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Latest research from NelsonHall reveals 2006 HR outsourcing predictions
[February 02, 2006]

Latest research from NelsonHall reveals 2006 HR outsourcing predictions


NelsonHall, the leading independent Business Process Outsourcing (BPO) analyst firm, today announced the availability of its latest research entitled "2006 Predictions for HRO: The Year of the Global Deal." Authored by Phil Fersht, Executive Vice President, BPO Research, NelsonHall, the report also includes findings from executive interviews with leading vendors in the HRO sector.




Fersht commented, "2006 will be a watershed year for HRO. In 2005, we saw the customer, the supplier and the consultant all battle with complexity,compliance, security and cost issues. That's because HRO has proven to be more complex than ever imagined. However, 2006 will represent the culmination of hard work, evaluation and investments with a succession of groundbreaking multinational contracts."

The six distinct predictions discussed in detail are as follows:


  1. Confidence in HR Outsourcing will rebound
  2. Buyers, service providers and consultants will get the HRO balance right
  3. We will see increased global HR outsourcing activity
  4. Single vendor multi-tower outsourcing contracts will remain slow to emerge but vendor partnership activity across domains will increase
  5. Some significant mergers, acquisitions and partnerships will emerge as the Tier 1 service providers continue to develop their HRO delivery infrastructure
  6. Technology will remain a key enabler of successful HRO

In addition to making these predictions, the report contrasts first-generation HRO, which focused on HRO services providers adopting the existing shared services of clients, versus a second-generation of HRO. The latter reflects the investment providers are now making to develop their own shared services capabilities that they can actively leverage for multiple clients.

Fersht continued, "The HRO market remains relatively untapped, which constitutes enormous opportunities for second-generation HRO providers. We're anticipating that multi-process HRO expenditures will increase by 20% in 2006,reaching $4.3 billion worldwide."

NelsonHall's 2006 HRO Predictions report is available now. For more information about accessing this report and NelsonHall's research services, please contact the following NelsonHall representatives:

NelsonHall North America: Matt Gennone at [email protected] or call on (+1) 201-633-5138.
NelsonHall Europe: Paul Connolly at [email protected] or call on (+44) 1628-819177.



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