Local IT companies clinch big global HRO deals
IT bigwigs such as TCS, Infosys and Wipro have inked four large deals worth almost $350 million in the HRO space last year. BPO Brigade | Work from home
By TNN |
NEW DELHI: Indian IT service providers are making inroads into niche areas like HR outsourcing. IT bigwigs such as TCS, Infosys and Wipro have inked four large deals worth almost $350 million in the HRO space last year.
���Earlier, Indian companies were being awarded sub-contracted work from large HRO players. Now they have developed expertise in areas such as benefits administration and are invited to bid in almost all large HRO deals,��� said Vikash Jain, engagement director at Everest Group.
Indian IT players are able to beat large players like Accenture and IBM in the game due to attractive transaction pricing. Enterprise HRO includes a minimum of three HR functions (payroll, recruitment and HR information systems) and has typically been dominated by US companies. While Indian IT and BPO companies have been active in North American markets, most of the HRO deals signed by Indian suppliers are from Europe.
���Earlier, Indian companies were being awarded sub-contracted work from large HRO players. Now they have developed expertise in areas such as benefits administration and are invited to bid in almost all large HRO deals,��� said Vikash Jain, engagement director at Everest Group.
Indian IT players are able to beat large players like Accenture and IBM in the game due to attractive transaction pricing. Enterprise HRO includes a minimum of three HR functions (payroll, recruitment and HR information systems) and has typically been dominated by US companies. While Indian IT and BPO companies have been active in North American markets, most of the HRO deals signed by Indian suppliers are from Europe.
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���With Indian suppliers jumping on the HRO bandwagon and Europe emerging as a faster-growing market for these services than the US, India may finally look at reducing its dependence on North America, where the economy has slowed down,��� Mr Jain added.
A recent important development in HRO segment has been the tie-up of Genpact with Ceridian, a leading HRO supplier targeting companies with 3,000 to 15,000 employees.
The tie-up assumes importance since Ceridian does not have any offshore centre and would leverage Genpact���s offshore capabilities.
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