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Research: Demand for HR Outsourcing Increases

by: Sarah Joson

Friday, July 15, 2011 |

According to the research 'Talent2 APAC Market Pulse Study' commissioned by Talent2 and conducted by Galaxy Research, HR outsourcing was seen as a viable solution by most HR executives (80-90%) who participated in the survey.

A total of 579 HR executives participated in the online survey from countries like Australia, China, Singapore, and Hong Kong. They cited HR outsourcing as the solution to manpower-related issues such as search and recruitment (64%), and employee retention (50%).

John Rawlinson, CEO of Talent2Group, pointed out: "This research reinforces that ongoing skills shortages are hampering organisations across Asia from finding the people they need to drive top line business growth. What's interesting here is that HR executives are focusing on different ways to address these challenges - namely through outsourcing, and investment in learning and development."

Other important issues for HR outsourcing in Australia are the following:

- Other than recruitment, employee development and HR consulting are the processes that may be outsourced.
- More than half of respondents say that outsourcing enables them to focus on their core business functions.
- Sixty-three percent (63%) say that service providersí lack of detailed information about the business is a major disadvantage of outsourcing business processes.


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