A debate exists in the human resource management literature about which is the true resource: HR practices or human resource capabilities. This study addresses this debate. Semi-structured interviews and qualitative data analysis techniques were used to document human resource (HR) managers’ perceptions of future organizational and people needs for their organizations. Results indicate that HR capabilities are key to these organizations. Development of core competencies, agile organizations, and effective management of human resources will be key to effectively responding to future business needs. Results also indicate the lingering effects of the Asian financial crisis and competition from local and global competitors will affect organizational and people management in the years to come. These findings inform practitioners and shed light on the application of the Resource Based View of the firm to the study of human resource management.