SAP upbeat on BPO segment

CIOL Bureau
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Priya Padmanabhan


BANGALORE: With HR outsourcing on the rise, service providers are looking to provide better security, enable process improvement and enhance cost effectiveness across service offerings.

Recognizing the potential of this segment, enterprise software major SAP started a strategic unit to focus on this upcoming business segment. This investment seems to have paid off for the company.

Today, around 9,000 companies use SAP’s Human Capital Management (HCM) application solutions to manage 54 million employees across 60 countries.


Synco Jonkeren, director, HCM BPO at SAP said, “ Our customers face challenges such as managing risk and making sure there is no disruption in the processes. We have a standardized platform that can deliver processes.”

This program also allows enterprise the option of taking back processes in-house at any time.

Jonkeren said that the company’s main focus in the BPO market is HRO since this segment that has matured the fastest. F&A and procurement outsourcing are also areas that are catching up.


Realizing the program’s value, SAP last year extended its Safe passage program that helps enterprises to migrate to SAP from Oracle’s acquisition of PeopleSoft, JD Edwards, Siebel and Retek to BPO providers. Jonkeren said that more than 200 companies had signed up for the Safe Passage program.

In India, SAP has signed on TCS for the “BPO Services Powered by SAP” program. TCS is building a platform to provide human capital management (HCM) business process outsourcing (BPO) services that are based on mySAP ERP. SAP recently expanded its agreement that would allow TCS to explore BPO opportunities in the US, UK and India.

Around 72 per cent of SAP’s HRO customer base is in the US and around 25 per cent in Europe. Jonkeren feels that there is a lot of untapped potential in this segment in Asia. He said that the reason for the HRO’s low uptake in India is because the cost margins are not yet compelling enough.

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