HR Business Process Outsourcing

March 2011
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Point of view: HR Business Process Outsourcing

At a glance

As the first wave of HR Business Process Outsourcing (BPO) contracts which began approximately seven years ago begin to expire, many HR leaders are being forced to decide whether or not to renegotiate - or retire - existing outsourcing agreements. This presents a strategic opportunity to negotiate a new agreement that will improve outsourcing processes, efficiencies and business value which will allow HR to pursue more strategic value-adding activities.

Highlights

  • As the first wave of HR BPO contracts expire, HR leaders are being forced to decide whether to renegotiate—or retire—existing outsourcing agreements.
  • Early, proactive assessment of an existing outsourcing arrangement is critical to achieve maximum value when negotiating a new deal.
  • HR leaders must understand gaps in current outsourcing processes and performance—and be prepared to provide metrics for negotiation.
  • HR should identify improvements that must be implemented in new agreements in order to drive business value and HR effi ciency.