Following the footsteps of Information technology there has been a boom in the HRO industry. With 2.75 million HR staff currently under direct operation in HRO (globally) and a worldwide market of about $70 Billion USD (approx). This is not at all surprising. HRO enables prompt and efficient delivery, automated processing and savings up to 40% of cost. Hence global organizations are in a hurry to centralize their HR management and place the operation functions on somebody else’s shoulders.
After India, developing countries such as Malaysia, South Africa, Philippines, Eastern Europe, Russia, Mexico, etc. have gotten into the role of the service provider and are doing fairly well. In such a case, India has to develop different strategies to be at par with other developing nations. In fact, human resources outsourcing has grown up from the payroll services to full business process outsourcing deals. The new phenomenon of BTO (business transformation outsourcing) has evolved and will soon be practiced across nations.
With government organizations outsourcing their HR functions, Zinnov estimates a continual rise in demand for HR outsourcing services across industries and expects HR to be the most commonly offshored/outsourced process.