7.9% growth in W. European HR 2003 to 2008.Helped by increased spending on HR outsourcing and by a healthy recovery in the HR consulting markets, the Western European HR services market has witnessed a welcome return in confidence that has extended into the first half of 2004. The European human resource business process outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in (HR BPO BPO Business Process Outsourcing BPO Benevolent & Protective Order (of Elks of the USA) BPO Benzoyl Peroxide BPO Business Process Optimization BPO Broker Price Opinions BPO Buffalo Philharmonic Orchestra ) market in particular continues to attract new service providers with IT services and business process expertise. Contracts awarded to IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) by Procter & Gamble, to EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. by Infineon, and to ACS (Asynchronous Communications Server) See network access server. by General Motors Europe have resulted in significant numbers of European employees receiving HR services and support from third-party providers. The performance of service providers in 2003 suggests that confidence is returning to the market, with evidence of a growing project and contract pipeline. IDC has made the following key forecasts for the period 2003 to 2008:: * Europe represents the second largest market for HR services after the U.S., with spending on BR services at more than $22.3 billion in 2003. * The European market will grow to more than $32.6 billion by 2008, at a CAGR CAGR See: Compound Annual Growth Rate of 7.9%. * HR BPO represents the fastest growing segment of the BR services market, with growth projected at a CAGR of 17.90% over the forecast period 2003-2008. Comment: In established HR markets such as payroll and HR consulting, competition among service providers continues to exert a downward pressure on service fees. However, this market dynamic has been balanced by growing customer awareness of the need for investment in the HR function. Corporate governance, pension reform, compliance, productivity, process efficiency, and HR costs have all helped stimulate this demand. Buyer confidence has also been boosted by increased competition in the European HR services market, which has forced service providers to become evermore ev·er·more adv. 1. Forever; always. 2. In a future time. evermore Adverb all time to come Adv. 1. sophisticated in their ability to demonstrate the value add they can deliver above and beyond the in-house function, and to present buyers with greater choice. 'Forecast and Competitive Analysis of the European HR Management Services Market, 2003-2008'. www.idc.com |
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