Issue link: http://www.e-digitaleditions.com/i/94708
Regional Report True North How outsourcing has taken off in the Nordic countries. By Russ Banham The shared history of the Nordic countries has given rise to similar political and economic systems across the region, a similarity that extends to the wide use of HR outsourcing by many companies and growing multi-country HRO engagements. Nevertheless, not all the countries' customs, laws, and regulations are alike, requiring a level of expertise to service clients that providers continue to aspire towards. The Nordic region comprises the countries of Denmark, Finland, Iceland, Norway, and Sweden and their associated territories, the Faroe Islands, Greenland, and Åland. Sweden represents almost 40 per cent of the Nordic population of 25 million people, whereas Iceland accounts for less than 2 per cent. The three other main countries represent about 20 per cent each. All the countries have open economies that have evolved from agricultural entities to industrialised companies, with large public sectors and high taxation supporting what are, in essence, social welfare states. Another common characteristic is a relatively high degree of economic interaction and integration across the region. Despite these commonalities, to label the Nordics a unified whole is not entirely accurate—after all, the region comprises four different languages and four different currencies. Nevertheless, the countries often act in lockstep when confronted with economic challenges and opportunities. After the financial crisis of 2008, which hit Iceland particularly hard, the Nordics have endeavoured to transform their economies even further away from its former agricultural base. Structural changes in the region include greater foreign ownership, an increase in mergers and acquisitions (particularly in the financial sector), and the expansion of both the service industry and technology industry sectors (read: Nokia and Ericsson). [32] HRO TODAY GLOBAL | FALL 2012