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 (HR BPO) market in particular continues to attract new service providers with IT services and business process expertise. Contracts awarded to IBM by Procter & Gamble, to EDS by Infineon, and to ACS 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 of 7.9%.
* HR BPO represents the fastest growing segment of the BR services market, with growth projected at a...