SAP, HR, outsourcing

SAP upbeat on HR outsourcing

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11 Oct 2006 | (News)

With HR outsourcing on the rise, service providers are looking to provide better security, enable process improvement and enhance cost effectiveness across service offerings.

Recognizing the potential of this segment, enterprise software major SAP started a strategic unit to focus on this upcoming business segment. This investment seems to have paid off for the company.

Today, around 9,000 companies use SAP’s Human Capital Management (HCM) application solutions to manage 54 million employees across 60 countries.

Synco Jonkeren, director, HCM BPO at SAP said that the company’s main focus in the BPO market is HRO since this segment that has matured the fastest. F&A and procurement outsourcing are also areas that are catching up.

Around 72 per cent of SAP’s HRO customer base is in the US and around 25 per cent in Europe. Jonkeren feels that there is a lot of untapped potential in this segment in Asia. He said that the reason for the HRO’s low uptake in India is because the cost margins are not yet compelling enough.

by Priya Padmanabhan
Source: CIOL

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