HR services dominate as outsourcing spend exceeds £2bn, arvato survey reveals
30 May 2014
More than 90% of back-office business process outsourcing agreements (BPO) were HR-related – including for recruitment – in the first quarter of 2014, according to data compiled by BPO provider arvato in partnership with IT outsourcing research and analysis firm NelsonHall.
Fri, 30 May 2014More than 90% of back-office business process outsourcing agreements (BPO) were HR-related – including for recruitment – in the first quarter of 2014, according to data compiled by BPO provider arvato in partnership with IT outsourcing research and analysis firm NelsonHall.
The new arvato UK Quarterly Outsourcing Index found that of all BPO services contracts, which together made up 38% of contracts, HR outsourcing - including services such as payroll, benefits administration and recruitment process outsourcing (RPO) – accounted for 93% of back-office BPO agreements. No further breakdown of the HR dominance, such as the percentage RPO held, was available, a media spokesman for arvato said.
The analysis reveals the outsourcing market to be in rude health, with a 65% year-on-year rise in outsourcing spend to £2.1bn in Q1 of 2014, and £1.5bn worth of public sector deals agreed. More than half of the contracts were first-time outsourcing deals, and onshore agreements made up 75% of the total contracts.
The research is based on an analysis of contracts completed in Q1 2014.
The new arvato UK Quarterly Outsourcing Index found that of all BPO services contracts, which together made up 38% of contracts, HR outsourcing - including services such as payroll, benefits administration and recruitment process outsourcing (RPO) – accounted for 93% of back-office BPO agreements. No further breakdown of the HR dominance, such as the percentage RPO held, was available, a media spokesman for arvato said.
The analysis reveals the outsourcing market to be in rude health, with a 65% year-on-year rise in outsourcing spend to £2.1bn in Q1 of 2014, and £1.5bn worth of public sector deals agreed. More than half of the contracts were first-time outsourcing deals, and onshore agreements made up 75% of the total contracts.
The research is based on an analysis of contracts completed in Q1 2014.
