly involved in HR services decision making as larger projects are
 undertaken to connect HR processes more closely with organizational goals and
 objectives.
     "The decision to use HR services must align with an organization's overall
 business strategy," said Marc Pramuk, senior analyst for IDC's eHuman
 Resources research program.  "It is, therefore, becoming more crucial for
 C-level executives to be involved in the process of evaluating HR outsourcing
 strategies to ensure their fit with the company's goals and business
 strategy."
     Another key finding from IDC's survey shows the importance of Web-enabled
 services and self-service capabilities.  The majority of respondents said it
 is important that HR service providers offer Web-enabled services and
 indicated that self-service capabilities are an important consideration.
 However, companies still express fears over security, cost, and access to
 data.
     "HR processes are increasingly being automated," Pramuk said. "This is
 changing the role and responsibilities of HR service providers - both as
 consultants and as outsourcers.  Additionally, there are significant
 challenges in linking disparate technologies that result from mergers and
 acquisitions and from decentralized HR strategies.  This underscores the
 importance of having integrated HR systems that can reduce costs while
 streamlining processes.  All of these factors that complicate HR are driving
 the need for more comprehensive, Web-enabled HR services, and this is fueling
 significant growth in HR services."
     Significant growth indeed.  IDC estimates the U.S. market for HR
 consulting and outsourcing services will more than double its size in the next
 five years, reaching $45.9 billion in 2005.  Business processing outsourcing
 (BPO) is the fastest-growing segment of HR services.  BPO is a distinct form
 of outsourcing where there is a shift in management responsibility to an
 external vendor.  Spending on HR BPO services will more than triple to $9.7
 billion in 2005.
     All the information from IDC's survey can be found in its new report,
 Human Resource Services Marketplace, Part 1: U.S. Forecast and Analysis, 2000-
 2005 (IDC #B24302).  Additionally, this report forecasts revenues in the
 market through 2005 by the following segments: HR consulting, HR processing
 services, and HR business process outsourcing.  Other segments examined
 include payroll and benefits administration.  The report also discusses major
 trends impacting the market as well as growth drivers and inhibitors.  It
 includes recommendations for vendors competing or thinking about competing in
 the human resource services market.  To purchase this report, contact Jim
 Nagle at 1-800-343-4952, extension 4549, or at jnagle@idc.com.
     For more information on the eHR Services program, please contact Jill
 Toole at jtoole@idc.com.
 
     About IDC
     IDC is the foremost global market intelligence and advisory firm helping
 clients gain insight into technology and ebusiness trends to develop sound
 business strategies.  Using a combination of rigorous primary research, in-
 depth analysis, and client interaction, IDC forecasts worldwide markets and
 trends to deliver dependable service and client advice.  More than 700
 analysts in 43 countries provide global research with local content.  IDC's
 customers comprise the world's leading IT suppliers, IT organizations,
 ebusiness companies and the financial community.  Additional information can
 be found at www.idc.com.
     IDC is a division of IDG, the world's leading IT media, research and
 exposition company.
     All product and company names may be trademarks or registered trademarks
 of their respective holders.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X48177411
 
 SOURCE  IDC

RELATED LINKS

http://www.idcresearch.com