HR Outsourcing continues to grow

Dallas, Texas (March 16, 2005) - 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% a year and will grow to almost $40 billion by 2007. Additionally, Gartner estimates that 85% of US enterprises will outsource at least one component of their HR functions by the end of 2005. The most popular areas for outsourcing are non-core, back-office services such as payroll, benefits, and education and training.

“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% 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.

About Trowbridge Group
The Trowbridge Group (TG) is a global outsourcing consulting firm that assists companies in navigating the sourcing lifecycle. Whether it’s Outsourcing or in-house Shared Services, Traditional Contract or Joint Venture, these are specific questions that are uniquely answered by TG everyday. We provide strategic advice and deep tactical experience from some of the largest BPO, IT and HR outsourcing contracts in Asia, Europe and the Americas, with a total contract value of over $40 billion. As independent advisors, innovative business solution experts and experienced global negotiators, we take the art and science of creative deal structuring to new heights. We assist organizations around the world in navigating the sourcing lifecycle, and our clients are leading their organizations into the future, today.

HR Outsourcing Continues to Grow Among Companies Seeking to Reduce Cost and Improve Service Levels