Market Research Report

The UAE HR Outsourcing Services Market Research Report Forecast: (2022-2027)

By Services (Payroll (Payroll Management, Loans & Other Benefits Processing, Payroll Master Data Management, Pension Administration, etc.), Benefits Administration (Health Insuranc...e, Retirement Accounts, Vacations & Leaves, Employee Visa Processing Services, Employee Data Administration, etc.), Recruitment Process (Talent Acquisition, Recruiting, etc.), Learning Services (Talent Development & Management, Employee Collaboration & Engagement, etc.), Multi Process Human Resource (HR Tools, Workforce Planning & Analytics, Budgeting, Integrated HR Services, etc.), Others (Leave & Attendance Management Compliance, HR consultancy etc.)), By End-User (Government, Oil & Gas, Healthcare, Public Utilities (Aviation, Infrastructure Facilities, Ports, etc.), Others (IT & ITES, Education, etc.), Non-government, Healthcare, IT & ITES, Hospitality, BFSI, Others (E-commerce & Retail, Manufacturing, etc.)), By Region (Dubai, Abu Dhabi, Sharjah & Rest of Emirates), By Company (HR Outsourcing Services Providers,( 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,), Manpower Providers( World Star Manpower Solutions, BCC Manpower Services, Naithils General Contracting LLC, Marmoom Manpower Solutions, Abu Dhabi Manpower Supply(ADMS), Gulf Oasis Manpower Supply LLC, Spectra Force)) Read more

  • ICT & Electronics
  • Jul 2022
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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: 

  • Professional Employer Organizations (PEOs) look after the management of the employees & the clients while providing HR & administrative services.
  • Administrative Service Organizations (ASOs) are the other type that also provides HR & administrative services and is popularly availed by different organizations across the UAE.

The other varieties of HR Outsourcing services include the following:

  • Multi-Process Human Resource Outsourcing
  • Recruitment Process Outsourcing
  • Learning Services Outsourcing

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.


The UAE HR Outsourcing Services Market Research Report Forecast: (2022-2027)

Market Segmentation

Based on Services:

  • Payroll 
  • Benefits Administration 
  • Recruitment Process 
  • Learning Services 
  • Multi-Process Human Resource 
  • Others 

Of them all, Payroll services are anticipated to witness burgeoning demand and contribute significantly to the UAE HR Outsourcing Market during the forecast period. It owes principally to the growing awareness among businesses about the prominent perks of these services like legal, tax, and accounting support, ensuring that the employees receive their paychecks accurately & timely, with minimal risks.

Besides, these services are delivered by an external provider, enabling the company to manage its payroll & simplify legislative compliance while taking off the massive administrative burden from the team. Hence, the demand for payroll HR outsourcing services is escalating rapidly among different businesses in the UAE.

Furthermore, their payroll services also allow the business companies to register & control incidents, calculate, pay, & distribute payroll, and manage leaves, vacation time, incentives, and other payments that are not a part of the employee salary. It, in turn, is boosting the popularity & demand for these services among companies & stimulating the overall market growth across the UAE. 

Based on End-Users:

  • Government
  • Non-government
    • Healthcare
    • IT & ITES
    • Hospitality
    • BFSI
    • Others (E-commerce & Retail, Manufacturing, etc.)

Here, Here, Hospitality Industry across the Non-Government end-user is anticipated to make a substantial contribution to the UAE HR Outsourcing Services Market during the forecast period. It owes principally to the massive tourism in the country, demonstrating a substantial influx of tourists, migrants, & pilgrims. As a result, the establishment of various hospitality facilities like hotels, resorts, restaurants, cafes, and other facilities is accelerating rapidly.

It, in turn, is instigating companies to procure HR outsourcing services to hunt for talented candidates that can work with hotels, restaurants, resorts, event spaces, banquet halls, and catering companies, among others. These talent acquisitions are principal to finding suitable forces to manage the front office, back office, housekeeping, kitchen, & other positions. Hence, the demand for these services is escalating rapidly & cater to the burgeoning requirements in the hospitality industry throughout the UAE.

On the other hand, the Healthcare industry shall also make significant contributions to the industry through 2027. It owes principally to the growing government focus on diversifying the economy away from oil & gas, demonstrating substantial investments in other industries, including the healthcare sector. In addition, especially after the pandemic, the establishment of healthcare facilities with robust facilities rose dramatically high to address the exponential patient influx.

It, in turn, stimulated the demand for HR Outsourcing Services to set up a robust management team to look after the diverse requirements of facilities & patient care. Moreover, as the government is strengthening the healthcare industry to attract medical tourism to the country, the demand for HR outsourcing services is anticipated to witness an upsurge and contribute to the overall industry expansion in the coming years.

Nonetheless, other sectors like E-commerce & Retail, Manufacturing, etc. shall also gain momentum in the market during the forecast period. As these sectors are increasingly integrating digitalization to widen the product & service offerings & customer base, the need for excellent HR mechanisms is stimulating the industry & driving the demand for outsourcing services.

Moreover, HR outsourcing services in these sectors understand the importance of managing staff as the perception of customers can significantly influence the behavior of front-line retail staff. Therefore, several businesses in these sectors are procuring outsourced services & training the staff to handle customer queries & complaints, thereby building a positive brand image.

Possible Restraint

  • Disconnection with Staff & Cultural Alterations Restraining Organization to Procure Services

Since HR Outsourcing Services are diverse, it also brings challenges for the investors like disconnection with the staff. When these services are transferred to computer software or offsite third parties for management, it somewhat loses the connection between the employees and sometimes does not entirely understand the needs of employees.

Moreover, no when understands the office culture better than the employees themselves. Hence, when the services are outsourced to third parties or computers, team members might feel insecure, less engaged, & even less productive at times. It is also why several organizations are restraining themselves from opting for HR outsourcing services and hampering the fledged market growth. 

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the UAE HR Outsourcing Services Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the UAE HR Outsourcing Services Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the UAE HR Outsourcing Services Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the UAE HR Outsourcing Services Market study?

Frequently Asked Questions

   A. The UAE HR Outsourcing Services Market is projected to grow at a CAGR of around 8.96% during 2022-27.

   A. Disconnection with staff & advent of cultural alterations in organizations might restrain companies from procuring these services and hamper the fledged growth of the UAE HR Outsourcing Services Market through 2027.

   A. Healthcare is anticipated to emerge as an area of remunerative opportunities for the leading players in the UAE HR Outsourcing Services Market during the forecast period.

  1. Market Segmentation
  2. Introduction
    1. Research Process
    2. Assumption
    3. Market Definition
  3. Executive Summary
  4. The UAE HR Technology Start-Up Ecosystem, 2017-2022
    1. Entrepreneurial Activity
    2. Year on Year Funding Received
    3. Funding Received by Top Companies
    4. Key Investors Active in the Market
    5. Series Wise Funding Received
      1. Seed Funding
      2. Angel Investing
      3. Venture Capitalists (VC) Funding
      4. Others
  5. The UAE HR Outsourcing Services Market Customer Trends
    1. Trends in Human Resources Industry from Customers’ Standpoint
    2. Demanding Skills of the Future
      1. Engineering Skills
      2. IT & Technology-based Skills
      3. Skills Required for Nursing, Analytics, Sales, etc.
    3. Trends in Manpower Supply Services (from customer & solution providers)
  6. The UAE HR Outsourcing Services Market Labor Laws, Regulations & Licenses
  7. The UAE HR Outsourcing Services Market Dynamics (including HR Outsourcing Services & Manpower Supply)
    1. Drivers
    2. Challenges
  8. The UAE HR Outsourcing Services Market Hotspot and Opportunities
  9. The UAE HR Outsourcing Services Market Key Government Projects Pipeline
  10. The UAE HR Outsourcing Services Market PESTLE Analysis
  11. The UAE HR Outsourcing Services Market Outlook, 2017-2027F
    1. Market Size and Analysis
      1. By Revenues in USD Million
    2. Market Share and Analysis
      1. By Services
        1. Payroll (Payroll Management, Loans & Other Benefits Processing, Payroll Master Data Management, Pension Administration, etc.)
        2. Benefits Administration (Health Insurance, Retirement Accounts, Vacations & Leaves, Employee Visa Processing Services, Employee Data Administration, etc.)
        3. Recruitment Process (Talent Acquisition, Recruiting, etc.)
        4. Learning Services (Talent Development & Management, Employee Collaboration & Engagement, etc.)
        5. Multi Process Human Resource (HR Tools, Workforce Planning & Analytics, Budgeting, Integrated HR Services, etc.)
        6. Others (Leave & Attendance Management Compliance, HR consultancy etc.)
      2. By End-User
        1. Government
          1. Oil & Gas
          2. Healthcare
          3. Public Utilities (Aviation, Infrastructure Facilities, Ports, etc.)
          4. Others (IT & ITES, Education, etc.)
        2. Non-government
          1. Healthcare
          2. IT & ITES
          3. Hospitality
          4. BFSI
          5. Others (E-commerce & Retail, Manufacturing, etc.)
      3. By Region
        1. Dubai
        2. Abu Dhabi
        3. Sharjah & Rest of Emirates
      4. By Company
        1. Comparison of Business Model Adopted by Key Players in the UAE
        2. Competition Characteristics
        3. Revenue Shares
  12. The UAE Labor Market Overview, 2017-21
  13. The UAE Manpower Supply Market Overview
    1. Demand & Supply Gap Analysis
  14. The UAE Sector Wise Current Contracts, 2017-22
  15. The UAE Manpower Supply Market Outlook, 2017-2027F
    1. Market Size and Analysis
      1. By Revenues in USD Million
    2. Market Share and Analysis
      1. By Manpower Type
        1. Blue-Collar
        2. White-Collar
      2. By End-User
        1. Government
          1. Oil & Gas
          2. Healthcare
          3. Public Utilities (Aviation, Infrastructure Facilities, Ports, etc.)
          4. Construction
          5. Others (Public entities, IT & ITES, Education, etc.)
        2. Non-government
          1. Healthcare
          2. IT & ITES
          3. Hospitality
          4. BFSI
          5. Construction
          6. Others (E-commerce & Retail, Manufacturing, etc.)
      3. By Region
        1. Dubai
        2. Abu Dhabi
        3. Sharjah & Rest of Emirates
      4. By Company
        1. Competition Characteristics
        2. Revenue Shares
  16. Competitive Outlook
    1. Company Profiles & SWOT Analysis (Key Clients, Financials, Services Offered, Company Size, Year of Establishment, No. of Branches, and HO Details)
      1. HR Outsourcing Services Providers
        1. Sovereign Group
        2. JAMS HR Solutions
        3. Intelligent Business Technologies LLC (IBT)
        4. HLB HAMT
        5. Nathan & Nathan
        6. AMS International FZ LLC
        7. Transguard Group
        8. Dulsco
        9. TASC Outsourcing
        10. Ultimate HR Solutions
        11. Sundus Recruitment Services LLC
        12. Al Mansoor Enterprises LLC
        13. Axxon HR Solutions
        14. Others
      2. Manpower Providers
        1. World Star Manpower Solutions
        2. BCC Manpower Services
        3. Naithils General Contracting LLC
        4. Marmoom Manpower Solutions
        5. Abu Dhabi Manpower Supply(ADMS)
        6. Gulf Oasis Manpower Supply LLC
        7. Spectra Force
        8. Others
  17. Disclaimer


The UAE HR Outsourcing Services Market - Segmentation Slide