The Hindu Business Line : `More cos outsourcing HR management'

HUMAN Capital Management as a service stream has evolved into a $1-billion-plus business opportunity. Trends point towards increased outsourcing in this new and emerging technology area, with a focus on the application service provider (ASP) model where enterprises outsource their entire HR-related processes, including recruitment, retention and related areas.

Mr Troy Kanter, the President of Human Capital Management Practice at Kenexa, a technology solutions provider focussing on human resources and management and retention of people for large global enterprises with a development centre in India, told Business Line that companies are increasingly preferring to outsource their HR-related services, lately being referred to as human capital management (HCM).

As companies prefer to concentrate on their core competencies, they choose to outsource the entire HCM to a solutions provider like Kenexa. Such services are being addressed through the ASP model where both the technology and the infrastructure are handled by a solutions provider. Mr Kanter, who is in India to oversee the development centre's operations located at Hyderabad, said after the dotcom burst, the 9/11 developments, and consequent pressure, the overall technology spend has undergone a change. The companies do not want to spend on technology in non-core areas.

Top research agencies such as Gartner, IDC and Delta have estimated that the knowledge management business space would be above $1 billion and grow rapidly. Verticals such as financial services, technology, pharmaceuticals and healthcare are among those who are adopting these methodologies.

Kenexa plans to expand its team here (engaged in the knowledge management business) from the current 75 to 100. They are part of the company's 500-plus associates, Mr Kanter said.

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