HR goes outside

An emerging variation on the outsourcing theme is making public sector inroads.

In a new report, Yankee Group predicts that human resources business process outsourcing will grow 27 percent this year, with the global market exceeding $4.6 billion. In this outsourcing flavor, organizations off load such functions as payroll, benefits administration, and recruitment.

To date, many of the attention-grabbing customers have been commercial concerns such as Marriott and Delta Air Lines. But public sector entities are actively pursuing ways to contract out HR processes, said Phil Fersht, who leads Yankee Group’s Multi-Discipline BPO Practice.

Texas state government last October outsourced human resources and payroll services to Convergys, which has a similar deal with Florida. The trend has also taken off in Europe. The City of Copenhagen last year cut over to an outsourced HR system provided by Accenture. Fersht said that Italy and Germany are in negotiations around HR outsourcing.

Yankee Group's report, released April 4, indicates that the surge will continue. The company predicts that expenditures on the service will increase at a compound annual growth rate in excess of 30 percent over the next four years. In 2009, Yankee Group believes that the global market will reach $14 billion.

Moore is a freelance writer based in Syracuse, N.Y.


  • Congress
    U.S. Capitol (Photo by M DOGAN / Shutterstock)

    Funding bill clears Congress, heads for president's desk

    The $1.3 trillion spending package passed the House of Representatives on March 22 and the Senate in the early hours of March 23. President Trump is expected to sign the bill, securing government funding for the remainder of fiscal year 2018.

  • 2018 Fed 100

    The 2018 Federal 100

    This year's Fed 100 winners show just how much committed and talented individuals can accomplish in federal IT. Read their profiles to learn more!

  • Census
    How tech can save money for 2020 census

    Trump campaign taps census question as a fund-raising tool

    A fundraising email for the Trump-Pence reelection campaign is trying to get supporters behind a controversial change to the census -- asking respondents whether or not they are U.S. citizens.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.