HR outsourcing set to grow rapidly

The HR outsourcing market is on an upswing with corporates increasingly outsourcing HR jobs due to lack of internal expertise. According to Gartner Inc, global HR outsourcing would grow by 18% by the end of 2003. The HR-BPO revenue is set to grow to $46 billion in 2003 compared to $39 billion in 2002. Also, the market would reach $51 billion by 2004 and represent 39% of all BPO revenue.

Prashant Sachdeva, Business Analyst, Elixir Web Solutions, says "The impact of HR-BPO in India is very low and currently, only 12 to 15 companies are using this solution." According to him, if Indian IT companies such as Wipro, HCL and other small firms start using HR-BPO, then India can earn up to 10 to 15% of the global revenue, which comes to around $5 to $6 billion. 

Elixir Web Solutions handles the staffing solutions of major corporate giants such as Tata Telecom, Idea Cellular, Bharti, HCL Comnet, Convergys, Alcatel, Birla Sun Life Insurance and Aviva Life Insurance. 

Rahul Khosla, Manager, Sales-HR, Aviva Life Insurance, points out that the HR-BPO is here to stay. Adds he, "Presently, India Inc is a bit apprehensive about HR-BPO. However, with time, and within three to four years, each and every company will start accepting the benefits of this outsourcing." 

Aashish Kumar, Recruitment Officer, Convergys India, acknowledged that HR-BPO has got great potential to reduce costs and improve profit margin. With firms like Tata, Birla and Bharti looking to expand into this sector, growth is not too far away. He projects that three years down the line India will be a major revenue earner in the HR-BPO market as most of the smaller and bigger firms have started recognizing its potential.

DQCI NEWS BUREAU 

MUMBAI