Human resources is a hugely popular area for outsourcing. It can, however, involve a range of issues. For example: Will the supplier begin to use space in the existing facilities, or the unit will be moved to their facilities? Will existing warranties transfer to the supplier? How will the cultural interface between the two organizations be managed? How will company wide processes, procedures, and so be addressed? Etc.
All these and many others will need to be carefully considered, and steps to address them included in the transition plan, the SLA and the outsourcing contract.
THE EARLY STAGES
When considering the outsourcing of human resource services, management must be very clear with respect to its expectations. It must clearly define the services themselves – in other words, exactly what it wants to be delivered.
It is always a good idea to measure these against the existing services, almost a bench-marking exercise. At the very least, this will provide useful data for use downstream, when consideration of suppliers is undertaken.
Having defined the requisite human resource service, costs should be considered. Again, it is wise to start close to home. What are the current costs? How are these projected to increase (or decrease)?
Essentially, a picture is being built here of where the organization currently stands, and where it wishes to stand, with respect to the HR service. Having established this information, the path to human resource outsourcing should be far clearer.
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