HR outsourcing a big hit in Asia Pacific
Outsourcing HR processes is a booming business in Asia Pacific.
A study by Hewitt Associates showed that out of more than 500 companies in
Asia Pacific, almost 40 percent have already outsourced HR functions.
Hewitt expects HR outsourcing to peak at around US$ 2.5 billion in value
by the end of this year. From outsourcing payroll services alone, the
market is expected to boom ar more US$ 760 million.
But while projections are ripe, the study said outsourcing of HR processes
is still a relatively new concept to many companies in the region.
Nonetheless, those surveyed said they intend to outsource more than two HR
services over a period of time. Benefits administration was expressed as a
preference with training, medical claims processing, payroll and
recuritment also being considered.
Consequently, as part of the larger BPO sector, a lot of service providers
in countries like India, Malaysia, Philippines and Australia are jostling
for marketshare and are offering themselves to US and European
organisations as outsourcing centres.
