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Informative Articles

Best Practice Benchmarking - The path to Excellence
Today benchmarking is an essential ingredient in strategic planning and operational improvement. Long-range strategies if not survival require organizations to continuously change and adapt to the known marketplace of today and the expected...

Business Planning 101
SELLING YOU ON YOUR BUSINESS! You’ve probably heard it said that a business plan is a selling document. While it is very true that your business plan will be an invaluable aid to you in selling your business to others, you may not have considered...

Four Reasons Why Small Businesses Succeed (or Fail)
The American system of business management has been admired and emulated around the world. This system is characteristic of two traits in the American psyche: (1) enthusiasm for the future and making things better, and (2) an openness and...

Leadership and customer service - is there a link?
It's your first day in a new job. This is the job that you really wanted. The one that you saw advertised and immediately knew was for you. The one that you spent hours crafting an application letter for. The one that required you to beat...

Strategies to Time Management
Strategy is a planning ahead to achieve a specific goal. Some of us plan a time management scheme for one or two years, while others plan five or ten years. In college, we were taught to manage our time according to long-term and short-term...

 
HR Off-shoring / Outsourcing: A Buyer's Market

Finding a sting in rising healthcare costs, many large corporations are signing up for a reprieve by letting off-shoring / outsourcing providers handle it all, right from benefits to recruiting and all. Although, benefits administration off-shoring / outsourcing has been taking place for more than a decade, today's vendors aim to perform the entire functions of a HR department. Previously, off-shorers / outsourcers had the knowledge and expertise pertaining to one area of HR only i.e. contribution administration, and knew zilch about HR information systems or vice versa. Today, success that has come from off-shoring / outsourcing has led specialised vendors to merge in a bid to create a one-stop shop for global employers. Now, companies looking to run a particular department at half cost are smoothly able to unload the entire work to an offshore / outsourcing vendor without tying up the works.

And, as the off-shoring / outsourcing market matures, costs across all segments have experienced a sharp decline, as much as 20% in the last four to five years. Overheads for buyers with more than 25,000 employees seem to be coming down faster than for those with a workforce less than 25,000. That, is not to say small-time employers will not reap the benefits of off-shoring / outsourcing, its influence will definitely accelerate in the future as the off-shoring / outsourcing market continues to mature.

With HR service buyers reaping

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the cost reduction benefits of off-shoring / outsourcing compound functions, many more HR processes are being off-shored / outsourced to vendors, as a direct result. Certainly, one-stop stopping seems to be hitting the mark, and February 2005 saw British Telecom sign a 10-year contract renewal deal with Accenture for providing recruitment, benefits and pension administration, performance management and payroll administration services. BT was not the only one to offshore / outsource its entire HR administration; it kept good company with Marriott International Inc. and Delta Air Lines Inc. who joined it in off-shoring / outsourcing their entire HR business.

Off-shoring / outsourcing HR functions by companies is gaining momentum, not only because it helps control healthcare costs, it also leaves just one throat to choke, i.e. the vendor's if HR processes don't function smoothly, and one back to pat if things go as planned. As HR off-shoring / outsourcing speeds up, the only people to be left in HR departments of numerous companies will be the people responsible for strategic planning.

Offshore / Outsource for increased benefits!



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For further information on offshore outsourcing and offshore software development, please visit http://www.a1technology.com