Though it sounds like a win-win situation for the client and the vendor, there are several challenges in operating a successful center of excellence, mostly related to implementation and sustainability.

The growth story of RPO, an offshoot of HRO is fairly recent. With the global economy in recession post 2001, corporations were forced to resort to cost-cutting measures. Human Resources Outsourcing (HRO) was an initiative in that direction that gained prominence around 2002. Now amongst one of key segments in HR outsourcing, RPO is gaining significance and accounts for a major chunk of the HRO market.

While UK and Europe are traditionally perceived slow to offshore, these two markets are now emerging as a major demand driver for the global insurance offshoring business. While companies like Capita, Xchanging, Accenture and EDS are the larger, more established vendors in these markets (along with many smaller domestic rivals), Indian providers such as TCS BPO, EXLService, Genpact, WNS and 24/7 Customer have been winning some juicy contracts from UK insurers.