News Article

Outsourcing & HR Services

Tue, 12/01/2015 - 18:05

The panel on outsourcing & HR services began with specific questions for the panelists. Claudia Sánchez García, Vice President of Human Resources at PAE, asked Fernando Garrido, Managing Director of TMF Group to explain Mexico’s position within the use of Business Process Outsourcing (BPO). The managing director of TMF Group stated that outsourcing services has been positive, particularly with Mexico’s opening to international trade. “India, China, and Malaysia are some of the largest countries using this scheme, and in Latin America, Mexico is the biggest in the development of BPO, with a growth rate of this segment almost 12% annually.” The reason for this is that the main users of this kind of service are foreign companies arriving in Mexico. The benefit of using BPO is that it allows companies to focus directly in the development of their business. However, the main challenge is to completely fulfil client needs and comply with all the regulatory requirements.

Subsequently, moderator Sanchez directly addressed Bruno Blackmore, Partner and Co-founder of BlackTrust in order to explain the relationship between business, digitalization, and human capital. Blackmore mentioned there exist three main gaps in the evolution of the digital world. Firstly, he explained that the dot com companies are valued at almost US$60 billion, Facebook has a significant value of US$30 billion, and a third component in digitalization is the “Uberization” of the world. Yet, the correct name for our circumstance is shared-economies. After explaining this, Blackmore said that the relationship between the three concepts could be attributed to one word: Generation. This means that millennials are influencing the work place while other generations are adapting to the millennial way of functioning. He stated that, “Some companies, in Latin American countries in particular, are not adapting to change. Companies now do not want to have an HR department as we know it. We need to focus on this generation.”

Lewis Adams, Principal of Industry Practice at Heidrick & Struggles added that the digital generation has also changed with a new phenomenon called reverse mentoring, where young employees are assigned to senior staff to train them in the use of the available digital tools. The HR industry is now creating alliances and partnership relationships, rather than just transactions. He then said that, with the automotive boom in Mexico and the Energy Reform, the face of HR services in Mexico will irrevocably change, and 2016 will bring interesting challenges. According to Adams, “The main competing sector will be Tier 1 and 2, because they will need to commence operations in short timescales with the best talent possible.”

Discussing risks and trends in human capital services and outsourcing, Blackmore insisted that the HR culture is intensifying, and that evaluations, scorecards, and bonuses are no longer relevant. “Millennials should not spend more than three years in any job.” Also, the revealed that companies need to change the way in which productivity is measured. “We believe that productivity can be measured by the time we are seated in an office. Today we are helping companies to change this mindset and allow employees to work from home, which can reduce indirect costs by 80% and reduce inefficiency at the office.”

Finally, the moderator asked about the HR role in today’s corporate offices. Lewis was quick to answer, and stated that the main challenges faced by CEOs are people management and development. “HR was traditionally a support area, but now it has to play a more strategic role in the development of the company by fostering human capital.”