Human resource outsourcing

Human resource outsourcing

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  1 Excalibre Inc-where youdiscover your inherent potential. Cell 98188 12102
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  Landscape in 2012 $40billion in contracts will come up for renewal from 2010-2012 How buyers go about renewals is about to change . Buyers are becoming much more aggressive in going out and getting a look at what’s going on in the landscape Automatic sole-source renewal without a market check is going the way of the dodo bird because organizations want more visibility to the bottom line. They want to know the value of the supplier’s contribution. Past, renewals were typically sole source. Buyers now are hiring more third-party advisors to help them out with their renewals. Buyers are no longer willing to assume their suppliers are providing value. Buyers want to know if they are getting the right value for their money . Now the question becomes: ‘Are we with a partner that’s investing and innovative?’ Because today it’s not just about cost effectiveness.” Buyers want to ensure, will their suppliers, be able to serve them as they move forward.” 2
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  Excalibre Inc-where youdiscover your inherent potential. Cell 98188 12102 3 Shifting adoption patterns: taking a more focused approach With buyers more critically evaluating the benefits they stand to achieve from HR outsourcing, more are considering phased approaches that focus on one defined area at a time. These areas may be along individual process areas such as multi-country payroll, benefits, or recruitment or along categories of HR processes, transactional versus talent management. Several factors are driving this tighter focus- the desire to match up-front investment with pay-back benefits, the need to feel confident in supplier capabilities, and the realities of a shifting supplier landscape. In near future, it’s conceivable that some clients will have to balance a mix of suppliers until more suppliers are able to demonstrate a broader set of compelling capabilities.
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  Excalibre Inc-where youdiscover your inherent potential. Cell 98188 12102 4 The importance of global capabilities Buyers facing renewal are also now asking whether they want their work split across multiple outsourcers” or instead “want to consolidate it all together within a partnership that enables standardization across multiple locations, processes, and clients — one that has a flexible model that’s global in nature.” Buyers with operations in 50 countries, for example, will want to select a supplier with proven capabilities in all those regions. It is extremely important to understand the local nuances. Multinational companies are now asking for global benefits administration solutions. Hence need of developing technology such that these companies can tackle the big unknown chunk of spending they’re not aware of- hence assist them understand their overall global spend.”
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  Excalibre Inc-where youdiscover your inherent potential. Cell 98188 12102 5 Process Convergence Process convergence is another trend. Past, HR organizations viewed employee retirement and health/welfare selection decisions as separate transactions. There weren’t a lot of connect points, while presently progressive HR managers are asking how they can make health and welfare decisions converge. Both buyers and suppliers are trying to figure out how this will impact HR decisions going forward.
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  Excalibre Inc-where youdiscover your inherent potential. Cell 98188 12102 6 Changes in benefits administration Fourth trend is the integration of natural adjacencies of benefits administration. They are things like wellness, voluntary benefits, absence management, and on- and off-boarding. All have advantages for HR buyers. For example, a more efficient off-boarding process can ensure an organization doesn’t pay people longer than it should. And enterprises can minimize their healthcare costs with a wellness program to change behavior. Buyers want to extend the definition of HR outsourcing to include these things. In this economy, employers will not be able to give employees as many benefits as they historically have offered. Finding ways to help employees derive benefits will absolutely be part of the HRO requirement. These types of buyer challenges will force providers to focus on innovation and investment to expand the notion of benefits administration to the natural adjacencies.
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  Excalibre Inc-where youdiscover your inherent potential. Cell 98188 12102 7 The new preference for platforms Early HRO buyers outsourced bits and pieces of the process, now, buyers are looking for the complete end-to-end solution where the supplier can provide the process services as well as the platform. It’s not going to be good enough just to be an administrator and a manager of transactions. Buyers want to outsource the complete HRO services package, which includes talent management, recruitment, learning, and development as long as the supplier has developed the core HR services like payroll, time and attendance, and workflow administration. In the past, people outsourced the process or the platform. Now they want to outsource them together and have the supplier charge them on a per-employee per- year basis.
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  Excalibre Inc-where youdiscover your inherent potential. Cell 98188 12102 8 The new preference for platforms This convergence will force providers to be clearer and more explicit about their investment strategies and how they translate innovation into real capabilities that help buyers solve problems. One thing is sure: Providers can no longer milk their 15-year-old platforms. Instead, they will have to constantly reinvent their offer because that’s what buyers will demand This is both a dramatic change and challenge; suppliers not willing to invest will lose market share because there are too many suppliers that will invest. Economic modeling, corporate governance, strategic marketing — all will become part of the new HR professionals’ tool kit. HR will become less about administration and compliance and more about executing on strategy and capability. Hopefully these changes will help corporations become more profitable and employees become healthier, wealthier, and more productive.
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  Excalibre Inc-where youdiscover your inherent potential. Cell 98188 12102 9 Lessons from the Outsourcing Journal Buyers will aggressively research their options when it’s time to renew their outsourcing agreements to ensure their suppliers are providing the value and services they need. Global HR benefits deals will become a reality as suppliers develop the technology to provide a centralized look HR processes will converge and no longer be separate events. The definition of benefits will expand to include adjacencies like wellness and on- boarding. HR buyers want both process and technology together in a seamless, end-to-end platform. This trend will force suppliers to invest in their technology so they can constantly update their offers
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