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HR Business Process Outsourcing
HR business process outsourcing (BPO)
is gaining momentum once again,
after a pause for breath in the
early 2000s. The renewed flow of
outsourcing deals now being seen
across North America and Europe
confirms BPO's re-emergence as a
mainstream, practical route to
transforming HR performance and
costs.
In simple terms, HR BPO is the
outsourcing of an integrated group
of HR processes to an external
partner. Typically the contract
combines systems, end-to-end
processes, HR staff and
infrastructure.
The pivotal and pervasive role of HR
in organizations means the decision
over whether to outsource HR should
not be based purely on short-term
cost considerations. Instead,
management must first understand
what the organization needs from HR,
how BPO works, and what will happen
when it fuses these two elements
together. Costs matter - but so do
service quality, management
effectiveness and business
performance.
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