Global HR outsourcing renewal may bring in more jobs to India
BANGALORE : Most of human resource outsourcing (HRO) contracts coming up for renewal are likely to witness a significant restructuring .This shift is likely to see more such work being offshored to India.
Everest Group, in a study ‘Human Resources Outsourcing (HRO): End-of-Term Market in HRO’ said the areas of restructuring range from modifying the number and type of in-scope processes, to enhancing delivery models through global sourcing, to introducing alternative pricing models.
According to the research firm, about 75-85 % of engagements will likely be extended while 15-25 % will be repatriated or transferred to new suppliers. More than 111 HRO contracts, with a combined total contract value of about $6 billion, are nearing their term end in 2010-12 . Everest analysts foresee scope for reduction with largemarket buyers, whereas midmarket buyers will likely expand narrow scopes and leverage expanded supplier offerings that include talent management services.
