realities of outsourcing: 11th in a series of webinar ... · 7/12/2007 · 4. loaded fte costs...
TRANSCRIPT
All Rights Reserved © 2007
Realities of Outsourcing:
11th in a Seriesof Webinar Presentations
Human Resources Outsourcing –Differences that Drive Transformation
July 12, 2007
1
Presenting today
John HaworthConsulting Principal, Global [email protected](202) 663-9254
Robert ZahlerPartner, Global [email protected](202) 663-8130
2
Discussion agenda
Pillsbury HRO point of view (POV)HR functionsDifferent character of HRORole of transformation
HRO marketplace dynamicsMulti-process HRO: success or failure?HRO supplier differentiation
HRO processArchitectTransactGovern
Lessons learned
3
What is HRO?
Human resources outsourcing (HRO) primarily focuses on processing transactions, data management, systems support, and reportingon behalf of clientsThe retained human resource (HR) organization is typically charged with human capital management strategies, HR program development and oversight HRO transactions include the operational aspects of one or more of the major processes of the HR domain:
RecruitmentPayroll BenefitsWorkforce AdministrationCompensation Learning OD and Performance ManagementService CenterHRIS
4
At a discrete process level, HR may comprise:Payroll AdministrationTime and Attendance ManagementBenefits AdministrationHR Systems Recruitment
Interestingly, each function can be outsourced as a standard HR functionEither separately or in combination, and historically has beenThis makes HR one of the most historically outsourced functionswithin the BPO landscape, if only on a partial basis
Some of these processes have their own “classic” set of measuresAny outsourcing arrangement must address the need for service levelsbased on differing measures (metrics), especially with respect to
Learning Services (measures of effectiveness)Recruitment (measures of quality)
Learning ServicesLeave AdministrationUnemployment Claims AdministrationRelocationService Center
Human resource function
5
The mission of HR is increasingly viewed as strategicThis generally is not the case with respect Finance, Facilities,or other back-office functions of most organizations
Like Supply Chain Management or IT, effective HR is seen as away to confer competitive advantageLike these disciplines, HR is increasingly being configured as
Highly skilled retained functions working in tandem withHighly competent outsourced providers of processes and technicalsupport for the transactional components of the domain
Most forward-looking companies have implemented, are in the midst of, or are planning “HR transformations” designed to shift
The heavy transactional load of the HR department to third-party suppliersWhile the development of internal competencies in Talent Management,Total Rewards and effective Workforce Administration becomes theprimary goal of the retained function
HRO is different
6
Business challenges equate to HR challenges
• Globalization of markets, value chains• Increasing rigor of regulatory regimes • Privacy and confidentiality concerns• New technologies, increasing pace of change
• Leadership in core competency discussion and its workforce implications• Leadership in global talent management - from planning to workforce optimization• Leadership in change management and innovation in the core business• Leadership in creating a boundary-less organization both within and without
These realities of the business environment mean that firms :
• Need to understand core competencies in global context• Need to develop competency in partnering• Need to drive change and innovation• Need to manage more complex market interactions
All of which demands that the new HR deliver :
Macro-economic trends
Firm-level economics
Firm-level dynamics
7
Resulting domain landscape
Where is HR now? Where is HR going?HR is in a state of changeFormer view: people as expenses
HR reporting to CFO, or to COOEmphasis on service delivery andcost control
Evolved view: people as assetsPrevalent trend: HR reports to CEOEmphasis on HR’s strategic missionand contributionTalent Management viewed as the key HR mission
Dan Walker, Head of HR at Apple is the “Chief Talent Officer”
HR is in the midst of a wide-spread“transformational” phase
ImplicationsHRO’s primarily focus should be on:
Processing transactionsData managementSystems supportReporting on behalf of clients
The retained organization should be charged with:
Human capital management strategiesHR program developmentOversight
8
Why HR is changing
Causes HR is in the midst of a wide-spread“transformational” phase, made necessary because:
Transactional work is becoming a commodityThere is growing demand for expertise regarding deployment and management of human capital There is a strong need for HR to create efficiencies, while at the same time engaging in a functional transition, up the corporate value chain
ActionsAdministrative, transactional work must be performed at lowestcost, while maintaining regulatory compliance and acceptable service levels
HR must have access to emerging technologies to achieve these goals
Service delivery models appropriate to the culture of the organization must be improved and evolved
HR activity must be seen to contribute directly to the strategic success of the enterprise
9
Through outsourcing, HR is freed to develop the strategic capability and Human Capital Management expertise that enterprises need to compete
HR transformation mission: To add more value
10
Strategy
Governance
HR Delivery Planning
HR Mgmt and Approvals
HR Service Delivery
Fulfillment & Logistics
Help Desk
HR Customer Management
Tracking and Reporting
Vendor Management
Technology Management Sou
rcin
g O
ppor
tuni
ty
After IDC
Ret
aine
d Fu
nctio
ns
Busin
ess T
rans
form
ation
Valu
e
Envisioning the retained organization
12
Source: Nelson-Hall, 2006
Thresholds are often reduced when there are opportunities for additional bundled services.
Multi-process HRO competitive landscape
13
LeadersStrongPerformersContenders
RiskyBets
Strong
Strong
Weak
Weak
Currentoffering
Strategy
Market Presence
Full vendorparticipation
Incomplete vendorparticipation
IBM
AccentureHewitt Associates
ExcellerateHROACS
ConvergysFidelityEmployerServices
Source: Forrester, 2006
High end of the HRO landscape
14
Mobilize– Initiate project – Detailed knowledge transfer from client– Review process maps and other deliverables
– Obtain operational data– Initiate base case development
Document As-Is Environment
To-Be Development– Develop To-Be scope model– Develop solution objectives and constraints– Develop HR, financial, asset and business terms requirements
Architect
Response Readiness– Update business case – Address contract terms– Refine timelines for sourcing process– Develop guiding principles for Response evaluation and scoring
– Services Scope Model (using our Visual Sourcing scope model)– Operational data & other supporting data (org charts, contracts, IT applications, etc)– Issue RFP
Develop Requirements Package for Suppliers (RFP)
861
RFP Release
Phase 1 • Architect
15
SVP H
R
Talent Managem
ent VP
Total Rew
ards VP
Workforce Adm
inistration VP
CO
E Workforce
Administration
CO
E Recruitm
ent
CO
E Payroll
CO
E Benefits
CO
E Learning
CO
E HR
IS
CO
E S
ervice Center
CO
E Com
pensation
CO
E Em
ployee and Labor R
elations
CO
E OD
& Performance
Managem
ent
CO
E C
orporate Security
CO
E Coporate Aviation
HR
Business Partner RAC
HR
Business Partner HER
C
HR
Business Partner HC
A
HR
VP Europe R
egion I
HR
VP Europe Region 2
HR
Consultancy
HR
Outsourcer
Internal Stakeholder Communications (Mgmt)External Stakeholder CommunicationsEmployee CommunicationsEnterprise HR Strategy Overall HR Policy DevelopmentTalent Management Strategy Total Rewards Strategy Workforce Administration Strategy Regulatory Compliance DesignOverall HR Process and Procedure RequirementsBudget DevelopmentHR Systems / Technology StrategyStrategies, Policies and Designs ApprovalAnalytics & Metrics RequirementsQuality and Performance RequirementsSpecial Programs Design (M&A, New Locations, etc.)Internal ConsultingSolution and Business Case ApprovalProject ManagementProcess and Procedure DevelopmentAcceptance TestingRecruitmentLearning OD & Performance ManagementPayroll, Time and AttendanceBenefits AdministrationCompensation Workforce AdministrationService CenterEmployee and Labor RelationsHRIS and Records MangementResearch and AnalysisPolicy and Legal Compliance Monitoring/ReportingHR Metrics and BenchmarkingWorkforce Analytics and ReportingProblem Management & Customer SupportConsulting and Project ManagementTechnology ManagementSourcing & Supplier ManagementCompliance ManagementHR Training and DevelopmentHR Change Management
Dev
elop
Plan
All RegionsAll business Units
Delivery Management
Strategy, Policy and Planning
Stakeholder Management
Design & Develop Solutions
Overall HR Scope Model
Rel
ate
Hertz Corporation
Ope
rate
Mea
sure
an
d A
naly
seM
anag
e
Talent Management
Total Rewards
Workforce Administration
Information and Analysis
Retained Human Resources
N/A
Business Unit
HR Outsourcer / Integrator
Other Internal (Not HR or BU)
Architect: Modeling the To-Be state for HR
The
16
HR Administration: 96 FTEs in Call Center, HRIS, Benefits Administration, Field HR, HR ProgramsRecruitment: Global Talent Management System, 21 North American FTEs in staffing administration, only North American vendor management (management of all recruiting-related vendor spend)
FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 Total
HRO FTE Cost Baseline
56 FTE Loaded Cost Baseline 1.7 4.6 4.6 4.6 4.6 1.9 22.0
Recruiting Cost Baseline
0.3 1.1 1.1 1.1 1.1 0.5 5.10.1 0.6 0.6 0.6 0.6 0.2 2.60.9 3.7 3.7 3.7 3.7 1.5 17.20.3 0.5 0.5 0.5 0.5 0.2 2.50.5 0.0 0.0 0.0 0.0 0.0 0.5
2.1 5.8 5.8 5.8 5.8 2.4 27.9TOTALS 3.8 10.4 10.4 10.4 10.4 4.4 49.9
Notes:
1. Fiscal Years begin in April.
2. Analyzes 5 year period beginning 1 September 2006, ending 31 August 2011. Thus, FY '07 includes 7 months (Sept - Mar).
3. Number of personnel, salaries, benefits, etc. are held constant throughout the 5 year period.
4. Loaded FTE Costs include salary, benefits (approximately 24%), and allocations (approximately 20%) for office and IT.
6. Assumes recruiting functions (other than Global TMS) transition in January '07, including 11 FTEs.
7. Assumes would implement TMS in September '06.
Initial Base Case($ Millions)
11 GCE Recruiting FTE Loaded CostTemp Costs
5. Baselines assume FY '07 reduction of 36 HRO FTEs; reduction of remaining in scope HRO FTEs (if any) by beginning of FY '08.
N.A. Vendor SpendGlobal Talent Management SystemTMS Implementation
Total Recruiting Baseline
Architect: Build the base case
17
RFPs outline a client’s environment, requirements, and any known challenges; it seeks (rather than prescribes) solutions
RFPs will vary in content depending on scope, complexity, and geographical span
RFPs are prepared with as much data (in the exhibits) as possible to give the providers a clear sense of whether to bid
RFPs are useful as part of the process, and need to be augmented with qualitative analysis and real-world contact with the providers
Architect: Develop the requirements package
Table of Contents1. Overview of this RFP
1.1 Purpose of this RFP1.2 Description of Client1.3 Business Objectives1.4 Structure of RFP
2. RFP Instructions and Terms and Conditions2.1 Confidentiality and Use of Information2.2 Schedule of Activities2.3 Principal Contact and Information Requests2.4 Response Submission Instructions2.5 Election Not to Respond2.6 Supplier Presentations2.7 Due Diligence Process2.8 Award of Services2.9 Modification or Termination of RFP Process2.10 Supplemental Information2.11 No Representations and Warranties2.12 Terms and Conditions2.13 Proposal Preparation Costs
3. Description of Current Environment4. Target Environment Requirements (“TER”)
4.1 Vision4.2 Objectives4.3 Constraints
5. Target Environment Design (“TED”)5.1 Executive Summary5.2 Scope Model5.3 Solution5.4 Interaction Model5.5 Implementation5.6 Performance Model5.7 Price Model5.8 Governance and Relationship5.9 Supplier’s Alternative Proposal
6. Exhibits6.1 Exhibit A: Scope Models6.2 Exhibit B: Service Levels6.3 Exhibit C: Pricing6.4 Exhibit D: [Reserved.]6.5 Exhibit E: Client’s Current HR Systems Environment
18
N : 2 - Supplier– Proposal development– Yellow Pad Sessions
N : 2 - Customer– Review and analyze supplier proposals– Downselect to finalists
– Competitively negotiate and analyze all aspects of the supplier’s offerings• Scope, solution, transition, service levels, price, business terms
– Perform due diligence (customer and supplier)– Downselect to the winning supplier(s)– Obtain management consensus
2 : 1
Finalize– Develop contract documents– Negotiate with supplier(s)– Finalize business case– Obtain management approval on final package(s)
Transact16 226
Strategy Approval– Obtain domain and executive approval on approach and supplier short-list
Sourcing Strategy– Identify the sourcing strategy to achieve the To-Be sourcing model– Bundled / best of breed / hybrid
Strategy Approved Winner(s) Selected Contract(s) Executed
26-2810-12
Phase 2 • Transact
19
1Leader in Learning Services. HRO and Business Transformation Experience. Record of delivered Learning results.
2Strong Learning offering. HRO, some BT, strong business consultancy, scale. Deep learning culture in main business.
3Broad HRO experience, HR consultancy, broad Human Capital Management view. Thought leader in HR.
4Digital Think, growing client list, operations strength, customer care (billing) expertise. Ability to scale.
5Relevant industry experience, strong technical learning offering, history and track record. Smaller, but solid.
Transact: Analyze supplier proposals
20
Concern Selected ProviderFinancial Risk:The risk of the business case not being made, service cost overruns
More specific obligations in SOW lead to reduced chance of “scope creep” and change orders; recruitment costs easier to predict (fill to bill)
Contract Risk :Legal exposure, lack of flexibility
Provider generally flexible and transparent; expected to continue, but full contract negotiations lie ahead
Execution Risk: The risk that this provider will fail to deliver
Fairly robust set of SLAs offered, at or above commercial standards for HRO, recruitment SLAs remain to be discussed in detail
Obsolescence Risk:The risk that this provider will fall behind the market
Strongly mitigated through Provider’s approach based on advanced use of technology/enhanced self service as Tier 0; committed to SAP platform
Business Risk:The risk that this provider will suffer a change of control, or business continuity lapse
CEO / Board stated commitment to “stand-alone”strategy; competitor offers have been firmly rejected
Transact: Due diligence – downselect from 2:1
21
Terms and Conditions
Schedules and Attachments
Transact: Develop contract documentsGENERAL TERMS AND CONDITIONS1. PREAMBLE1.1 Objectives1.2 Construction of Preamble1.3 Defined Terms2. THE SERVICES2.1 Obligation to Provide the Services, Generally2.2 Scope and Nature of the Services2.3 Users of the Services2.4 New Services and Replacement Services2.5 Commitment to Use Supplier for Services2.6 Cooperation and Coordination with Other Parties2.7 Evolution of the Services2.8 Certain Dependencies3. PERFORMANCE AND GOVERNANCE3.1 General Performance Obligation3.2 Service Locations3.3 Time of Performance3.4 Manner of Performance3.5 Performance Measurement3.6 Relationship Governance and Management3.7 Changes to the Services or the Service Delivery Environments3.8 Compliance with Laws and Regulations, and Associated Customer
Policies4. SERVICE PROVIDER PERSONNEL AND SUBCONTRACTING4.1 General Requirements4.2 Subcontracting5. CUSTOMER RESPONSIBILITIES5.1 Appointment of Customer Relationship Management Personnel5.2 Customer Retained Functions5.3 Savings Clause6. CUSTOMER RESOURCES6.1 Affected Customer Personnel6.2 Customer Software6.3 Customer Facilities6.4 Customer Resources Provided to Supplier Personnel Working
On-site6.5 Other Resources7. OTHER RESOURCES REQUIRED FOR PERFORMANCE OF THE
SERVICES7.1 Equipment7.2 Third Party Services7.3 Software8. TRANSITION AND ACCEPTANCE8.1 “Transition” and “Transition Period” Defined8.2 Transition Plan8.3 Conduct of the Transition8.4 SAP Development QA review. Completion of Transition Projects8.5 Acceptance9. DATA SECURITY AND PROTECTION10. INTELLECTUAL PROPERTY RIGHTS10.1 Certain Definitions10.2 Independent IP and Supplier Methodologies10.3 Intellectual Property Rights in Work Product10.4 License Rights to Supplier Products10.5 Supplier Methodologies10.6 Intellectual Property Rights Agreements with Supplier Personnel10.7 Other Obligations and Rights Regarding Work Product10.8 Mental Impressions11. TERM AND TERMINATION11.1 Initial Term and Renewal11.2 Termination, Generally11.3 Termination By Customer11.4 Termination By Supplier11.5 Charges Upon Early Termination11.6 Extension of Termination Date11.7 Partial Termination11.8 Disengagement Assistance12 CHARGES AND RELATED PROVISIONS12.1 General12.2 Invoicing and Payment Terms12.3 Taxes12.4 Benchmarking12.5 Extraordinary Circumstances12.6 Potential Future Charges12.7 Resource and Budget Planning/Forecasting
13. AUDITS AND RECORDS13.1 Audit Rights13.2 Audit Follow-up13.3 Confidentiality of Audits13.4 Records Retention13.5 Supplier Audits13.6 Sarbanes Oxley Compliance14. PROCEDURES MANUAL15. REPRESENTATIONS, WARRANTIES AND COVENANTS BY
PROVIDER15.1 Work Standards and Data Integrity15.2 Efficiency and Cost Effectiveness15.3 Deliverables15.4 Maintenance of the Service Delivery Environment15.5 Compatibility15.6 Non-Infringement15.7 Viruses15.8 Disabling Code15.9 No Improper Inducements16. MUTUAL REPRESENTATIONS AND WARRANTIES16.1 Mutual Representations and Warranties16.2 DISCLAIMER17. CONFIDENTIALITY17.1 “Confidential Information” Defined17.2 Obligations of Confidentiality17.3 No Implied Rights17.4 Compelled Disclosure17.5 Confidential Treatment of the Agreement17.6 Return or Destruction17.7 Duration of Confidentiality Obligations18. INSURANCE19. INDEMNIFICATION19.1 “Claim” and “Losses” Defined19.2 Indemnification By Supplier19.3 Infringement Claims19.4 Indemnification by Customer19.5 Exclusions from Infringement Indemnities19.6 Indemnification Procedures19.7 Subrogation19.8 Direct Contract or Tort Claims Not Covered.20. LIABILITY20.1 Limitations of Liability20.2 Force Majeure21. RULES OF CONSTRUCTION21.1 Entire Agreement21.2 Contract Amendments and Modifications21.3 Governing Law and Competent Courts21.4 Relationship of the Parties21.5 Consents and Approvals21.6 Waiver21.7 Remedies Cumulative21.8 Headings21.9 Section References21.10 Schedule References21.11 Use of Certain Words21.12 Order of Precedence21.13 Severability21.14 Survival21.15 Counterparts22. CONTINUED PERFORMANCE AND EQUITABLE REMEDIES22.1 Continued Performance22.2 Equitable Remedies23. MISCELLANEOUS23.1 Binding Nature and Assignment23.2 Notices23.3 Non-solicitation of Employees23.4 Covenant of Good Faith23.5 Public Disclosures23.6 Parent Guarantee
SCHEDULES AND OTHER ATTACHMENTS:
SCHEDULE A: SERVICES- EXHIBIT 1: BASE HRO SERVICES- ANNEX I: SOW- ANNEX II: SERVICE LEVELS-ANNEX III: BASE HRO SERVICES CHARGES ANNEX- EXHIBIT 2: RECRUITING SERVICES - ANNEX I: SOW- ANNEX II: SERVICE LEVELS-ANNEX III: RECRUITING SERVICES CHARGES ANNEXSCHEDULE B: EARLY TERMINATION CHARGESSCHEDULE C: CHANGE CONTROL PROCESSSCHEDULE D: HUMAN RESOURCES TERMSSCHEDULE E: BACKGROUND CHECK REQUIREMENTSSCHEDULE F: APPROVED SUBCONTRACTORSSCHEDULE G: TRANSITION PLANSCHEDULE H: SECURITY AND OTHER CUSTOMER POLICIESSCHEDULE I: DATA PRIVACYSCHEDULE J: DISENGAGEMENT ASSISTANCESCHEDULE K: SAS 70 CONTROLSSCHEDULE L: INSURANCESCHEDULE M: FORM OF PARENT GUARANTEESCHEDULE N: ACCEPTANCE PROCEDURESCHEDULE O: ESCALATION PROCEDURESCHEDULE P: DISASTER RECOVERY AND BUSINESS CONTINUITYSCHEDULE Q: END USER TERMS – SUPPLIER PRODUCTS
22
Transact: Operational service levels
Used to measure and track the service provider’s performanceagainst common industry operational metrics – challenges:
Selecting the right metrics (adequate coverage vs. excessive detail)Performance levels based on business needs, not adversarial negotiation
Pillsbury point of view: SLAs are necessary but not sufficient indicators of performance; holistic assessment is preferable, particularly in BPO relationships SLAs must be focused on business outcomes and not used to micro-manage how the service provider does its job
Sample service levels:HR transaction processing accuracy HR transaction processing timelinessCustomer (employee, manager) satisfaction with the HR services
24
3
Organisation
Processes
Organizational Readiness
People
Technical Common
Framework
Project Management
High level milestones, confirmed
during planning
TECHNOLOGY
HR InformationSystem
HRSC Technology
To BeLandscape
Configuration
TO- BE DESIGN TRANSFER OPERATEAS -IS BUILDPLAN
Governance
HR Role Model
Job Profiles Volumetrics
Accounta-bility &
Escalation
PerformanceMeasure-
ment
ComplianceData
Privacy
Business Process Design
Operational Procedures
Statement ofWork
Service Catalogue
PeopleStrategy
People Due Dilligence
People On-boarding
StakeholderAssessment
-Communication Strategy
& Plan
Communication
Material
Role Profiles
TrainingStrategy &
Plan
TrainingMaterial
Training
Test
DevelopmentStrategy
Roll-Out
Logistics Logistics
HR
Pla
n
As -
Is
Alignment and Dependency Management
Operative Project Management
Op
era
tio
ns
HR Service
ModelDelivery
TestConfiguration
10/31/06 11/30/06 1/07/07 01/31/07
High level milestones Phase I
Transact: Transition
25
– Keep the relationship current and mutually beneficialProvide ongoing external outsourcing market insight (multi-client, best practices)
Facilitate successful handover of all contractual aspects– Clear understanding of scope model– Financial / billing structure and variable pricing components
– Identify stakeholder groups and define appropriate communication forums (i.e. monthly steering committee meetings)– Ensure mutual understanding of shared risks / rewards– Facilitate joint planning sessions
Support ongoing governance requirements
GovernOngoing1
Provide contract start-up support as required
– Internal culture and dynamics– Transition of services to supplier(s)
Assist in defining change management requirements
Phase 3 • Govern
26
Lessons Learned I
Perform an Unbiased EvaluationCompanies may be unaware of the many benefits to be derived from a successful end-to-end or partial HR outsourcing If a company’s internal HR organization has not engaged in successful systems upgrades, process re-engineering, or the establishment of an efficient shared services delivery model, they may not have kept pace with the productivity and quality improvements the providers have achieved Pricing has continued to improve with some per employee delivery charges reflecting half their cost in 2000
Leverage HRO for the Right ReasonsWhile HRO is often successfully used as a means for operational cost improvement, we find that outsourcing tied to real HR transformationis often the most successful HRO as a means of achieving HR transformation maximizes performance of the company through its people – not just the performance of HR Moving the HR function up the corporate value chain is where the big payoff in HRO is to be found
27
Lessons Learned II
Leverage Your Uniqueness to Attract Bidders Companies often have hidden leverage that can be used to make a marketin their HRO opportunity
If your organization is under the radar of the bigger, better known providers,attract their interest by considering a multi-process scope, or evenmulti-tower (HRO, FAO, Procurement, etc.) scope
Consider granting liberal publicity rights, especially if you are in anindustry or a geography that a provider is trying to gain traction in
Providers are growing increasingly selective in a supply-constrained market, and your best foot forward will ensure more interest – and lower prices – than you might have achieved otherwise
HRMS Value Builds the HRO Business Case. Those companies facing an Human Resource Management System (HRMS) replacement or upgrade should consider offering that implementation (and the post-roll out maintenance and enhancement) to one of several HRO providers in the market today who are qualified to perform that work Companies often miss the opportunity to achieve a two-for-one in thesecircumstances, and incur the churn, the time demands, and the expenseof two conversions (systems and HRO) rather than one
An aging HRMS is usually a very sound driver for making an economic case forsystems upgrade and outsourcing some processes at the same time
28
Lessons Learned III
Global RelationshipsAgreements should be structured in a manner that allows thecustomer to obtain services almost anywhere in the world
Without the need to renegotiate pricing, tax, liability, or other legal orcommercial terms
Addressing these issues up front and including “form” local enabling agreements and other appropriate documentation in the agreement should allow customers to move quickly when their business requiresHR services in a new market, in a new language, or in new modes ofservice delivery
Change Management The extent of change management required to source various HR services from various providers at different times is often underestimated
This can result in relationship challenges between the service provider andthe client’s employee population
Clients have been successful in these complex change management challenges by obtaining early executive commitment to the overall HROprogram, and for the associated and often considerable transformation activities that are required of an HR organization
29
The best companies outsource to win, not to shrink. They outsource to innovate faster and more cheaply in order to grow larger, gain market share, and hire more and different specialists – not to save money by firing more people.
– Thomas Friedman, The World is Flat
The best companies outsource to win, not to shrink. The best companies outsource to win, not to shrink. They outsource to innovate faster and more cheaply in They outsource to innovate faster and more cheaply in order to grow larger, gain market share, and hire more order to grow larger, gain market share, and hire more and different specialists and different specialists –– not to save money by firing not to save money by firing more peoplemore people..
– Thomas Friedman, The World is Flat
Closing thought: Why are we doing this?