UAE HR Outsourcing Services Market Anticipates 8.96% CAGR through 2027, Fueled by Rising Popularity

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Written By Sonu Bhatt

UAE HR Outsourcing Services Market Overview

The UAE HR Outsourcing Services Market is estimated to grow at a CAGR of about 8.96% during the forecast period, i.e., 2022-27, driven by thoroughly examined factors outlined in the study. The UAE HR Outsourcing Services Market Report by MarkNtel Advisors provides a comprehensive evaluation of the market outlook up to 2027. The UAE’s economic diversification away from oil is driving a surge in business establishments, prompting a demand for HR outsourcing services.

Government focus on non-oil sectors, coupled with increased awareness of service benefits, is boosting the adoption of these services for efficient organizational management. The rise of digital platforms in recruitment amplifies the popularity of HR outsourcing, optimizing resources and driving market growth. Factors such as recruitment analysis, user awareness, and a shift towards intelligent technologies contribute to the industry’s expansion. With untapped opportunities emerging from internet advancements, the UAE’s HR outsourcing market is poised for positive growth during the forecast period.

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A Substantial Surge in Demand for Payroll Services, Significantly Contributing to The HR Outsourcing Market in the UAE, Says Report

This surge is primarily attributed to the increasing awareness among businesses regarding the substantial benefits offered by these services, encompassing legal, tax, and accounting support. These services ensure accurate and timely disbursement of employee paychecks, minimizing risks.

The provision of these services by external providers allows companies to efficiently manage their payroll, streamline legislative compliance, and alleviate the substantial administrative burden on their internal teams. As a result, there is a rapid escalation in the demand for payroll HR outsourcing services across various businesses in the UAE.

Moreover, these payroll services go beyond paycheck distribution, offering features that include incident registration and control, payroll calculation, payment distribution, as well as the management of leaves, vacation time, incentives, and other non-salary payments. This comprehensive suite of services is further enhancing the popularity and demand for payroll outsourcing among companies, thereby stimulating overall market growth throughout the UAE.

Hospitality Industry to dominate the UAE HR Outsourcing Services Market, says Report

The market has been categorized into,

Services

  • Payroll (Payroll Management, Loans & Other Benefits Processing, Payroll Master Data Management, Pension Administration, etc.)
  • Benefits Administration (Health Insurance, 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.))

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.))

Region (Dubai, Abu Dhabi, Sharjah & Rest of Emirates)

The UAE HR Outsourcing Services Market is deemed for significant growth, with the Hospitality Industry playing a key role. Fueled by a thriving tourism sector, establishments such as hotels, resorts, and restaurants are rapidly emerging, prompting a surge in demand for HR outsourcing services. The need to recruit skilled personnel for various roles in the hospitality sector, from front office to housekeeping and kitchen staff, is driving this demand. Similarly, the Healthcare industry is making substantial contributions due to increased government focus and investment in the sector, especially post-pandemic. Additionally, E-commerce, Retail, and Manufacturing sectors are embracing HR outsourcing to enhance digitalization efforts and improve customer-facing staff management, positively impacting brand image.

UAE HR Outsourcing Services Market Mergers/Acquisitions/Launches

The key players in the market are, 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, others.

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