With 105,000 employees in 44 countries and a six-person corporate HR function, Swedish home furnishing retailer IKEA is blazing new trails in selective HRO. As a family-owned company that has avoided public stock markets, it can take the long view. And HRO is a part of its transformation plan. But just wait until you read what HR functions the big-box store will never outsource.

When we started HRO Today in 2002, we knew that taking it to Europe meant a separate magazine—and that was how HRO Europe was started in 2003. Fast forward to 2007, and Europe is now 23 countries and 23 official languages. What does that mean for HRO Europe? Read on.

Despite slow market growth on the continent, Europe is the birthplace of HRO. As employers grow more comfortable with outsourcing, look for HRO to heat up.

Our annual listing of European of service providers.

The market is maturing, and clients are becoming more sophisticated in the way that they contract, yet one outsourcing skill is so underdeveloped that it’s putting all outsourcing relationships at risk.

As HRO matures, the employee headcount threshold for engaging outsourcing steadily declines. Mid-market buyers now have greater choices as more providers expand their market reach.

The Buyers’ Group data reveal stabilizing pricing and changes in buyer preference. Adoption of transform-and-transfer gains greater acceptance among enterprise buyers.

Whipping a vendor into shape shouldn’t require a heavy hand or heavy wallet. Consider the ultimate consequences of financial penalties. merely inflicting pain on the provider will do little to create trust and goodwill.

While domestic HRM software may serve your needs today, a myopic view may carry a hefty price when it’s time to grow beyond domestic boundaries.

As European companies grow increasingly comfortable with outsourcing, turning recruitment over to a third party is becoming less of a threat to internal staff.