South Africa is an HR outsourcing powerhouse

This is according to a recent survey in which it was voted as the fifth most-favoured location for global HR services.

According to the 2018-2019 Global HRO and Employee Experience Survey published by research firm Knowledge Executive, South Africa ranks as a human resource outsourcing  powerhouse. The survey also showed that recruitment process outsourcing (RPO) and employee experience (EX) initiatives will see accelerated growth and investment from global HR executives as they look to enhance workplace, employee and talent management.

Over 200 large and medium-sized enterprises in Australia, South Africa, the United Kingdom and the United States participated in the survey and disclosed their human resource outsourcing (HRO) investment plans; pain points and challenges; skills, technology and service provider requirements; and favourite offshore locations.

The participants in the survey collectively ranked South Africa in fifth place as a top global offshore location for human resource services including RPO and learning services outsourcing.

South Africa’s positioning as an HRO powerhouse is due in part to its broad range of HR services that span transactional and specialised functions, scoring well among respondents to the survey, with excellent experiences delivered for project-based (36 percent), multi-process (32 percent), recruitment process (32 percent), payroll (32 percent) and learning services (32 percent) outsourcing. The country also has evolving next-gen talent to provide customer analytics augmented by its ability to deploy cloud-enabled HRO operations utilising Robotic Process Automation (RPA) and Artificial Intelligence (AI).

The report continues to say that there will be heavy investment in the HRO sector and that general HR functional lines and processes linked predominantly to candidate sourcing (83 percent) and talent acquisition (75 percent) are the areas most likely to attract investment over the next 12 months.

However, many organisations are saddled with sunken investments into outdated legacy systems that are unable to deliver the insights and functionality needed to enhance and support the HR function amidst changing organisational demands.

“The capital requirements to digitally transform the organisation are onerous and prohibitive, which is why the majority of investments aimed at improving an organisation's technological capabilities will be directed toward outsourced providers to address these constraints,” says William Joshua, managing executive innovation and growth at Adcorp