Today's blog on the need for HRO comes from Peter Allen, Partner and Managing Director, TPI.
The outsourcing roadside is littered with HRO deals that have hit the ditch. Why then would some of the top India-heritage providers be trying to catch this falling knife? As one executive told me, "Because there's market need and we can do this work".
Uncertainty is driving outsourcing demand, and fast-growing India-heritage service providers are making considerable investments to play in the HRO game. They are not intimidated by the failings of their predecessors and they blame focus on process over service as the reason for the early stumbles.
Rather than asserting theoretical best practices for the HR functions of recruiting, learning, workforce administration, and payroll, this new breed of providers are turning their operational practices into marketable services.
After all, is the poise really surprising? Who can argue that the likes of Wipro, Infosys, TCS and Genpact aren't actually foremost in the business of human capital management? These companies win or lose based on their ability to recruit, hire, train, deploy and manage people. Sure, it applies to a lot of companies and industries, but are others operating at the scale or pace of the India-based service providers? I doubt it.
One of the more eloquent and insightful industry analysts, Phil Fersht, recently published a blog entry on the eagerness of some of the Indian providers to enter the HRO market. I must say that Phil's comments match my recent experiences and skepticism.
I agree with Phil, this move should be taken very seriously. The pragmatic approach to the HRO market is gaining traction.
