A talent blog took Inc Magazine’s top 5000 fastest-growing companies, separated out the HR related companies and studied them.
• Business service providers lead the pack in revenue growth
• Management consulting firms earn highest revenue per employee
The study represented 5 years of company listings, and they managed to compare the relative growth of the represented companies from 2007 to 2012. They segmented the groups into 5 categories: Business Service Providers (like RPOs for example), Staffing & Recruiting, Tech., and Management Consulting were among the list.
I’ll let you read the report for yourself which located free, and in full here, but the gist of it is that consultants creates more earning per employee than any other model in our industry, and that there is a trend towards using process outsourcing which is why growth is clearly seen in that part of the industry.
I find this study very interesting because it highlights a trend which seems evident to most professionals in those industries. I remember the days when RPOs were a new concept, and today it seems like they’re everywhere. On the other hand, because of the complexity of the integration of HR into business processes, I can totally understand why there is significant growth within the BPO industry which is geared towards HR-though that complexity itself is why revenue growth is not coupled with profit growth.