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Wednesday, September 20, 2006

Human Resources Business Process Outsourcing (HR BPO) represents the biggest component of the overall BPO market in Asia Pacific

The overall BPO market in Asia Pacific is expected to reach USD 5.4 billion in 2006, an increase of 13.5 percent over 2005. Australia experienced growth rates higher than the Asia Pacific average for HR BPO, at 10 percent from 2005 to 2006....

Human Resources Business Process Outsourcing (HR BPO) represents the biggest component of the overall BPO market in Asia Pacific, according to Gartner.Payroll services, benefits administration and training and development are the most common HR activities outsourced in the region. The Asia Pacific (excluding Japan) HR BPO market is expected to reach USD 1.3 billion in 2006, representing 24.7 percent of the total BPO market and an increase of 9 percent from USD 1.2 billion in 2005.The overall BPO market in Asia Pacific is expected to reach USD 5.4 billion in 2006, an increase of 13.5 percent over 2005. Australia experienced growth rates higher than the Asia Pacific average for HR BPO, at 10 percent from 2005 to 2006. The total BPO market in Australia will expand from USD 779 million in 2005 to USD 855 million in 2006.“HR has long been identified as a key area for outsourcing, usually for payroll and benefits administration services,” said TJ Singh, research director for Gartner. “As a back-office function, aspects of HR are often deemed core, yet non-critical functions and are often most companies’ first stop on the BPO journey. Payroll outsourcing is also a key area for small and midsize businesses that are often underserved by larger, more-strategic forms of BPO.”HR BPO adoption is still in its early stage in most parts of Asia Pacific, and Gartner expects healthy growth rates to continue through to 2010. India’s domestic HR BPO witnessed the highest growth rate, an increase of 23 percent from USD 97 million in 2005 to USD 119 million in 2006. Besides Australia and India, HR BPO continues to grow significantly in China, Korea, Singapore, Taiwan, Malaysia (albeit from a lower base) and Hong Kong.

Saturday, September 02, 2006

Scope for growth in the outsourcing industry for young working executives - India

The demand for outsourcing (IT and BPO) is expected to continue to be very strong. The real challenge is whether the supply will keep up with the demand as the quality of professionals is important.

In the long run, the BPO sector is expected to grow faster than IT Services because of the largeness of opportunity and the fact that it's early days yet for the Indian BPO industry to tap into this opportunity.

Decisions on whether to outsource business processes

Decisions on whether to outsource business processes, and on subsequently selecting a service provider, are highly dependent on the specific processes being considered. Although this seems obvious, we see enterprises routinely overlook this fundamental principle. Potential purchasers of a BPO service need to consider carefully what processes are candidates for BPO (for example, human resources, finance or accounting processes) and whether those processes have unique industry-specific aspects (for example, in healthcare, energy or financial services).

Outsourcing of finance and accounting (FAO)

- Outsourcing of finance and accounting (FAO) is big , its taking off and the case for it is widely recognized by leading firms.
- FAO is a key plank in transforming finance functions.
- FAO is been driven by Finance costs, labour arbitrage, process improvement and shareholder value.
- The rhetoric around business process outsourcing (BPO) failure needs to be interrogated closely. Fact and fiction as well as myths and reality need to be separated.
- Mid market and owner managed businesses BPO has been talked about for years. There are some examples but we're in the early stages.
- Others have looked at this but the model only works if you go after a particular vertical and you offshore the labour intensive aspects.