Executive Briefings

Human Resources: To Outsource or Not to Outsource, That Is The Question

In today's business world, human resource outsourcing (HRO) is becoming increasingly popular, certainly more than it was five years ago. While earlier adopters of HRO have had less than ideal experiences with their outsourcing partners (poorly integrated service delivery, lack of common HR standards, etc.), today's outsourcing services have greatly improved.

According to a mid-2009 report by AMR Research on the state of IT outsourcing, roughly 80 percent of enterprises plan to either increase their amount of IT outsourcing or keep it the same. This dramatic change occurring in today's organizations-and its workforce-has propelled this latest trend toward outsourcing. Workers' needs are changing, HR costs are on the rise, there are increasing pressures for HR managers to stay abreast of the latest legislative changes (e.g., corporate governance), and there is an overall increasing demand to simplify HR-related activities.

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In today's business world, human resource outsourcing (HRO) is becoming increasingly popular, certainly more than it was five years ago. While earlier adopters of HRO have had less than ideal experiences with their outsourcing partners (poorly integrated service delivery, lack of common HR standards, etc.), today's outsourcing services have greatly improved.

According to a mid-2009 report by AMR Research on the state of IT outsourcing, roughly 80 percent of enterprises plan to either increase their amount of IT outsourcing or keep it the same. This dramatic change occurring in today's organizations-and its workforce-has propelled this latest trend toward outsourcing. Workers' needs are changing, HR costs are on the rise, there are increasing pressures for HR managers to stay abreast of the latest legislative changes (e.g., corporate governance), and there is an overall increasing demand to simplify HR-related activities.

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