According to arvato’s UK Outsourcing Index, HR services were responsible for one-fifth of all UK outsourcing deals in 2014.

The Index found that £126 million worth of HR contracts were signed in the country last year, 90 per cent of which solely involved the private sector. According to Personnel Today, these deals also show signs that HR outsourcing is “evolving from transactional HR to more sophisticated strategic management services”.

Carol Haag, outsourcing specialist and managing consultant at PA Consulting Group, explained what’s driving this evolution: “The changes in HR have been ramping up extremely rapidly over the last three years.

“With Workday [a HR software system] exploding onto the market, it has driven the HRO providers to get to grips with cloud-based solutions as a base for delivering services, and this is really cutting a swathe through the HR solutions and outsourcing market.”

For more on this story, read the full piece by Personnel Today.

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