Transcript Alsbridge - HRO Masterclass

Global Sourcing Masterclass:
Transforming the HR Function
HRO Insights and Key Success Factors
from an Advisor perspective
William Benn, Director, HR Payroll and Change Practice
6 December 2007
Copyright © 2007 Alsbridge plc. All rights reserved.
HR context: evolving and mature
Centres of expertise
(e.g. reward, employee
relations, performance
management and competence
development, compliance)
Shared Services
and Outsourcing
Central
HR business partners
and some specialist work
HR Effectiveness
Self service technologies
HR Efficiency
Local
Global sourcing drivers
1. Cost savings
• Labour arbitrage - Offshoring provides
access to global labour markets, offering
cost savings of 30% to 50% versus
‘onshore’ sites
• Centralisation & specialisation – Offshoring
enables companies to concentrate activities
in one location, generating economies of
scale and specialisation
2. Quality and capacity gains
• Access to large and capable workforces,
expertise and infrastructure
• High numbers resources with graduate /
technical qualification
• A focus on acccreditation e.g. Six Sigma,
CMM level 5
3. Access to new markets
•
Many multinationals are seeking to
complement their plans for expanding into
new markets, by simultaneously setting up
nearshore and/or offshoring centres
Indicative HRO timeline
2–3
months
4–6
months
3–6
months
2–3
months
2 – 24
months +
Sourcing
Strategy &
Feasibility
Study
Selection
phase
Contract
Negotiations
Solution
design
(blueprint)
Transition
Continuous Engagement; Communication and Relationship Building
Ongoing
Service
Delivery
HRO key success factors
 Getting the right HRO Scope to drive a powerful, but realistic
Business Case.
 Allow HRO suppliers to propose their best solution.
 Recognise that HRO can be a “partnership”, so define and agree with
the supplier what is meant by partnership.
 Plan and implement the right retained HR Organisation to
operate in the new world of outsourced delivery and governance.
 Top class Transition and Change Management to avoid adverse
employee disruption and enable realisation of the business case.
Are you being served?
What we hear about why we’re there…
 Assurance on an achievable HRO project scope.
 The creation of a powerful and realistic business case for HRO.
 Managing risk on the HRO journey.
 Selection of the right HRO supplier(s), who will deliver the right solution.
 Healthy and liberated retained HR organisation.
 Effective governance of the on-going outsourced HR service.
 Sustainable business benefits across lifetime of HRO relationship.
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