Protiviti, a subsidiary of the world’s first and the largest specialized staffing firm Robert Half International Inc (RHI - Analyst Report) , has collaborated with technology services provider Xchanging in order to provide legal and regulatory compliance related services to Southeast Asian customers.
Xchanging provides managed business processes, technology enabled outsourcing and procurement outsourcing services internationally across multiple industries. With the help of Protiviti's consulting services, Xchanging is making efforts to help its customers with regulatory requirements, internal policies and standard operating procedures.
We note that companies are nowadays increasingly focusing on compliance with contracts and procurement policies. With this collaboration, Xchanging will benefit from Protiviti’s solid consulting and internal audit services. In addition, Xchanging will enable organizations to prevent financial leakages in the purchase to payment (P2P) process.
Xchanging's customers may also gain from Protiviti's expertise in vendor recovery, data privacy and security solutions. On the other hand, Protiviti will be able to help organizations take a disciplined approach to managing credit, market and operational risks, especially in the procurement process.
Overall we remain encouraged with Robert Half’s sound fundamentals. The company is gaining from the growing demand for specialized staffing and consulting services, particularly in the U.S. Permanent placement, information technology staffing and in Protiviti operations of the company are benefiting from improving demand. Further, the improving global economic condition has increased demand for the company's temporary and permanent staffing services and risk consulting and internal audit services.
However, weak staffing demand outside the U.S., especially in Europe, is hurting revenues. Further, we believe that currency headwinds and a tough job scenario, particularly in Europe, are denting the demand for recruitment services.
Robert Half holds a Zacks Rank #3 (Hold). Other stocks in the business services sector that are performing well and are worth considering include Manpower, Inc. (MAN - Analyst Report) , Korn/Ferry International (KFY - Snapshot Report) and Stantec Inc (STN - Snapshot Report) , all carrying a Zacks Rank #1 (Strong Buy).