Outsourced HR Shared Services are seeing a continuing spurt in demand with organizations world over realizing that it can progress from modest transactional services to tactical talent management services.
According to the UK Outsourcing Index, HR outsourcing makes for around one fourth of all outsourcing deals. Experts point out that this growth is driven by an emerging inclination towards more high-level HR services and an increasing trust in cloud based HR systems. One lesser acknowledged but widely accepted within the niche circles is the datum that outsourced providers have become smarter and adaptable to intricate client requirements.
Saving costs has always been the foremost driver in making the transition from intramural to outsourced HR services and an abundance of cloud based solutions that allow for lower implementation costs is serving as the perfect catalyst to accelerating this evolution process.
Geographical Growth of organizations is another reason behind acceptance of outsourced HR shared services as a viable innovation partner. As businesses grow and spread its arms across the country, organizations are eager for a partner who identifies the challenges in acquiring and retaining talent across different regional locations. Outsourced HR Shared Services firms like Open Mind Services Limited facilitate such growing businesses at this crucial phase and ensure smooth transition from big to colossal.
HR is more and more turning into a strategic area of business, as organizations recognize that they can utilize free time of their task force to more critical business tasks while outsourcing core HR services. Accordingly, outsourced HR shared services providers have developed expertise and tailored their services to supervise more thorny issues. The ripple effect is that these outsourced companies are being delegated with more intelligence based processes like specialist recruitment services and performance management and monitoring.
Perceptive HR experts firmly believe that Predictive Talent Management and Systematized Employee Benefits Management are the two major driving forces behind outsourcing HR shared services. However, since talent is viewed as a strategic resource of competitive advantage, organizations sometimes withhold a few elements of acquiring and retaining their star performers. Ostensibly, it gives them more control over executive hiring.
Not surprisingly, we are witnessing a market where sophisticated HR services are advocated more by progressive HR outsourcing companies. HR managers need to be receptive to new advancements so that they are able to offer solutions to their C-suite without any delay. A meticulous study of outsourced HR shared services presents evidence an outsourced team that operates as an extension of the internal organization is more accepted and respected by workers within the organization. In this arrangement, the vendor manager is a part of the internal recruitment team, is visible in office meetings and is the first escalation point. This ensures the internal recruitment team does not give up entire involvement to the outsourced partner and stays relevant in the strategic partnership.
Recruitment is fast turning into the first strategic task being assigned to outsourcing HR shared services companies, which previously were engaged more for transactional services- Multiple surveys suggest more than 50% of contracts feature recruitment process outsourcing.
The big advantage this offers is freeing up time of internal managers to focus on more complex tasks like resourcing strategies and behavior assessment practices.
The future of outsourced HR shared services looks promising. Innovations and process refinements will increase. A greater use of online resources and mobile technology will see more improvements in the onboarding process. This will eventually trigger more trust in outsourcing partners, and shall likely lead to more organizations outsource HR shared services for more tactical processes.
The challenge for outsourcing companies shall be to remain flexible in their relations with organizations to remain cost effective while tailoring solutions that meet their needs intuitively.