Issue link: http://www.e-digitaleditions.com/i/210252
HROA Pulse is obviously important for their own economic growth. Saudization is a perfect example. The Saudi government has enforced a national policy to encourage employment of Saudi nationals in its private sector. Saudi companies carry a 10 per cent quota of employing national workers. They have a similar drive to employ more Saudi females. However, this is in conflict with the basic premise of outsourcing in its traditional sense, which is to take on the work and then reduce the headcount. The whole point of Saudization is to increase the headcount and employ more locale people. Such government legislation must be taken into account to ensure you have a workable business model." Taking the proverbial 'stick' approach to solve the talent shortage is one approach. But this doesn't always work. Saudization had limited success in its early days. In recognition of this, locale governments are investing in more proactive means to up-skill their national workforces. "Right now we're seeing most of the interest, growth, and investment in learning outsourcing," comments one board member. "I would think that three quarters of the contracts we are looking at in the Middle East are learning or learning-based in terms of the major content. So the foundations are absolutely being laid." It is clear that government-led initiatives often hold the key to successful market entry. Supporting such programmes not only helps cement strong relationships with the business community, but it's also where the investment is. Any organisation that can help national leaders achieve their transformation goals are more likely to get the support they need to accelerate their entry into these markets. Overall Outlook Western client practitioners whose organisations are serious about these markets face a different set of challenges than service providers. They will have to find ways to overcome the barriers and ensure their companies can establish operations in emerging markets. The difference is they don't really have a choice. As they explore the options available for support, it will quickly become apparent that their options are very limited. Locale providers can offer a mix and match solution, but this will certainly mean added complexity in management terms. Undoubtedly they will be looking to their western service providers for help, particularly if they don't have the capabilities or locale knowledge to do it all themselves. For service providers, it is arguably more about understanding the real potential for growth. They will need to ask whether they can mobilise quickly and how soon they will be able to start realising a return on their investment. The barriers are unique and potentially fraught with risk. Maybe locale partnerships or joint ventures hold the key? The case for investment in itself appears troublesome, which may lead many to dip their toes before committing fully. Setting up a locale sales office would seem like a sensible starting point. However, given the varying anomalies of each market, they may need to go further. A more effective strategy might be to focus on getting as close as possible to customers localely. This would mean tailoring propositions, using in-country supply chains, finding, employing and developing locale talent, as well as becoming a key part of the business community. When considering these emerging economies, there is no doubt that both client practitioners and vendors face some very difficult decisions. Neither should embark on their emerging market journey lightly. Craig Taylor focuses on marketing and business development for Xchanging HR Services. Contributors: Steve Riley, Accenture Bill Hart, Oracle Phil Cooper, AllegisTalent2 Darren Bartholomew, Selex Galileo Seb O'Connell, Randstad Sourceright Tim Johnson, ADP Paul Mallinson, Hays Steve Walsh, BAE Systems Margaret Spink, Xchanging Anthony Hesketh, Lancaster University Management School Andrea Schaffell, PA Consulting Gary Madden, BP Howard Nelson, IBM Sally Hunter, Kelly Services [36] HRO TODAY GLOBAL | AUTUMN 2013 Sarah Seabury, ISG Roger Robbertz, DSM