HRO Today Global Winter 2015 - 14

Spotlight on APAC
On The Up And Up
Multi-process HR outsourcing has experienced impressive
growth in APAC-and more is expected.
By Arkadev Basak
Broader multi-process HR outsourcing (MPHRO) has
traditionally been a Westerners' cup of tea. In fact, North
America and Europe together accounted for almost 90
per cent of all deals signed until 2010. Market leaders
such as ADP, Accenture, Aon Hewitt, IBM, and NGA
Human Resources (all American/European multinationals),
through their investment in education of buyers and
pioneering of the HR outsourcing model, drove high
adoption levels in the West. After the pioneering phase
of HR outsourcing during the middle of the last decade,
the model started achieving stability and maturity at the
close of the last decade. Western headquartered multinationals,
which now have stable and successful MPHRO
programmes running in their home geographies, turn
their attention to their operations in the East.
Post 2010, western companies started extending their
outsourcing strategy to their Asian operations. This was
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HRO TODAY GLOBAL
| WINTER 2015
driven by their comfort with the model as well as lack
of HR capability in the region and access to affordable
technology-expensive ERP systems did not always make
business sense for smaller workforce populations in these
low-cost geographies. This led to an upswing in MPHRO
adoption in the Asia Pacifi c region. 2011 was the fi rst year
to witness signifi cant buyer activity in Asia Pacifi c (APAC).
The last two years have witnessed increased traction from
APAC. In fact, in 2013, APAC accounted for a third of all
new MPHRO deal signings. Consequently, in terms of
market growth, APAC now leads the pack with a growth
rate that is more than double of the western world.
As APAC emerges as a critical component of the HRO
outsourcing jigsaw, two interesting themes are emerging:
* Buyer diversifi cation. MPHRO adoption in APAC was
initially driven by multinationals headquartered in

HRO Today Global Winter 2015

Table of Contents for the Digital Edition of HRO Today Global Winter 2015

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