HR outsourcing not an HR success

by 08 Jul 2009

Many HR functions expect too much too quickly from outsourcing and are not getting involved in the decision-making process, so their objectives are neglected, experts have warned.

A recent report into the outsourcing of HR functions by the UK’s Chartered Institute of Personnel and Development (CIPD) found that only 7 per cent of those who outsourced felt it was an overall success, while only 10 per cent said it had helped them become more strategic.

It was also discovered that many HR professionals had much high er expectations than what is realistically achievable at the early stages. It was found that many companies expected immediate cost savings, which often take a lot longer to realise.

Vanessa Robinson, head of HR practice development at the CIPD, said HR was often not involved alongside procurement and finance in making the decisions about outsourcing, so their objectives “might not be given equal importance” and “could become confused” with those of other functions.

The survey found that more than a third of HR functions had no involvement at any stage of the outsourcing process.


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