The India human resource outsourcing market size reached USD 8.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 13.9 Billion by 2033, exhibiting a growth rate (CAGR) of 5.5% during 2025-2033. The market is expanding due to the rising demand for AI-driven recruitment, payroll automation, and compliance management. Additionally, businesses are leveraging HR technology, talent acquisition services, and workforce analytics to enhance efficiency, reduce costs, and streamline operations, driving significant growth across industries.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 8.6 Billion |
Market Forecast in 2033 | USD 13.9 Billion |
Market Growth Rate 2025-2033 | 5.5% |
Growing Demand for HR Technology and Automation
The India human resource outsourcing (HRO) market is seeing a rapid shift toward HR technology and automation, driven by businesses seeking efficiency, cost savings, and scalability. Companies are increasingly adopting AI-driven recruitment tools, automated payroll management, and cloud-based HR platforms to streamline processes. For instance, as per industry reports, approximately 93% of Indian hiring managers find it acceptable for candidates to use generative AI to refine their resumes or application materials. This trend is notably important among multinational corporations and accelerating enterprises that need seamless talent acquisition, employee management, and compliance handling across many sites. Another major trend driving this element is the rise of HR analytics, which helps organizations in data-driven recruitment, employee retention, and improved productivity at the workplace. Besides this, there is a preference now for end-to-end digital HR solutions that reduce manual intervention and give surety about accuracy. With increasing demand for automated solutions for workforce management, HR outsourcing is looking towards innovation to provide tailored, technology-oriented services in meeting the changing business demands.
Expansion of Recruitment Process Outsourcing (RPO) Services
The recruitment process outsourcing (RPO) segment in India’s HRO market is expanding as companies look for specialized talent acquisition strategies to address skill shortages and workforce demands. For instance, as per industry reports, India's Recruitment Process Outsourcing (RPO) market will reach USD 420 Million by 2027. Businesses across sectors such as IT, BFSI, healthcare, and e-commerce are increasingly outsourcing end-to-end recruitment functions, including candidate sourcing, screening, interviewing, and onboarding. Moreover, RPO providers are leveraging AI-powered hiring tools, video interviews, and skills-based assessments to enhance hiring speed and efficiency. The rising demand for contract staffing and flexible workforce solutions is also driving RPO adoption, especially among tech firms and global enterprises entering India’s job market. Additionally, remote work adoption has expanded the talent pool, making RPO firms essential in managing global talent pipelines and virtual hiring strategies. Besides this, Indian HRO firms are strengthening their expertise in diversity hiring, employer branding, and talent retention strategies, ensuring they provide clients with cost-effective and high-quality recruitment services in a competitive job market.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on type and end user.
Type Insights:
The report has provided a detailed breakup and analysis of the market based on the type. This includes payroll, recruitment process, benefits administration, multi process human resource, learning services, and others.
End User Insights:
A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes IT and ITES, BFSI, healthcare, hospitality, retail, and others.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Types Covered | Payroll, Recruitment Process, Benefits Administration, Multi Process Human Resource, Learning Services, Others |
End Users Covered | IT and ITES, BFSI, Healthcare, Hospitality, Retail, Others |
Regions Covered | North India, South India, East India, West India |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |