When everyone is predicting astronomical future about Indian outsourcing industry, I stumbled upon this piece which says human resource outsourcing actually did not blaze the river with fire. HR outsourcing saw a bit decline in India last year. Possibly there are three reasons behind these. Firstly, Hewitt, the biggest HRO provider in India saw big management changes, secondly, some supposed to be bigger players in the HRO did not perform quite well and service delivery emerged as one of the biggest issues where several first generation HRO deals faltered.
Hewitt did a great turnaround with management transition. Players like ACS and Convergys are still struggling for a positive solution. EDS, Accenture and IBM supposedly did well.
Some worries though remain:
Some of the challenges being experienced today are the result of immature marketplace dynamics providers that overcommit and clients that underweigh the changes required for substantial benefits through outsourcing. Some are also attributed to poor deal design, with inexperienced architects rushing into relationships that lack the balance or rigor of well-considered win-win models. Some of the issues are just related to poor execution.
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