Market Definition
Human Resource Outsourcing is a service where an organization hires a professional third-party organization to manage its human resources activities & diverse administrative tasks. These services also enable an organization to enhance the overall HR function while increasing compliance & retaining the top talent. While there are different types of HR Outsourcing services, the most extensively utilized ones across the UAE are:
The other varieties of HR Outsourcing services include the following:
Since the UAE government is investing substantially in different industries for the economic diversification of the country away from oil & gas, other sectors are witnessing a boom and offering several growth opportunities for the people. It, in turn, is stimulating the demand for HR Outsourcing Services and driving the industry.
Market Insights
The UAE HR Outsourcing Services Market is projected to grow at a CAGR of around 8.96% during the forecast period, i.e., 2022-27. The market is driven by the growing government focus on the country's economic diversification away from oil, thereby investing substantially in various other sectors. It, in turn, is demonstrating a rising number of business establishments throughout the UAE, instigating the need for professional HR outsourcing services to hire suitable candidates and manage the organization.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-27) | 8.96% |
| Region Covered | Abu Dhabi, Dubai, Sharjah & Rest of Emirates |
| Key Companies Profiled | Sovereign Group, JAMS HR Solutions, Intelligent Business Technologies LLC (IBT), HLB HAMT, Nathan & Nathan, AMS International FZ LLC, Transguard Group, Dulsco, TASC Outsourcing, Ultimate HR Solutions, Sundus Recruitment Services LLC, Al Mansoor Enterprises LLC, Axxon HR Solutions, Others |
| Unit Denominations | USD Million/Billion |
Besides, spreading awareness among businesses about the benefits of these services to enhance the overall operational efficiency is also instigating the organizations to investing in human resource outsourcing services. In fact, with rising digitalization and the establishment of companies in the country, the need for data optimization generated by the firms is also boosting the demand for HR outsourcing services and driving the market.
Moreover, as different organizations are recruiting employees using digital platforms like social media for outsourcing to identify the appropriate resource, these service providers are gaining massive popularity for the optimization & improvement of resources, thereby fueling the market growth.
Furthermore, other factors that back the massive utilization of these services include the rising need for recruitment analysis by companies, growing user awareness, and the swift inclination of organizations toward using intelligence technologies. Nonetheless, as the potential of the internet & technologies is yet to offer various new internet advancements, the industry across the UAE shall witness a positive influence and presence of untapped opportunities for the leading players during the forecast period.
