The global marketplace is growing increasingly competitive, corporations are being required to streamline operations and cut costs in order to preserve profitability.
HRO is driven by factors like breadth and depth of coverage, domain expertise, location advantage (e.g., near-shoring and language capabilities), sales and marketing capabilities, data compliance with respect to regulatory standards (especially those defined by the United States, Canada and the European Union) and the management of business risks. Therefore it is quite likely that companies -- both with their own captives and those using third party vendors -- may use a "hub and spoke" model in which an offshore supplier may constitute the "center" whereas other units in the world may provide appropriate "spokes.
