Outsourcing Shared Services
Many organisations look at outsourcing their shared services:
• Economy of knowledge: outsourcers can keep up with the latest research on HR issues and with the latest technology.
• Economies of scale: outsourcers can invest in facilities and technologies beyond what is realistic fora single company.
Issues with outsourcing:
• Take care in choosing an outsourcer who can actually deliver – get them to show you they have done it in an organisation
like yours, not just tell you.
• Make sure contracts specify current and desired service levels in mutually agreeable
iterms, outline a fair and equitable
procedure for dispute resolution, and include incentives for performance for the vendor and cooperation for the company.
• Outsourcing is difficult, time consuming, prone to early errors and therefore upsetting to employees, line managers, and
HR professionals so employ effective emergent change management (not just project management ) and communications
techniques.
• When looking at outsourcing it is not all or nothing, decide what you keep in house: