Issue link: http://www.e-digitaleditions.com/i/210252
HROA Pulse Poised for Growth HRO hit it big in some hot markets, but will other regions follow suit? By Craig Taylor It is rare to read a business magazine, website, or blog today without finding some reference to the emerging or growth economies. Recently, Goldman Sachs forecast that by 2050 the BRIC markets (Brazil, Russia, India and China) alone will account for 40 per cent of global gross domestic product (GDP) and make up four of the world's top five economies. Even today we can see how these markets have transformed the global economy. However, Goldman and many others believe that growth in the BRIC markets has peaked and it's time for other emerging economies to pick up the slack. "The markets we are looking at today are very different from before," says one supply-side director. "We are seeing a slowdown in Europe, which is really what EMEA used to be all about. But this has turned on its head. We are now seeing a lot of activity in the Middle East and Africa. Not only is there more locale investment happening in these regions, but more and more western companies—our existing and potential clients—are moving there, too. Our [Xchanging] defence customers, in particular, are really focusing on growth in the Middle East." The HR outsourcing industry was able to ride the wave of growth driven by the BRICs over the last decade. Will it do the same in other growth markets? Recently, the Human Resources Outsourcing Assocition's (HROA) directors discussed the role of HRO in emerging countries, focusing on Africa, Eastern Europe and the Arab States. Another board member adds, "One of our markets is the defence industry which is indeed, like many others, expanding in these emerging economies. But it is a slow process. Getting a footprint there and having links to locale employees is a big hurdle. I'm sure it's equally as challenging for service providers." AUTUMN 2013 | www.hroglobal.com [33]