IDC predicts increase in recruitment services spending
According to IDC, spending will increase at 7.7% per year to reach a market value of US$85.5 billion by 2007. <br>
Businesses are going to start spending more on recruitment and staffing services in an attempt to gain a competitive edge. According to a survey by IDC, spending will increase at 7.7% per year to reach a market value of US$85.5 billion by 2007.
However, the worldwide market for recruitment services in 2002 was worth $58.9 billion — 6.3% decrease in spending on 2001.
On the bright side there was an increase in demand for end-to-end hiring process automation technology and services.
“Although the worldwide and U.S. economic slowdown has negatively impacted online job boards and traditional recruiting and staffing services, we expect the market to stabilize and return to growth over the forecast period as economies recover,” says Marc Pramuk, senior analyst for HR Management and Staffing Services at IDC.
“Greater opportunities abound for providers of comprehensive hiring process automation – especially as the scope of these offerings expands to include internal hires as well as external applicants and as it links more strongly with clients' efforts to address retention, performance measurement and workforce optimisation,” he adds.
Economic and geopolitical uncertainty continues to be the biggest challenges facing recruiting service providers. IDC is predicting that the market won’t return to its 'historic' growth levels until 2004.
Consequently, service providers must adopt prudent strategies to position themselves to survive — and thrive — in the evolving marketplace.
The growing interest in workforce optimisation and performance management will provide recruitment service providers with a clear cut opportunity.