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.
PA Consulting Group works closely with companies in all sectors to help them prepare their unique case for outsourcing and - where appropriate - manage the procurement process. Crucially, PA is a completely independent adviser with no ties to any outsourcing organization.
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