HROTodayGlobal

Special Report: APAC Selecting an HRO vendor is a vital part of the process, of course. Grupta advises APAC companies to seek providers that have a "deep heritage" in HR transformation, in addition to having the talent to pull it off. Both he and Choo recommend the selection of RFPs from vendors with a solid reputation for service, end-to-end HRO capabilities, and a geographical presence that aligns with their own footprint. Cummings concurs: "APAC companies must find a partner that is well established in their region." Another wise move is to vet providers fully by talking to companies in similar industries that have already gone through the outsourcing process. "Asian companies value stability in their partners, so they should also choose a partner that is well-positioned financially and organisationally for the future," Cummings says. "They should shy away from partnering with organisations in financial turmoil." Some additional advice for both Asian companies and global multinationals considering HRO is to "have local people talking to local people," Choo says. "The ability to build trust is a very important factor in doing business in Asia. It's okay to start the process with local salespeople who understand the needs and 'hot buttons' of the clients, but at some point—to get to a decision maker—senior management and senior operations people will have to introduce themselves into the mix." Down the Line Each of the interviewees was asked where they thought HRO would be in five years in the APAC region. All were bullish on the prospects. "We see this as a huge growth opportunity," Cummings says. "As Asian companies continue to expand globally, they will need partners to help them set up and become established in these new territories. At the same time, they will continue to look for process improvements in their non-core activities, which will continue to drive the HRO market in Asia." Since the number one challenge facing HR executives in Asia at this time is talent management—finding, training, and retaining top talent—Cummings believes RPO is well positioned for growth. "Many organisations have already started looking for partners to help them overcome talent management issues to allow them to focus on their organisational goals," he says. Singh cites the current economic turmoil in the U.S. and Europe as compelling many multinationals in APAC to reexamine their HR strategies. "HR and HR-related businesses thrive when organisations are on the aggressive investment and growth path, as opposed to today's conservative operating approach that most businesses are adopting," he explains. "However, APAC still holds on to its better growth positioning as compared to the U.S. and Europe. Compared to the West, the market size for outsourcing of benefits, RPO, payroll, learning, and multi-process HRO is much smaller in APAC at present, but the growth rate maintained so far puts this market in a very promising stage in five to seven years." Sundarason also predicts major growth opportunities for HRO, noting that SaaS (Software-as-a-Service) and cloud computing five years from now will be far more advanced, offering opportunity for HRO advancement in APAC. And Grupta cites two separate surveys that further indicate a strong uptake, despite the commercial and cultural impediments presently at play. "One by Everest Group predicts an 8 to 10 percent growth of the global HR BPO market, and another BPO analyst firm, Nelson Hall, similarly indicates a 10 percent boost in confidence in the sector," he says. Five years from now, Grupta contends there will also be broader adoption of HR BPO in the APAC mid-market, as companies look to streamline their processes and enhance their HR service delivery capability. As for the main threat to the growth of the HRO industry in APAC, Preeti minces no words: "The chief obstacle is the ability of HR leaders to prepare their businesses to properly engage with strategic HRO partners." In other words, the time has come to get the ball rolling. SUMMER 2011 | www.hroglobal.com [15]

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