Outsourced human resources functions such as benefits, payroll, employee data management, and HR IT are increasingly moving offshore, according to Everest Research Institute's HRO Market Update. The analysts say 44 percent of the more than 70 major HRO transactions currently in force have an offshore component. This number is expected to increase as HRO suppliers continue to invest in their offshore capabilities.
"HR offshoring can result in savings of up to 18 percent off the total HR cost base, and this is clearly driving offshore growth in this sector," said Marc Pramuk, Vice President at Everest Research Institute. "Most HRO suppliers already have a moderate to significant offshore presence, with plans to aggressively expand their offshore capabilities. A number of regions around the world provide substantial and sustainable HRO labor arbitrage opportunities for developed nations and are attracting significant investment from the major HRO suppliers."
