Dallas, Texas. -- HR outsourcing is becoming the most outsourced business process according to recent data provided by Gartner. Projected forecasts show that HR outsourcing is growing at an annual rate of 8.6 percent a year and will grow to almost $40 billion by 2007. Additionally, Gartner estimates that 85 percent of US enterprises will outsource at least one component of their HR functions by the end of 2005.
"We are seeing a lot of activity in the telecommunications, retail and government sectors," says Ed Rankin, HR BPO Practice Leader for the outsourcing consulting firm, the Trowbridge Group. "Reducing cost and improving service levels are key motivators for companies to outsource."
According to Rankin, organizations with 10,000+ employees may save as much as 20 percent or more through HR outsourcing. Organizations that outsource non-core functions such as HR can spend more time on strategic initiatives focused on revenue generation and profitability.