HR and technology in context; decisions in HR outsourcing. Rebecca Clake and Vanessa Robinson Advisers, Organisation and Resourcing

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1 HR and technology in context; decisions in HR outsourcing Rebecca Clake and Vanessa Robinson Advisers, Organisation and Resourcing

2 Focus What is outsourcing? Potential drivers The link to HR measurement and the changing face of HR What can go wrong and the keys to success More information at

3 What is outsourcing? Offshoring Shared service centres What is outsourcing? HRIS/Technology Outsourcing

4 What is outsourcing? Business process outsourcing (BPO) Transformational Component outsourcing Traditional Increasing impact on the business/ importance of relationship with provider

5 Current CIPD Research HR Outsourcing Approach:.HR Outsourcing..almost changing what Working Group an HR person looks Interviews with organisations like Written guidance: Executive Briefing Practical tools Ongoing network groups We are looking at whether to outsource some of our HR activities.what should we keep as core and what could be better done by a 3 rd party?

6 Potential drivers for HR outsourcing What is the fire that outsourcing is trying to put out?

7 Potential drivers for HR outsourcing Cost Value adding HR function Speed/flexibility Accessing technology Access expertise Standardising and improving processes Measuring HR performance Next carriage in the train Improving management information

8 The link to HR measurement Reporting human capital Developing credibility Generating information Measuring human capital Building knowledge Managing human capital

9 The changing face of HR

10

11

12 The HR Agenda Implementing HR strategy Developing business skills Developing/sourcing leaders Developing the HR function Measuring/showing the return on human capital Recruiting and retaining talent/employer branding Delivering Business Performance through People Delivering on the basics, HR information Systems Managing change/reorganisation Legislation Globalisation

13 What can go wrong? Case study: BP/Exult

14 What can go wrong?

15 Making the decision to outsource: factors to consider Union buy-in Core competence How well you are delivering at the moment? What value can an outsource provider add? What are the other options? What improvements could you make internally? Organisational culture Risk Senior management attitudes

16 How respondents who had an HRIS rated their contractors, and their organisation's ability to deal with that outsourced contractor Performance of contractor Value for money Organisation's management of contractor Not satisfied Satisfied CIPD Survey report People and Technology: Is HR getting the best out of IT: June 2004

17 Employers motivated mainly by cost may be more disappointed with outsourcing results than are those with other motives Measuring a company s net cost savings can be difficult. 44% of employees surveyed said their savings were undetermined US research, 2004 (Bureau of National Affairs & Soc of Human Resource Mgt)

18 Keys to success Preparing the organisation Systems management/ Information systems Trying to give the management of people back to line managers IT Stakeholders Line managers Employees

19 What activities are to be outsourced? Which provider? In-house HR Costs and service levels Clear contract/slas Relationship management Manage implementation Resolution of disputes Exit strategies Manage/support retained people Develop HR skills for new work Capability to manage outsourcing

20 . Any HR function must be a business and not a staffroom or bureaucracy for low value services.. E Lawler (2004)

21 Rebecca Clake Adviser, Organisation and Resourcing Vanessa Robinson Adviser, Organisation and Resourcing

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