Human Resource Professional Services Market Size, Share & Trends Analysis Report By Service, By Deployment (On-Premise), By Enterprise Size (Large Enterprise), By End Use, By Region, And Segment Forecasts, 2025 - 2030

Market Size & Trends

The global human resource professional services market size was valued at USD 6.39 billion in 2024 and is projected to grow at a CAGR of 13.4% from 2025 to 2030. Growth of this market is primarily driven by factors such as increasing diversity of human resources, growing inclusion of technology advancements, the focus of multiple organizations on reducing operating costs, and growing inclination towards automating human resource (HR) processes and integration of modern technologies such as big data analytics, artificial intelligence, and more.

Automating multiple business processes to attain enhanced performance and reduce costs has become a trend in recent years. Large-scale transformation of operational workflows, business process management, and strategy implementation driven by modern technologies such as Artificial Intelligence (AI), big data analytics, Internet of Things (IoT), and others have generated major changes in multiple areas, including human resource management. Companies now prefer automation of the HR processes by integrating advanced technologies. This has resulted in adopting professional services and sophisticated solutions related to multiple HR functions, including recruiting, talent management, employee engagement, employee welfare management, taxation and insurance, training and development, workforce planning & analytics, payroll, employee attendance, and others.

Regulations related to business laws, availability of advanced technology solutions, and change in the approach of multiple industries stimulated by the technology-driven Industry 4.0 revolution have generated an upsurge in demand for the human resource professional services market. Industries such as retail, education, healthcare, IT & telecom, and others have focused on core business areas while adopting professional services or technology-based innovations for other business functions.

There is an increasing need to manage additional human resource activities such as strategic decision-making and aligning an organization’s goals, vision, and mission in line with HR functions. Organizations prefer to opt for HR professional services for regular administrative human resource functions to dedicate additional time for decision-making and analysis. Significant advancements in big data analytics and artificial intelligence (AI) have occurred over the last decade. These technologies are being deployed by organizations to manage large volumes of human resource data and gain significant insights into the overall performance of an organization. Predictive analytics helps organizations make better decisions and maximize their capital by retaining human resources.

Increasing demand for flexibility in accessing data about leaves, attendance, work schedules, and training modules is expected to boost market growth over the forecast period. These services offer better communication, professional assistance, online access to personal data, and employee performance evaluation. Leading market players are constantly updating and modifying their services to maintain competitiveness, further creating new growth opportunities for market expansion. For instance, in May 2024, one of the key players in this market, PwC’s Middle East business, announced a newly established strategic partnership with organizational design and planning solutions company, Orgvue.

Service Insights

Based on services, the core HR services segment dominated the global market with a revenue share of 32.9% in 2024. In recent years, instead of employing in-house teams, multiple organizations have chosen professional services offered by the key players in the market to ensure seamless operational workflows, reduced costs, and enhanced efficiency while embarking upon personal digitization goals. The growing need for organizations to automate the business processes related to human resource functions drives the growth of this market. Most organizations implement core HR systems to carry out traditional human resource activities and offer adequate time to personnel and managers for strategic decision-making.

The talent management segment is projected to experience the fastest CAGR of 16.1% from 2025 to 2030. Talent management services enhance workflow and help improve the overall productivity of an organization through career and succession planning, time and attendance tracking, and workforce and employee benefits management, such as annual bonuses, leaves, and insurance. They also aid in improving employee retention. Businesses have focused on employing professional services to systematically attract top talents, identify potential gaps between actual and desired performances, engage employees in activities that enhance performances, retain valuable resources, and ensure those with critical roles in the organization stay with the company longer.

Deployment Insight

The on-premise deployment segment dominated the global human resource professional services market in 2024. This deployment method allows largescale customization of products and services while increasing flexibility. Furthermore, it helps improve cost efficiency in terms of the total cost of ownership and sets up a control center in an organization to coordinate and manage various human resource management tasks (HRM). Organizations that value complete control over processes, improved data security, and customized services are choosing on-premise deployment of human resource professional services.

The hosted deployment segment is expected to experience the fastest CAGR during the forecast period owing to the rapid pace of digital transformations, increasing focus on the adoption of cloud computing, and rising demand for cloud-based services linked with multiple benefits such as scalability, cost savings, flexibility, and availability across domains, locations, and teams with remote monitoring access. The significant benefit of this deployment method is that organizations using hosted services need not upgrade; service providers upgrade system software and services as and when required.

Enterprise Size Insights

The large enterprise segment dominated the global market for the human resources professional services market in terms of revenue in 2024. Ability to invest upfront, presence of large, diverse teams, increasing dependency on data-driven strategic decisions, rising focus on inclusion of modern technologies, complexities associated with processes due to large scale including payroll, performance management, talent management, recruitment, employee collaboration, and more. Cost-effective professional services offered by numerous service providers, the rising focus of multiple organizations on automating the HR processes, and the convenience offered by innovation-based technology are projected to drive demand.

Small and medium enterprises (SMEs) are anticipated to emerge as the fastest-growing segment over the forecast period. The number of SMEs operating in developing economies such as China, India, and Japan is increasing rapidly, and they are increasingly implementing robust solutions to optimize their business capabilities. Increasing government initiatives and various digital SME campaigns across the globe are expected to further drive the growth of this segment through 2025. Increasing implementation of information technology infrastructure by SMEs and automation of HR processes are expected to boost segment growth.

End Use Insights

IT & telecom sector dominated the global human resource professional services market in 2024. An increase in the efficiency of HRM capabilities of organizations is attributed to the growth of the IT and telecom industry and the integration of big data and machine learning into HR professional services. This is expected to further propel the segment over the forecast period. The inclusion of the latest innovations, availability, and accessibility of high-speed internet services, the changing nature of global businesses, cross-functional team projects, and diverse teams in the IT & telecom industry are adding to the growth opportunities for this segment.

The retail sector is expected to emerge as the fastest-growing segment over the forecast period. The adoption of HR professional services allows retailers to focus on their core tasks while implementing improved HRM techniques. Furthermore, the rapid growth of the retail industry has resulted in largescale hiring of employees, which creates employee retention issues. Largescale hiring can lead to difficulties in efficiently managing a massive workforce in any organization. As a result, many employees often switch jobs if they are unsatisfied with human resource services. These professional services are therefore being adopted to overcome these challenges associated with employee retention. The increasing influence of technology on industry, the emergence of the latest technologies in areas such as warehousing and shipping, and the continuous growth experienced by the e-commerce sector are some of the key growth-driving factors.

Regional Insights

North America dominated the global HR professional services market with a revenue share of 34.2% in 2024. The presence of multiple large enterprises operating in numerous industries such as IT and telecom, automotive, manufacturing, mining, aerospace, military and defense, and others, the growing availability of advanced technology tools, the inclination towards adoption of automated services, and businesses' focus on cost reduction are some of the key growth driving factors for this market.

U.S. Human Resource Professional Services Market Trends

The U.S. HR professional services market dominated the regional market with a substantial revenue share in 2024. The robust IT & telecom industry in the U.S., the presence of multiple key market participants in the country, the rising focus on the adoption of modern technologies, increasing intelligent process automation trends, and the presence of the most diverse workforce are projected to drive the demand for human resource professional services. The emergence of e-commerce as a rapidly growing sector, challenges associated with managing large groups of human resources in the retail industry, and the presence of prominent global retail organizations are adding to the growth opportunities for this market.

Europe Human Resource Professional Services Market Trends

Europe was identified as one of the most lucrative regions for the global human resources professional services market in 2024. The rapid pace of digital transformations, increasing inclusion of advanced technology solutions, availability of sophisticated professional services associated with core HR, recruiting, talent management, and other functions, and rise in human resource diversity are driving the growth of the regional industry.

Germany held the largest revenue share of the Europe human resource professional services market in 2024. The presence of numerous large enterprises in the manufacturing industry, priority to adopt advanced technologies, innovation-based service availability, and changes in the focus of multiple organizations from expansion to performance enhancements and cost reductions.

Asia Pacific Human Resource Professional Services Market Trends

Asia Pacific human resource professional services market is projected to experience the fastest CAGR of 15.4% from 2025 to 2030. The presence of multiple business process outsourcing organizations in the region, growing inclination towards adoption of advanced technology assistance solutions for core HR functions, a large number of small and medium scale businesses operating in the region, and growth in the development of innovation-based services offerings is expected to influence the demand in this regional market.

Japan human resource professional services market dominated the regional market in 2024 owing to focus of organizations on employee well-being, stringent labor laws of state, compliance adherence requirements, benefits associated with automation of HR function, growing inclusion of modern technologies such as big data analytics, AI and others.

Key Human Resource Professional Services Company Insights

Some of the key companies operating in the human resource professional services market include Accenture, ADP, Inc., Workday, Inc., Ernst & Young Global Limited, and others. Key organizations are adopting strategies such as collaborations, partnerships, acquisitions, service offering enhancements, and more to address growing competition and the increasing pace of technology advancements.

• Workday Inc., one of the prominent companies in technology-driven solutions and services for finance and human resources, offers enterprise cloud applications to multiple companies, ranging from small to medium-scale organizations to large enterprises operating worldwide in multiple regions.

• Accenture, a major market participant in the technology and innovation sector, provides services and solutions related to cloud computing technology, emerging technologies, strategic managed services, talent and organization, Metaverse, Intelligent talent and HR operations, supply chain, finance, and others.

Recent Developments

• In June 2024, Colorado State University, a prominent educational industry participant in the U.S., selected Workday Inc., a major human resource services provider, as the university’s new human capital management system facilitator. Workday Inc. is expected to install and manage its solution in the university's Fort Collins, Pueblo, and Spur locations and the system office as well.

• In May 2024, Accenture, a major market participant in the technology and innovation sector, was named the Official Business and Technology Consulting Partner for the National Football League (NFL). The newly formed partnership for five years aims to utilize the company’s advanced technology to shape a better future for the game.

• In February 2024, Workday, Inc. and Insperity, a prominent HR solutions provider in the U.S., joined forces to develop and deliver a new full-range HR solutions designed for small and medium-scale businesses.

Human Resource Professional Services Market Report Scope

Global Human Resource Professional Services Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global HR professional services market report based on service, enterprise size, deployment, end use, and region.

• Service Outlook (Revenue, USD Billion, 2018 - 2030)

  • Core HR

  • Employee Collaboration & Engagement

  • Recruiting

  • Talent Management

  • Workforce Planning & Analytics

  • Others

• Enterprise Size Outlook (Revenue, USD Billion, 2018 - 2030)

  • Large Enterprise

  • SMEs

• Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

  • Hosted

  • On-premise

• End Use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Academia

  • BFSI

  • Government

  • Healthcare

  • IT & Telecom

  • Manufacturing

  • Retail

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

    • Indonesia

    • Thailand

    • Singapore

  • Latin America

    • Brazil

  • MEA

    • South Africa

    • Saudi Arabia