The Sun is Rising on HRO in Asia Pacific

As an “emerging market” the Asia Pacific (A/P) has more and more A/P companies become forces in the global marketplace as buyers and as producers – providing growth opportunities for product and service sales for companies headquartered in other regions (usually the West).

Do be aware that the markets for services like HRO already exist and are served by local and regional providers. Hence, new entrants offering unfamiliar brands to A/P buyers will need to assess their competitive value propositions for this vast, yet very localized market with a wide range of languages, price sensitivity, and HRO needs.

One of the largest A/P regional HRO service providers is Talent2, which offers payroll, RPO, traditional recruiting searches, HR administration, learning, talent management, and HR advisory services. Talent2 has services in 31 Asia Pacific and Middle Eastern countries, and its FY 2011 (ended June 30, 2011) revenues were AU$360m, up 26% from FY 2010. In operations since 2003, the company has ~1,700 personnel with offices and service centers spread across the region.

Talent2’s growth over the years had been organic, until 2008 when it added acquisition as a growth strategy and subsequently bought PCA in Japan, a payroll outsourcing and HR consulting provider. In 2010, it acquired Singapore-based Zapper Services with payroll outsourcing and HR administration in 14 A/P countries, adding ~1,000 clients, including multinational corporations (MNCs).

Having an available range of technologies and services is a benefit, especially when there are clients that are expanding their businesses for the first time and need a foundation of basic HR services with a high degree of subject matter expertise. This is also the case for large clients in mature markets looking for top quality and performance at a lower cost. Talent2 has multiple payroll offerings and other services to mix and match to meet the specific needs of clients of many sizes, verticals, with employees in one country to pan-national or global, using a broad range of languages and onshore and nearshore locations.

ADP and NorthgateArinso are two major global players that have been in the region for many years. As the A/P HRO market expands, more players will be looking to gain a foothold. With growth in many areas and services, Talent2 will need to focus its own value proposition and investments to maximize its regional advantages against what will be an even more competitive market. A sign that the company is ready to do just that is the addition of Mary Sue Rogers, one of the leading lights in the HRO community and previously the global leader of HRO for IBM. Rogers recently joined Talent2 as the Global Managing Director of HR services including payroll, HR advisory, and learning services.

No matter where the sun sets, at the end of the day, succeeding in emerging markets is the same as achieving HRO success anywhere: provide high-quality, high-performance subject matter expert services at the optimum price that solves business problems and delivers business results.

Linda Merritt, Research Analyst, HRO, NelsonHall

Interested in reading the latest HRO news from NelsonHall? Subscribe to our newsletter by emailing amy.gurchensky@nelson-hall.com with “HRO Insight” as the subject.

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Explore posts in the same categories: hr outsourcing, hr outsourcing research, hro, HRO Activity, HRO contracts, HRO providers, lbpo, learning outsourcing, payroll outsourcing, rpo, RPO providers, Talent Management

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