One of the major issues facing HR organizations today is how much should a company outsource. Many large firms have outsourced their HR departments to save money and to expedite services. Deloitte recently prepared a study on trends in the industry and what decisions drive outsourcing.
Here are some issues that are driving these changes. Things are changing on the supplier side:
•Continued provider consolidation
•New providers are entering the marketplace
•More provider-to-provider relationships are being formed
•Providers are scaling back their solutions to focus on what they do well
•Continued addition of value-added and judgment-based services (i.e., workforce analytics, global mobility, and employee relations)
•Increased use of off-shore, lift, and shift-based services
•Integration services that cross-process areas, such as reporting are becoming more prevalent
•More flexibility in number of services/processes included as part of an HRO deal
•Increased use of platform-based solutions (Software as a Service or others)
•More comprehensive, integrated product suites
•Ability for buyers to negotiate more exit rights into the contracts
•Contracts are including higher fees ―at risk‖ and higher liability limits
•Greater emphasis on continuous improvement built into the contract
•Flexibility on establishing more meaningful Service Level Agreements up front
Have you looked at your organization to determine what should or should not be outsourced from HR.?
