Human resources outsourcing increase set to boost Capita HR Solutions profits

A renewed surge in human resources outsourcing will help provider Capita HR Solutions beat its record-busting 2006 in 2007 and again this year, according to its managing director.

Wayne Story told Personnel Today that every big company in the UK would look to outsource its people management to a specialist provider in the coming months.

HR deals with the BBC, Fujitsu Services and DSG International helped the Capita Group make pre-tax profits of £200m in 2006.

Story said: “We had a record-breaking year in 2006, but we expect to see higher profits in 2007 – and 2008 will be even bigger.”

HR outsourcing will continue to grow as companies look to get more measurable results from the function at a lower cost, he said.

Story said the trend to farm out HR would put outsourcing firms in pole position to recruit top graduates.

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