BPO India --- Make way for the Paymasters (HR)!!!!

The Business Process Outsourcing (BPO) Industry in India is making hay while the sun is still shining on them by introducing the next big wave --- Outsourcing of human resource services or HR BPO estimated at $40-60 billion per annum, According to experts.

The HR BPO comprises payroll, which constitute 35 per cent of the market, benefits (31 per cent), education/training (15 per cent), recruiting/staffing (12 per cent) and others (seven per cent).

"HR BPO comes to about 33 per cent of the outsourcing pie. India has immense potential as more than 80 per cent of Fortune 1000 companies will discuss offshore BPO as a way to cut costs and increase productivity," said V Chandrasekaran, co-founder of Secova eServices, the first Indian HR BPO. Sensing the potential, Global BPO players including Fidelity, Exult and Hewitt have begun setting up operations in India. However, most HR BPO players have not leveraged the offshore advantage as yet, he Informed.
"HR opportunity is absolutely new. It is a sunrise opportunity with huge potential," Chandrasekaran, who formed Secova eServices to tap this potential, said. In HR BPO, revenues depend on the number of employees the clients have. This is in sharp contrast to a typical BPO, where the bills are charged on the workers servicing a client overseas.
Despite the huge potential, not many companies have leveraged the strategy. "The main reasons for not leveraging the HR BPO benefit have been companies being undercapitalized or not knowing enough about the HR BPO business," said Chandrasekaran.

Priyanka. S