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HR outsourcing needs Govt support

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CIOL Bureau
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BANGALORE: At the Nasscom's summit on ITES-BPO strategy, the key focus was on HR outsourcing opportunities and India an outsourcing destination. Kevin M. Campbell, President and COO, Exult Inc. highlighted India as the potential location for HR outsourcing due to the talented labor pool, infrastructure, educational system, cost advantage, cultural compatibility, English proficiency and favorable climatic conditions.






He also urged entrepreneurs to take HR outsourcing as a ‘serious business’ and think long term to make it a sustainable one. He said that India would have to do tremendous leveraging on the legal and contractual issues to make India a global HR outsourcing destination.





An IDC survey on HR outsourcing indicated a five-year CAGR growth of 29.8% in 2006, to touch $ 15 Billion. The spending in 2001 was around $ 4.1 Billion, which was a growth of about 66.4% over 2000. Kevin also highlighted the driving factors for HR outsourcing to be cost reduction and capital avoidance.





"We are eyeing to achieve $ 2 billion turnover in the next two years coming in from HR outsourcing," says Kevin. He also believes that Indian HR outsourcing opportunity will need strong support from the government, as this sector is heavily dependent on quality infrastructure. "The companies need to create capacity carefully and observe healthy pricing and recruitment practices," he added.





However, he cautioned the industry not to get carried away by the hype, which eventually leads to over capacity and unhealthy competition. According to Kevin, the industry is already on the back foot due to issues like data security, data privacy, data protection, data recovery and risk management. Government support and also self-regulatory industry mechanisms will be required to ensure continued success, he said.










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