Saudi Arabia HR Outsourcing Services Market Overview: 2025-2030
Base Year: 2024
Historical Years: 2020–23
Forecast Years: 2025-2030
The Saudi Arabia HR Outsourcing Services Market is projected to grow at a CAGR of around 7.2% during the forecast period, i.e., 2025-2030.
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Saudi Arabia HR Outsourcing Services Market Dynamics: 2025-2030
Saudi Arabia HR Outsourcing Services Market Driver
Complexity of Compliance & Labor Regulations Leading to a Surging Adoption of HR Outsourcing Services – Saudi Arabia has a highly regulated labor market with numerous laws, regulations, and compliance requirements. The country has strict labor laws, such as the Labor Law, Nitaqat (Saudization) program, and the Wage Protection System (WPS), which require meticulous adherence by employers. The introduction of reforms like the Labor Reform Initiative (LRI) in 2022 has added to the regulatory landscape. These regulations encompass areas like labor contracts, employee rights, wages, working hours, and expatriate worker quotas. These rules are frequently updated, making it challenging for businesses, especially those new to the country, to stay compliant. Thus, businesses that are expanding their presence in Saudi Arabia are opting for outsourcing HR services to gain business expertise in navigating this complex landscape.
Additionally, non-compliance with labor laws & business standards in Saudi Arabia results in penalties and operational disruptions. Thereby, fueling the demand for HR outsourcing services to mitigate these risks & maintain good standing with government authorities in Saudi Arabia.
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Saudi Arabia HR Outsourcing Services Market (2025-30): Segmentation Outlook
The market report has segmented the market into the following categories:
By Services
-Payroll- Market Size & Forecast 2020-2030, USD Million
-Benefits Administration- Market Size & Forecast 2020-2030, USD Million
-Recruitment Process- Market Size & Forecast 2020-2030, USD Million
-Learning Services- Market Size & Forecast 2020-2030, USD Million
-Multi Process Human Resource- Market Size & Forecast 2020-2030, USD Million
-Others (HR consultancy etc.)- Market Size & Forecast 2020-2030, USD Million
Multi-process Human Resource services are gaining noticeable traction in Saudi Arabia.
By End User
-Oil & Gas- Market Size & Forecast 2020-2030, USD Million
-BFSI- Market Size & Forecast 2020-2030, USD Million
-Hospitality- Market Size & Forecast 2020-2030, USD Million
-Healthcare- Market Size & Forecast 2020-2030, USD Million
-IT & Telecom- Market Size & Forecast 2020-2030, USD Million
-Public Utilities (Aviation, Infrastructure Facilities, Ports, etc.)- Market Size & Forecast 2020-2030, USD Million
-Others (Education Institutions, etc.)- Market Size & Forecast 2020-2030, USD Million
By Region
-Central
-East
-West
-South.
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Top Companies Operating in the Saudi Arabia HR Outsourcing Services Market:
-Sovereign Group
-Nathan & Nathan
-Miza Business Solutions
-Tharwah
-Respeed
-IRSAA Business Solutions
-The First National Human Resources Company (FNRCO)
-ETISAL International
-Marcom Arabia
-Raya Customer Experience.
Industry Recent Development:
- 2022: RAYA CX, signed a strategic partnership contract with Zain Saudi Arabia a communications and digital service company. Under this partnership deal, RAYA CX would provide outsourcing services to Zain Saudi Arabia.
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