It's Happening Everywhere!

Interesting news from Hewlett-Packard, relative to their foray into Human Resources Outsourcing (HRO):

http://www.workforce.com/section/00/article/24/43/43.html

HRO is happening with multi-national corporations, along with the 10 person Doctor's office in your neighborhood. Why? Because it makes sense to offload adminstrative, non-revenue generating tasks that don't make money to companies that can provide the expertise and economies of scale that make it an incredibly easy decision.

Here are my favorite lines from the article, for those of you who like the Reader's Digest version:

"We are outsourcing processes that do not play an important role between the company and the employee"

"It's a very smart way to go"

"A lot of the vendors now are looking at how they can make their HRO deals more like F&A deals and shave away the complexities"

"More often than not, it's the desire for a technology refresh that is driving most of these HRO deals"

Right on! It just doesn't make sense, in a hyper-competitive business climate to handle HR "adminstrivia" on your own. Plus, if you can get a technology refresh to your old (or non-existent) HR information system (HRIS) - so much the better (and more efficient).

Consider whether your company's profitability, productivity and time would be enhanced by outsourcing everything that's "non-core". In many cases it will. HRO is just the newest kid on the block.